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UK invoice template: what it is
An invoice is the request for payment you send after supplying goods or services; if you are VAT-registered it must be a VAT invoice with your VAT number, the VAT rate and the VAT charged. For UK sole traders and companies, with or without VAT.
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Example: a filled uk invoice
- The title says what the document is: an invoice.
- A unique number from a continuous series, allocated when you issue it.
- Your business name and address, and tax number if registered.
- Who it is for.
- Each line: description, quantity, rate and amount.
- Tax by rate.
- The total in the document's currency and format.
Worked example: the numbers behind the invoice above
| Item | Qty | Rate | Amount | Tax |
|---|---|---|---|---|
| Service design workshop, 2 days on site | 2 | £750.00 | £1,500.00 | £300.00 |
| Follow-up research synthesis and report | 12 | £85.00 | £1,020.00 | £204.00 |
| Subtotal | £2,520.00 | |||
| VAT 20% | £504.00 | |||
| Total | £3,024.00 | |||
Tax is worked out per line on the amount after any discount.
How to fill in the uk invoice
- Enter your business name, address and company number.
- Add your VAT number if registered, and the customer's details.
- List the work with quantity, price and VAT rate on each line.
- Save it; sign in to issue it with the next invoice number.
UK invoice requirements, with and without VAT
Sole traders show their own name as well as any business name they trade under. Limited companies show their full registered company name and, if they name any director on the invoice, they must name all of them.
| Detail | Not VAT registered | VAT registered |
|---|---|---|
| Unique invoice number | Yes | Yes |
| Business name and address | Yes | Yes |
| Customer name and address | Yes | Yes |
| Supply date and invoice date | Yes | Yes, plus the time of supply if different |
| VAT registration number | No | Yes |
| VAT rate and VAT per line | No | Yes |
| Totals | Amount due | Net, VAT and gross |
Worked example
A design company invoices a client for a 2-day workshop at £750 a day and 12 hours of follow-up research at £85 an hour. Net total £2,520.00, VAT at 20% £504.00, total due £3,024.00. Show the net, VAT and gross amounts, and the VAT rate against each line.
Company details on invoices
A limited company must show its full registered name on invoices. Its registered number, the part of the UK where it is registered and its registered office must appear on business letters, order forms and websites, and most companies put them in the invoice footer too.
What to put on an invoice, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "VAT invoice". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address and VAT number if registered |
| Customer | Name, address and VAT number if registered |
| Lines | Description, quantity, unit and rate. Each line carries its own tax rate. |
| Tax | VAT rate per line (standard, reduced, zero or exempt) and the VAT amount. |
| Totals | Taxable value, tax by component and the total, in the document currency. Amounts in words are customary in India. |
| Terms | Due date, bank or payment details and late-payment terms. |
UK VAT rules for an invoice
- If you are VAT-registered, a full VAT invoice shows a unique sequential number, date, time of supply if different, your name, address and VAT number, the customer's name and address, a description, quantity and price, the VAT rate per item, the total without VAT and the VAT charged in sterling (HMRC VAT Notice 700, section 16).
- Retailers may issue a simplified invoice for supplies of £250 or less including VAT.
- Issue the VAT invoice within 30 days of the tax point.
- Limited companies must show the company name, registration number and registered office address on invoices.
- Not VAT-registered? Do not show VAT or a VAT number.
Mistakes to avoid
- Editing or deleting an issued invoice instead of issuing a credit note.
- Gaps or duplicates in the number series.
- Charging the wrong tax type (for India: IGST on an intra-state sale, or CGST and SGST across states).
- Leaving out the due date and payment details, which is the commonest reason invoices are paid late.
- Rounding each line's tax differently from the total; LuckPanda computes tax per line and keeps the components adding up.
Invoice vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
What must a UK invoice include?
A unique invoice number, your business name and address, the customer's name and address, a description of what you supplied, the supply date, the invoice date, the amount due and the total. Limited companies show their full registered name. VAT-registered businesses need more; see the VAT invoice template.
Do I have to charge VAT?
Only once you are VAT registered. Registration is compulsory when taxable turnover goes over £90,000 in a rolling 12 months, and voluntary below that.
What payment terms are normal in the UK?
Thirty days is the most common. If no terms were agreed, payment between businesses is due 30 days after the later of the invoice or the supply.
Can I charge interest on late payment?
Yes, between businesses: under the Late Payment of Commercial Debts (Interest) Act 1998 you can claim interest at 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt.