Guide

How to invoice as a sole trader

You do not need a limited company or a VAT number to send an invoice. As a sole trader you can invoice in your own name. GOV.UK sets out what the invoice must show, and the rules grow only once you register for VAT.

Last checked 3 November 2026 against GOV.UK and HMRC's VAT Notice 700/21. This is general information, not tax advice.

What every invoice must show

GOV.UK lists these for every invoice:

• a unique identification number;
• your name, address and contact details;
• the name and address of the customer you are invoicing;
• a clear description of what you are charging for;
• the date you supplied the goods or service (the supply date);
• the date of the invoice;
• the amount or amounts being charged, any VAT, and the total owed.

The extra lines for a sole trader

A sole trader's invoice must also show your own name and any business name you use. If you trade under a business name, it must also give an address where legal documents can be delivered to you. A common way to write it is "Sam Patel, trading as Patel Plastering".

If you are not VAT registered

Do not add VAT or show a VAT amount. Only VAT-registered businesses can issue VAT invoices (VAT Notice 700/21, section 3.1). Your invoice simply shows the price and the total.

You must register for VAT if your 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. You can also register voluntarily below that.

If you are VAT registered

When you supply standard-rated or reduced-rated goods or services to a VAT-registered customer, you must give them a VAT invoice, normally within 30 days of the supply. A full VAT invoice shows (VAT Notice 700/21, section 4.1):

• a sequential number, in one or more series, that identifies the invoice;
• the time of supply (the tax point), and the date of issue if different;
• your name, address and VAT registration number;
• the customer's name and address;
• a description of the goods or services and, for each one, the quantity, the unit price, the VAT rate and the amount excluding VAT;
• the total excluding VAT, the rate of any cash discount, and the total VAT in sterling.

For a supply of £250 or less including VAT, you can issue a simplified VAT invoice with fewer details (section 4.5). Construction work for a VAT-registered contractor may fall under the domestic reverse charge; the invoice generator explains when, and words the invoice for you.

Payment terms

You can set your own terms, such as payment within 14 days, a deposit up front or a discount for paying early. If you do not agree a payment date, GOV.UK says the customer must pay within 30 days of getting your invoice or the goods or service. Between businesses, an agreed payment date must usually be within 60 days unless a longer period is fair to both sides.

Put the due date and your bank details on the invoice, so the customer has everything they need to pay. If a business customer pays late, you can add statutory interest and a fixed sum: the late payment interest calculator works them out, and How to chase an unpaid invoice covers the steps after that.

Invoice numbers

Each invoice needs a number that no other invoice of yours uses. VAT rules ask for a sequential number, and allow more than one series. A simple run such as INV-0001, INV-0002 works for most sole traders. We suggest you never reuse a number. To cancel or correct an invoice, issue a credit note and keep both, so your records stay complete.

How long to keep your invoices

• Self Assessment: keep your records for at least 5 years after the 31 January submission deadline of the tax year they belong to. For example, records for 2022 to 2023, sent online by 31 January 2024, must be kept until at least the end of January 2029.
• VAT: if you are VAT registered, keep your business records for VAT for at least 6 years in general (VAT Notice 700/21).

Construction subcontractors

If you work for a contractor in construction, the Construction Industry Scheme (CIS) changes what you are paid: the contractor deducts tax from the labour part of your invoice. The CIS explainer on the invoice generator shows how the deduction is worked out, with an example.

Sources

• Invoicing and taking payment from customers, GOV.UK.
• Record keeping (VAT Notice 700/21), GOV.UK: sections 3.1, 4.1 and 4.5.
• Register for VAT, GOV.UK: the £90,000 threshold.
• Business records if you're self-employed, GOV.UK: how long to keep them.
• Late commercial payments, GOV.UK: payment periods between businesses.