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UK Invoice Template with VAT

A fully HMRC-compliant invoice template for UK businesses and freelancers. Automatically calculates VAT at 20% (standard), 5% (reduced), or 0% (zero-rated). Includes mandatory fields for VAT registration number, company registration number, and registered office address. Supports domestic and EU reverse-charge invoicing.

Create This Invoice with AI

What This Template Includes

  • VAT registration number
  • Company registration number
  • VAT rate (20%, 5%, 0%)
  • Net amount
  • VAT amount
  • Gross total (GBP)

How to Create Your Invoice UK

  1. 1

    Describe your work

    Type a plain English description of the services you provided, the client, and the amount.

  2. 2

    AI generates your invoice

    InvoiceQuickly's AI fills in all fields with industry-specific formatting, tax calculations, and proper payment terms.

  3. 3

    Review, download, and send

    Check the details, download as PDF, and send directly to your client via email or a payment link.

Recommended Payment Terms

UK standard payment terms are 30 days from the invoice date. The Late Payment of Commercial Debts Act allows you to charge interest on overdue invoices at 8% plus the Bank of England base rate.

Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.

Tax Information

UK VAT-registered businesses must include: seller VAT number, sequential invoice number, invoice date, tax point, buyer details, itemised goods/services with individual VAT rates, and total VAT. VAT returns are filed quarterly via Making Tax Digital (MTD).

Industry context (2026)

UK invoicing requirements are stricter than US: HMRC mandates sequential invoice IDs, full supplier and customer addresses, VAT registration number (if applicable), VAT breakdown per rate, and a description of supplies. Standard VAT rate is 20%, with 5% reduced and 0% zero-rated for specific categories. VAT registration threshold: £90,000 annual turnover (2024/25). Making Tax Digital (MTD) is mandatory for VAT-registered businesses since April 2022 — invoices must be digitally recorded. Late-payment legislation (2013 Act) gives B2B creditors statutory rights to 8% above Bank of England base rate plus collection fees.

Worked example

Tom Bradley operates a UK consultancy under VAT registration. April invoice for a London-based client itemizes: 'Strategic advisory — April retainer (16 hrs @ £125) — £2,000', 'Workshop delivery (April 18, 4 hrs @ £180) — £720'. Subtotal £2,720. VAT @ 20% (standard rate) = £544. Total payable £3,264. Includes: Tom's VAT registration number (GB 123 4567 89), Companies House number, registered address, client's billing address, sequential invoice number per HMRC requirements (INV-2026-0042). Net 14 days from issue. UK clients reclaim input VAT; Tom remits output VAT quarterly via MTD.

Common mistakes to avoid

Missing VAT registration number on invoices

If you're VAT-registered, the VAT number must appear on every invoice along with VAT breakdown. Missing this voids the invoice for the client's VAT reclaim and can trigger HMRC penalties.

Skipping sequential numbering

HMRC requires sequential invoice IDs. Random numbering triggers audit flags. Use year-prefixed sequential (INV-2026-0001 onward); never reuse or skip numbers.

Not specifying place of supply for services

B2B services to EU clients use reverse charge (no UK VAT, client self-assesses); B2C services use UK VAT or specific schemes. Misclassification leads to incorrect VAT treatment.

Missing late-payment clause

UK Late Payment of Commercial Debts Act gives B2B creditors automatic rights (8% + base rate + £40-£100 collection fees). State the clause on every invoice to make enforcement smooth.

Invoicing Tips

  • 1Ensure your VAT number is displayed prominently — it's a legal requirement
  • 2Use sequential invoice numbers with no gaps for HMRC compliance
  • 3Show the VAT breakdown clearly: net amount, VAT amount, and gross total
  • 4For EU clients post-Brexit, use reverse-charge notation on your invoice

Related Resources

Frequently Asked Questions

What must a UK invoice include by law?

A valid UK VAT invoice must include: your business name and address, VAT registration number, invoice number, invoice date, customer details, description of goods/services, quantity, unit price, total excluding VAT, VAT rate and amount, and total including VAT.

Do I need to charge VAT on my invoices?

You must charge VAT if your taxable turnover exceeds £85,000 (2025/26 threshold). Below this threshold, VAT registration is voluntary. VAT-registered businesses charge 20% standard rate on most goods and services.

Can I charge late payment interest in the UK?

Yes, under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest at 8% above the Bank of England base rate, plus a fixed compensation amount (£40-£100 depending on the debt size).

Free UK Invoice Template with VAT — HMRC Compliant | InvoiceQuickly | InvoiceQuickly