Free UK Invoice Generator 2025

A full VAT invoice must show: a unique invoice number, your business name and address, your VAT registration number, the date of supply (tax point), a description of the goods or services, the quantity and unit price, the VAT rate applied, the VAT amount charged, and the total amount including VAT. Simplified invoices (for supplies under £250) only need the supplier's name, address, VAT number, tax point, description, and VAT-inclusive price.

For VAT-registered businesses supplying other VAT-registered businesses, you must issue a VAT invoice within 30 days of the date of supply (the tax point). For supplies to consumers or non-VAT-registered businesses there is no legal requirement to issue a VAT invoice, though a receipt is good practice. The tax point is usually the date of delivery or the date payment is received, whichever is earlier.

Under the Late Payment of Commercial Debts Act 1998, businesses can charge statutory interest of 8% above the Bank of England base rate on overdue invoices between businesses. You can also claim a fixed debt recovery charge of £40, £70, or £100 depending on the debt size. This applies automatically once payment is 30 days overdue (60 days for public sector), unless your contract specifies different terms.

HMRC requires invoice numbers to be sequential and unique but does not prescribe a specific format. Common formats include simple numbers (001, 002), year-prefixed numbers (2025-001), or date-based references (20250417-01). Gaps in invoice numbering can raise questions during a VAT inspection, so avoid deleting or reusing numbers.

There is no legal requirement under VAT rules to include payment terms, but it is strongly recommended. Standard UK payment terms are 30 days from invoice date, though you can specify any terms by agreement. Clear payment terms reduce disputes and trigger the Late Payment Act interest clock automatically once the due date passes.