Free Invoice Generator for UK Tradespeople

What information must a UK invoice include?

HMRC requires all UK invoices to include specific information. Missing any of these could cause problems with your tax records or delay payment from clients.

• Your business name and address
• Your client's name and address
• A unique invoice number (sequential)
• The date the invoice was issued
• A clear description of goods or services supplied
• The amount charged for each item
• The total amount owed
• Your VAT number (if VAT registered)
• The VAT amount charged (if applicable)

UK VAT rules for tradespeople

If your taxable turnover exceeds £90,000 in any 12-month period, you must register for VAT with HMRC. Once registered, you must charge VAT (currently 20% standard rate) on your services and issue VAT invoices to your clients. A VAT invoice must also include your VAT registration number.

If you're not VAT registered, you do not charge VAT and should not include a VAT number on your invoice. Our free invoice generator handles both scenarios — simply toggle VAT on or off.

Invoice number format

HMRC requires invoice numbers to be unique and sequential — but there's no prescribed format. Common formats used by UK tradespeople include:

• INV-001, INV-002, INV-003 (simple sequential)
• INV-2024-001 (year prefix)
• INV-2401-001 (year + month prefix)
• SMITH-001 (business name prefix)

Payment terms for UK tradespeople

Standard payment terms in the UK construction and trades industry are typically 30 days from the invoice date. However, you can set any terms you agree with your client.

Late payment rules in the UK

Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses have the right to charge interest on overdue invoices. The statutory rate is 8% above the Bank of England base rate. You can also claim a fixed debt recovery cost of £40–£100 depending on the invoice value.

Adding a note to your invoice about late payment charges can encourage clients to pay on time. Many tradespeople include wording such as: "Late payment interest of 8% above base rate will be charged on overdue invoices."