Free invoice template (UK)

What is in the pack

• invoice-template-uk-vat.docx and .xlsx: full VAT invoice with per line VAT rates (20%, 5%, 0%), VAT number field and ex VAT, VAT and gross totals. The Excel version calculates every line and total for you.
• invoice-template-uk-no-vat.docx and .xlsx: the correct layout when you are not VAT registered. No VAT shown anywhere, which is what HMRC expects.
• required-fields-checklist.docx: one page listing what the law requires on every invoice, plus the extras for sole traders, limited companies and VAT invoices.
• Pre-written terms: 14 day payment terms and a late fee clause citing the Late Payment of Commercial Debts (Interest) Act 1998, so late payers know interest and compensation apply.
• Auto-numbering guidance: both templates carry a note on keeping one sequential series (INV-2026-001 onwards), which HMRC requires.

What legally must be on a UK invoice

The basics apply to every business, from a self employed cleaner to a limited company. Your invoice must include:

• The word invoice on the document
• A unique identification number that follows a sequence
• Your business name, address and contact information
• The customer's name (or business name) and address
• A clear description of what you are charging for
• The date of supply and the invoice date
• The amount per item and the total amount owed

None of this is optional. Missing fields are the most common excuse a slow payer's accounts team will use to bounce an invoice back and restart the clock, so getting the fields right is a cash flow issue, not just a compliance one.

VAT invoice template: the extra requirements

If you are VAT registered, a full VAT invoice must also show your VAT registration number, the tax point (time of supply) where it differs from the invoice date, the unit price excluding VAT, the VAT rate charged per item, the total excluding VAT and the total VAT amount in sterling. The VAT variant in this pack has a rate picker per line in Excel, so mixed rate invoices (say standard rated labour and zero rated printed matter) calculate correctly.

Two smaller rules trip people up. Retail supplies of £250 or less (including VAT) can use a simplified VAT invoice with fewer fields. And if you offer a settlement discount, the rate of that discount has to appear on the invoice too.

Sole trader vs limited company invoices

A sole trader invoice template must show your own name as well as any trading name you use, plus an address where legal documents can be served. So "Jane Smith trading as Smith Design" rather than just the brand name.

A limited company must invoice using the full registered name exactly as it appears at Companies House, and it is good practice (required on business letters, and an invoice usually counts) to include the company registration number, country of registration and registered office address. One quirk of the Companies Act: if you choose to name any director on the invoice, you must name all of them.

Both versions in this pack carry prompts for the right wording, so you delete the line that does not apply rather than trying to remember the rule.

Getting paid faster: terms that do the work for you

The template defaults to 14 day terms stated in plain sight, with the due date printed next to the invoice date. It also includes a late payment clause referencing the Late Payment of Commercial Debts (Interest) Act 1998. That Act gives every UK business the right to statutory interest at 8% above the Bank of England base rate plus fixed compensation of £40, £70 or £100 per invoice depending on size. You rarely need to collect it; stating it up front is what changes behaviour. If an invoice does go overdue, pair this template with my Invoice Chaser.

Rates and assumptions

Rates last checked: 15 July 2026. Assumes tax year 2026/27: VAT at 20%, 5% and 0%, and the £90,000 registration threshold.

What legally must be on a UK invoice?

Every UK invoice needs the word invoice, a unique sequential invoice number, your business name and address, the customer's name and address, a clear description of what you supplied, the supply date and invoice date, the amount per item and the total due. Sole traders must show their own name plus any trading name. Limited companies must show the full registered name, company number and registered office.

What extra information does a VAT invoice need?

A full VAT invoice also needs your VAT registration number, the tax point if it differs from the invoice date, the unit price excluding VAT, the VAT rate per item, the total excluding VAT and the total VAT in sterling. For retail sales of £250 or less including VAT you can issue a simplified VAT invoice.

Is there a free invoice template for self employed and sole traders?

Yes. This pack includes a self employed and sole trader invoice template in Word and Excel with no VAT shown, which is correct if you are not VAT registered. It comes with 14 day payment terms and a statutory late fee clause already written in.

Should I charge VAT on my invoices?

Only if you are VAT registered. If you are not registered you must not show or charge VAT at all. You must register once your taxable turnover passes £90,000 in any rolling 12 month period, and you can register voluntarily below that.

What payment terms should I put on an invoice?

If you do not agree terms, the legal default for business to business invoices is 30 days. Most small businesses do better stating 14 days clearly on every invoice, plus a late payment clause. The templates in this pack use 14 day terms and cite the Late Payment of Commercial Debts (Interest) Act 1998, which lets you add statutory interest at 8% above the Bank of England base rate and £40 to £100 fixed compensation per late invoice.

How should I number my invoices?

Use one unbroken sequence, for example INV-2026-001 then INV-2026-002. HMRC requires invoice numbers to be sequential with no gaps or duplicates. If you cancel an invoice, keep the number in the sequence and mark it cancelled rather than reusing it.

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