Free Invoice Template
A well-structured invoice is essential for getting paid on time and staying compliant with HMRC. Our free template includes all the fields required for both VAT-registered and non-VAT-registered businesses in the UK.
| Description | Qty | Unit Price | Amount |
|---|---|---|---|
| Website design and development (per statement of work) | 1 | 2,500.00 GBP | 2,500.00 GBP |
| SEO optimisation package — 3 months | 1 | 750.00 GBP | 750.00 GBP |
| Managed hosting — 12 months | 12 | 25.00 GBP | 300.00 GBP |
| Subtotal | 3,550.00 GBP |
| VAT (20%) | 710.00 GBP |
| Total Due | 4,260.00 GBP |
Early settlement discount: 2% discount if paid within 7 days.
Late payment: Statutory interest will accrue on any overdue amount at 8% per annum above the Bank of England base rate in accordance with sections 5A and 6 of the Late Payment of Commercial Debts (Interest) Act 1998, together with fixed compensation (£40 / £70 / £100 by reference to debt size) and reasonable recovery costs.
Thank you for your business. Please quote the invoice number with payment.
This invoice is issued in accordance with the Value Added Tax Act 1994, VAT Regulations 1995 reg.14 (where VAT is charged) and the Companies (Trading Disclosures) Regulations 2008. Records are retained in accordance with Making Tax Digital for VAT (Finance (No.2) Act 2017 Sch.14).
What Is an Invoice?
An invoice is a commercial document issued by a seller to a buyer requesting payment for goods sold or services provided. It itemises what was supplied, the quantities, prices, any applicable VAT, and the total amount due. In the UK, invoices form the backbone of business accounting and tax compliance.
For VAT-registered businesses, invoices must meet specific HMRC requirements to qualify as valid VAT invoices. These include the supplier's VAT number, a sequential invoice number, the tax point (date of supply), and a breakdown of VAT rates and amounts.
Even if you are not VAT-registered in the United Kingdom, issuing clear, professional invoices is good British business practice. It helps with record-keeping, reduces payment disputes, and supports your accounts if HMRC enquires into your UK tax affairs.
What's Covered in This Template
Our invoice template includes all the fields needed for full HMRC compliance:
Invoice Number
A unique sequential number identifying the invoice.
Invoice Date
The date the invoice is issued.
Tax Point
The date of supply (the "tax point") for VAT purposes.
Seller Details
Business name, address, contact information, and VAT registration number.
Buyer Details
Customer name and address.
Line Items
Description, quantity, unit price, and line total for each item or service.
VAT Breakdown
VAT rate and amount for each line, plus total VAT.
Total Amount Due
Net total, VAT total, and gross total clearly displayed.
Payment Terms
Due date, accepted payment methods, and bank details.
Additional Notes
Space for purchase order numbers, late payment terms, or other information.
How to Create an Invoice
Follow these steps to issue a professional, compliant invoice:
- 1
Add Your Business Details
Include your business name, address, contact details, company registration number (if applicable), and VAT registration number (if VAT-registered).
- 2
Add the Customer Details
Enter the customer's name and address. For VAT invoices to other businesses, include their VAT number if known.
- 3
List the Goods or Services
Describe each item or service, the quantity, the unit price, and the line total. Be specific enough that the customer can identify each charge.
- 4
Calculate VAT and Totals
Apply the correct VAT rate to each line item (20% standard, 5% reduced, 0% zero-rated, or exempt). Show net, VAT, and gross totals.
- 5
Add Payment Terms and Send
Specify when payment is due, accepted methods, and your bank details. Send the invoice promptly after delivery or completion of services.
Legal Considerations
Invoicing in the UK is subject to VAT regulations, company law requirements, and record-keeping obligations.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.
Reviewed for England & Wales law
VAT Invoice Requirements
The UK VAT Regulations 1995 specify what a British VAT invoice must contain: a unique number, the date of issue, the tax point, the supplier's name, address, and VAT number, the customer's name and address, a description of goods or services, quantities, unit prices, VAT rate, and the total amount payable. Simplified invoices (under £250) have reduced requirements under HMRC rules.
Late Payment of Commercial Debts
Under the UK Late Payment of Commercial Debts (Interest) Act 1998, British businesses can charge interest on late payments at 8% above the Bank of England base rate, plus a fixed compensation amount. Your UK invoice should state your late payment terms.
Record-Keeping
HMRC requires British businesses to keep invoices and financial records for at least six years. Under Making Tax Digital (MTD) for VAT in England and Wales, VAT-registered businesses must keep digital records and submit returns using UK-compatible software.
Company Law
The UK Companies Act 2006 requires British limited companies to display their registered company name and number on invoices. If the company is registered for VAT, the VAT number must also appear on UK invoices.
Frequently Asked Questions
Create Your Professional Invoice Now
Use our free template to issue clear, HMRC-compliant invoices. Fill in your details and download in minutes.
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