How to Invoice as a Sole Trader in the UK

As a sole trader you can invoice from day one — there is no registration needed to send an invoice, and no official template to follow. But HMRC does set out what an invoice must contain, and getting it right means fewer queries from clients, faster payment, and records that stand up if you are ever asked to justify your Self Assessment.

This guide covers exactly what to include, how trading names work on invoices, numbering, when you need to start charging VAT, payment terms, your rights when a business client pays late, and how long to keep your records.

What a sole trader invoice must include

According to GOV.UK, every invoice must show:

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

On top of that list, a sole trader invoice must show your own name and any business name you trade under.

Trading under your own name or a business name

You can trade as "Jane Smith" or under a business name such as "Smith Garden Design". If you use a business name, your invoice must still show your own name alongside it — for example Jane Smith trading as Smith Garden Design — and an address where legal documents can be delivered to you.

Invoice numbers

The only legal requirement is that each number is unique. In practice, a simple sequential scheme — INV-0001, INV-0002 — is the easiest to keep and the easiest for anyone checking your records to follow. Don't reuse or skip numbers, and never renumber an invoice after you have sent it. If an invoice is wrong, correct it with a credit note rather than editing or deleting it.

VAT: when you need to charge it

You must register for VAT when your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over that in the next 30 days alone. Until you are registered, you must not charge VAT or show a VAT number on your invoices.

You can register voluntarily below the threshold — useful if most of your clients are VAT-registered businesses that can reclaim it. Once registered, your invoices become VAT invoices and need extra details: your VAT registration number, the VAT rate and the amount of VAT charged. See our VAT invoice template for the full list, including simplified invoices for sales up to £250.

Working in construction? Different rules can apply to both your tax and your VAT — see our guide to invoicing under CIS.

Payment terms and getting paid

Agree payment terms before you start the work, then repeat them on every invoice: the due date, how to pay, and what happens if payment is late. "Payment due within 14 days of the invoice date" is common for sole traders; larger business clients often work to 30 days.

Make paying easy. Include your bank account name, sort code and account number, and consider offering card payments too. An invoice that is hard to pay is an invoice that gets paid late.

If a customer pays late

When your customer is a business, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim statutory interest — currently 11.75% a year — plus a fixed sum of £40, £70 or £100 per invoice for recovery costs, unless your contract sets its own late-payment terms. If you didn't agree a payment date, the debt becomes late 30 days after the customer received your invoice or the work, whichever is later.

Use our UK late payment interest calculator to work out the figure. The Act doesn't cover consumers: to charge a private customer interest, you need a clear term agreed in advance.

Keeping records and Making Tax Digital

Keep a copy of every invoice you send, along with the rest of your business records, for at least 5 years after the 31 January submission deadline of the relevant tax year.

Making Tax Digital for Income Tax is being phased in for sole traders and landlords based on their qualifying income:

• over £50,000 in 2024–25: from 6 April 2026
• over £30,000 in 2025–26: from 6 April 2027
• over £20,000 in 2026–27: from 6 April 2028

If you fall into one of these groups, you will need to keep digital records and send quarterly updates using compatible software — so it pays to keep your invoices digital now.

Sole trader invoice example

Create an invoice like this free, or use the UK invoice generator with pounds and UK date formats already set.