How to invoice as a sole trader in the UK

What every UK invoice must include

gov.uk's guide to invoicing lists what your invoice must include:

• a unique identification number
• your company name, address and contact information
• the company name and address of the customer you're invoicing
• a clear description of what you're charging for
• the date the goods or service were provided (supply date)
• the date of the invoice
• the amount(s) being charged
• VAT amount if applicable
• the total amount owed

For sole traders, gov.uk adds two more: your name and any business name you use, and, if you use a business name, an address where legal documents can be delivered to you.

So if you trade as "Ellison Joinery", the invoice should still show your own name, as in the example beside this guide ("Jake Ellison, trading as Ellison Joinery"), along with an address.

If you're not VAT-registered

Most new sole traders start below the VAT threshold. If that is you:

• Do not charge VAT and do not show a VAT line or a VAT number. gov.uk is clear that you must register for VAT to start charging it.
• Your invoice total is simply the price of your work.
• A short note such as "Not VAT registered" is optional but saves questions from business customers who expect to see VAT.

You must register for VAT if your VAT taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days alone. You can also register voluntarily below that, which some sole traders do when most of their customers are VAT-registered businesses that can reclaim the VAT.

Keep an eye on the rolling 12-month total, not the tax year. The test is the last 12 months at any point.

In the example beside this guide, a joiner who isn't registered bills a holiday-let company £548.50 for two doors, three hours' labour on a sash window and the ironmongery. There is no VAT line and no VAT number; the total is the price. If the same joiner registers later, the same job would show each line excluding VAT, the VAT rate, the VAT amount and his VAT number.

If you're VAT-registered

Once registered, the invoices you give to VAT-registered customers must be VAT invoices, which carry more detail. HMRC's VAT guide (Notice 700) says a full VAT invoice must show:

• a sequential number based on one or more series which uniquely identifies the document
• the time of supply (tax point) and, if different, the date of issue
• your name, address and VAT registration number
• the customer's name and address
• a description of the goods or services, with the quantity or extent of each
• for each line: the rate of VAT and the amount excluding VAT
• the total excluding VAT, the rate of any cash discount, and the total VAT in sterling

A few rules that catch people out:

• Time limit. You normally have to issue a VAT invoice within 30 days of the tax point.
• Simplified invoices. For a supply of £250 or less, you can issue a simplified VAT invoice if the customer agrees. Above £250, or if the customer asks, it must be a full one.
• Customers who aren't VAT-registered. You don't have to issue them a VAT invoice, but HMRC suggests giving one to any customer who asks, as you usually can't tell whether they are registered.

In Duebolt, add your VAT number under your business details and pick the 20%, 5% or 0% rate (or set a rate per line). The VAT number and the VAT per rate are then printed on the invoice. See the UK invoice template or the UK invoice generator.

Numbering, dates and payment terms

Number your invoices in one running sequence, such as INV-0001, INV-0002, or 2026-001 if you like the year in front. Never reuse a number; if you make a mistake, issue a correction rather than editing the original. Our guide to invoice numbers covers gaps and voids.

Show both the invoice date and the date you did the work if they differ. For VAT-registered traders this matters even more, because a full VAT invoice must show the time of supply (the tax point).

On payment terms, you can set your own (for example 14 days). gov.uk notes that if no payment date was agreed, the customer generally has to pay within 30 days of receiving the invoice or the goods or service. For chasing late payers, including the statutory interest businesses can claim from other businesses, see our overdue invoice email guide.

Keeping records

As a sole trader you must keep records of all your sales and income and all your business expenses, plus VAT records if you're registered. Every invoice you send is part of those sales records, so keep a copy of each one, in number order, together with the date it was paid.

gov.uk says you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. Its example: if you sent your 2022 to 2023 tax return online by 31 January 2024, keep the records until at least the end of January 2029.

Practical habits that make Self Assessment easier:

• Save every invoice as a PDF in a folder per tax year (6 April to 5 April).
• Mark each invoice paid as soon as the money arrives.
• Keep receipts for business expenses alongside them.

Duebolt remembers your details, customers and items on your device, and a free account keeps your three most recent documents in the cloud. It is not bookkeeping software, so store your PDFs or pass them to your accountant as well.