Discover how to issue a fully compliant invoice in the UK: what information must be included, when it must be issued and how to avoid common mistakes — plus the benefits of digital invoicing in British business practice.
What is an Invoice and Why it Matters
An invoice is a formal document issued by a seller to a buyer after delivering goods or performing services. In the UK, proper invoicing supports both bookkeeping and tax compliance. For instance, if you’re VAT-registered, a valid VAT invoice is required by HM Revenue & Customs (HMRC).
When to Issue an Invoice
After goods are delivered or services completed.
Within 30 days if you’re VAT-registered.
Keep digital or paper copies for at least 6 years (HMRC rule).
Required Invoice Details in the UK
According to HMRC guidance, every invoice should include the following:
A unique identification (invoice) number, sequential and non-repeating.
The supplier’s full name, business name (if different), and full address. For limited companies: legal company name as registered with Companies House.
The customer’s name and full address.
The date of issue of the invoice and the date of supply (or tax point) if different.
A clear description of goods or services, including quantity, unit price (if applicable), and the total net amount.
The rate of VAT, amount of VAT (if VAT applies), and the total amount due, including VAT.
If the supplier is VAT-registered: the VAT registration number must appear.
For non-VAT-registrants: the invoice must still show total due, though VAT section may be omitted.
Common Mistakes
Missing or incorrect invoice number → complicates tracking and audit readiness.
No VAT number (when required) → invalidates invoice for VAT recovery.
Date of supply not clearly distinguished from invoice date.
Unclear description of goods/services → risk of query or rejection.
Failure to keep invoices for required time → risk of penalties from HMRC.
Simplified Invoices / Small Amounts
For retail or very small value transactions (for example totals under £250 inclusive of VAT), a simplified VAT invoice format can be used.
Digital (Online) Invoicing and Benefits
Digital invoicing is increasingly supported in the UK and aligns with the government’s Making Tax Digital initiative for VAT.
Benefits of Online Invoicing
Professional branded layout with your logo and consistent style
Automatic sequential numbering and reminders
Faster payments and improved cash flow
Built-in compliance with invoice standards
Issue Your Invoice Online with MyInvoiceOnline.co.uk
Using MyInvoiceOnline.co.uk you can issue compliant UK invoices online — with sequential numbering, VAT-settings, delivery via email/PDF, and full legal compliance.
You’ll find a detailed overview of all the mandatory information in our article What Must an Invoice Include? based on UK legislation.
