Free Invoice Generator

Create your invoice with the tool above

Use the invoice generator at the top of this page to enter your business name, your client's details, an invoice number, the work you did and the amount. When you are happy, download the finished PDF and send it. Everything below explains what a UK invoice must contain, how to handle VAT correctly, and the small details that get freelancers paid on time rather than chasing for weeks.

What a UK invoice has to include

An invoice is a formal request for payment, and HMRC expects certain details on it so both you and your client have a clear record. At a minimum a UK invoice should show:

• The word "Invoice" clearly on the document, plus a unique, sequential invoice number.
• Your business name and address (and trading name if you use one).
• Your client's name and address.
• The invoice date, and the date the goods or service were supplied if different.
• A clear description of what you are charging for, the quantity and the price.
• The total amount owed, and your payment terms and bank details.

If you are a sole trader you can invoice under your own name or a trading name. A limited company must also show its registered company name and number, and the registered office address. For the full legal checklist, see the official guidance on what invoices must include on gov.uk.

How the maths works: net, VAT and gross

The figure your client pays is built from three parts. In plain words:

Gross (what they pay) = Net (your fee) + VAT (if you are VAT registered).

The standard UK VAT rate is 20%, so the formula for a VAT-registered business is simply VAT = net x 0.20 and gross = net x 1.20. If you are not VAT registered, there is no VAT line at all and the gross equals the net. The invoice generator handles this automatically once you tell it whether to add VAT, but it helps to understand what is happening so your numbers always reconcile.

Worked example: a freelancer who just landed a 5,000 job

Imagine you are a freelance designer, not VAT registered, and you have agreed a 5,000 project fee. Your invoice is straightforward: one line item at 5,000, no VAT, total due 5,000. You set 14-day terms and add your bank details. That is the whole document.

Now take the same job once you have crossed the VAT registration threshold and registered for VAT. You invoice the net fee of 5,000, then add VAT at 20%:

• Net: 5,000.00
• VAT at 20%: 5,000 x 0.20 = 1,000.00
• Total due (gross): 6,000.00

Your client pays 6,000. The extra 1,000 is not yours to keep; you hold it and pay it over to HMRC on your VAT return, minus any VAT you reclaim on your own costs. If you would rather work backwards from a gross figure your client has budgeted, our VAT calculator will split any inclusive amount back into net and VAT for you.

Worked example: mixed line items and a deposit

Say you are a contractor billing two things on one invoice: 12 days of work at 350 a day, plus 480 of materials. The labour line is 12 x 350 = 4,200. Add the 4,200 and the 480 to get a net of 4,680. If you charge VAT, add 4,680 x 0.20 = 936, for a gross of 5,616. If you took a 1,000 deposit up front, show it as a separate line ("Less deposit paid: -1,000") so the balance due reads 4,616. Itemising like this stops disputes and makes your bookkeeping painless at year end.

Getting paid faster: payment terms that work

The layout of an invoice quietly affects how quickly you get paid. A few things that genuinely move the needle:

• State a due date, not just "30 days". "Payment due by 12 July 2026" is harder to ignore than "net 30".
• Put your bank details and a reference on the invoice. Ask clients to use the invoice number as the payment reference so you can match payments instantly.
• Number invoices sequentially. It looks professional and HMRC expects a unique number on each one.
• Send it the day you finish the work. The clock on most payment terms only starts when the invoice arrives.

If a business client pays late, you have a statutory right to claim interest and a fixed recovery charge under the Late Payment of Commercial Debts legislation. You can read the rules and the current statutory interest rate on gov.uk's late payment guidance, and our late payment interest calculator works out exactly what a slow payer owes you on top of the invoice.

Keeping records and the tax side

Every invoice you raise is income that needs declaring on your Self Assessment return (the SA100 and the self-employment pages), so keep a copy of each one. HMRC requires you to keep business records for at least five years after the 31 January submission deadline for the relevant tax year. A tidy, numbered run of invoices is the simplest possible audit trail. When it is time to work out what you will owe on that income, our self-employed tax calculator estimates your income tax and Class 4 National Insurance from your profit, and the income tax calculator covers the wider picture.

Common mistakes to avoid

• Charging VAT before you are registered. You can only add VAT once HMRC has registered you and given you a VAT number, which must appear on the invoice. Adding it early is a costly error.
• Reusing or skipping invoice numbers. Duplicates confuse clients and your accounts; gaps look like you have lost paperwork. Keep them sequential.
• Forgetting your company number. Limited companies must show the registered name and number, not just the trading name.
• No payment instructions. An invoice with no bank details or due date is an invitation to be paid slowly.
• Rounding VAT oddly. Calculate VAT on the net total, then round, rather than rounding each line in a way that no longer reconciles.

One regional note: VAT and the rules for what an invoice must contain are the same across England, Scotland, Wales and Northern Ireland, so there is no separate Scottish or Welsh invoice format to worry about. Income tax rates do differ in Scotland, but that affects what you owe on your profits, not how you write the invoice itself.

These figures and pointers are estimates for guidance only and are not personal tax or financial advice. Check your own position with HMRC or a qualified adviser.

Related tools

Once your invoice is out the door, line up the rest of your admin with our quote generator for winning the work in the first place, the VAT return calculator for filing time, and the VAT invoice checker to confirm a VAT invoice has everything HMRC needs.