How to invoice a limited company UK (2026): PO, VAT and CIS
How to invoice a limited company UK (2026): PO, VAT and CIS
By InvoiceAdept Team14 September 2026Updated 14 September 20266 min read
How to invoice a limited company UK, short answer: bill the registered company name (Companies House), quote any purchase order (PO) or job reference they gave you, put your bank details and payment terms on the PDF, and treat CIS and VAT as separate tests. Being a limited company customer does not automatically mean CIS. If they are a CIS contractor paying you as a subcontractor for construction operations, CIS may apply - check HMRC's public CIS guidance and the CISR manuals with your accountant. If you are VAT-registered (threshold £90,000), show VAT correctly; if not, do not charge VAT. Need the PDF now? Open the free invoice generator (Free: 5 invoices).
This guide is for a sole trader or trade business invoicing a UK limited company customer - not for running your own Ltd payroll or directors' drawings. Figures below are illustrative only, not market rates.
Ltd customer vs householder vs sole trader
Get the customer type right before you write the invoice. That single choice drives name, PO, CIS language and how payment chases work.
Customer type | What changes on the invoice | CIS? |
|---|---|---|
UK limited company | Use the registered name; add site address if different; quote PO / order number; often longer B2B terms | Not automatic - only if they act as a CIS contractor paying you for construction ops |
Private householder | Personal name; usually no PO; shorter "due on receipt" / 7-day terms | Usually no - householder is not a CIS contractor |
Sole trader / partnership customer | Trading name plus contact; may still use a job ref | Depends who pays and whether construction ops sit under CIS - soften; ask your accountant |
Do not paste CIS deduction narrative onto every Ltd invoice. Many Ltd customers are shops, offices, landlords' agents or professional firms with no CIS role at all.
Purchase orders, registered name and site address
Accounts teams reject invoices that do not match their purchase order system. Before you send:
Registered name - match Companies House spelling (Ltd / Limited). Trading style alone is not enough if AP needs the legal name.
PO / order / job number - put it in the header and on the first labour line when they gave you one.
Site address - if work is not at the registered office, show both bill-to and site.
Your details - name matching Self Assessment / bank account, address, email, unique sequential invoice number, invoice date.
Many UK tradespeople also find it helpful to review VAT invoice requirements UK 2026 at this stage.
What a UK invoice to a limited company must include
Field | Always? | Ltd-customer notes |
|---|---|---|
Your name or business name | Yes | Match the account they will pay into |
Your address and contact | Yes | Email helps AP queries |
Customer registered name and address | Yes | Companies House name; add site if different |
Unique sequential invoice number | Yes | No gaps; e.g. INV-LTD-2026-0042 |
Invoice date / tax point | Yes / if VAT and different | Useful when labour spans several days |
PO / order / job reference | When issued | Missing PO is a common rejection reason |
Description of services | Yes | Dates, site, hours or stages, what was done |
Net amounts, VAT if registered | Yes | Threshold framing is £90,000 - £85,000 is stale |
Payment terms and bank details | Yes / strongly recommended | e.g. 14 or 30 days; sort code + account name |
CIS UTR / deduction narrative | Only when CIS may apply | Omit when the Ltd is not acting as a CIS contractor |
Separate labour from materials when a contractor may apply CIS - do not bury free-issue main-contractor stock as yours.
Never reverse-charge a private householder. Domestic reverse charge only when eligible contractor-to-contractor tests are met.
Worked example: sole trader invoices a Ltd customer
Illustrative only - not a price list. Sole trader, VAT-registered, billing a limited company for a booked repair with a PO. Assume this Ltd is not acting as a CIS contractor for this job (e.g. ordinary commercial premises repair). Soften; facts matter.
Line | Detail | Qty | Rate | Net |
|---|---|---|---|---|
1 | Labour - replace failed pump, 14 Sep 2026, Unit 4 Riverside Estate (PO-88421; bill-to: Riverside Facilities Ltd) | 3 hrs | £60.00 | £180.00 |
2 | Materials - pump and fittings (at cost) | 1 | £95.00 | £95.00 |
Subtotal | £275.00 | |||
VAT @ 20% | £55.00 | |||
Total due | £330.00 |
Payment terms example: Due within 14 days. Bank transfer to [Account name]. Invoice number INV-LTD-2026-0042. Build the same shape in the free invoice generator.
If the same labour were billed to a CIS contractor for construction operations, add UTR where required, split labour vs materials, and follow their deduction statement process - do not invent a CIS rate on the invoice unless that is how you agreed to present it.
CIS and VAT when the customer is a limited company
Topic | Practical rule |
|---|---|
Ltd customer = CIS? | No - CIS is about contractor/subcontractor and construction operations, not company status |
Householder customer | Usually no CIS |
Contractor paying for construction labour | CIS may apply - see HMRC CIS overview and CISR manuals (e.g. CISR14100 / CISR14240); ask your accountant |
VAT threshold | £90,000 taxable turnover - £85,000 is stale |
Not VAT-registered | Do not add VAT; do not invent a VAT number |
VAT-registered ordinary labour | Often 20% - soften Notice 708; do not invent 0% for lived-in homes |
Domestic reverse charge | Only when eligible contractor-to-contractor rules apply - never on a householder |
Deemed contractor spend test | HMRC uses a £3 million construction-spend framing - not £1 million |
What InvoiceAdept does | Helps you raise clear UK invoices - does not file CIS300, VAT returns, MTD updates or Self Assessment |
CIS rates (0% / 20% / 30%) and verification sit with the contractor and your CIS status. Soften absolute claims; contract facts matter.
If you are sorting this alongside other compliance work, read Conservatory invoice template UK.
Sole trader supplier vs your own limited company
This page is about billing a Ltd customer. It is not a guide to directors' loans, dividends or payroll inside your own company. If you trade as a limited company, still use your company name, company number where AP asks for it, and the same PO / site / VAT rules above. If you are a sole trader billing a Ltd, keep your Self Assessment trading name and UTR only where CIS or the contract requires them - do not invent CIS fields on ordinary commercial invoices.
Payment terms and chasing a limited company
Many Ltd AP teams run 14 or 30 days. Put the due date, sort code and account name on the PDF so nobody chases bank details on WhatsApp. For B2B late payment, statutory interest can apply (Bank Rate + 8% where the Late Payment of Commercial Debts rules apply) - mark any worked interest example illustrative. Do not paste commercial interest wording onto a private householder invoice without checking the contract. Send while the job is fresh and attach the PO reference in the email subject when they asked for it.
Related: see How to invoice for the first time UK for practical next steps.
Common mistakes when invoicing a limited company
Mistake | Fix |
|---|---|
Trading name only, wrong Companies House spelling | Use the registered name AP expects |
Missing PO / order number | Put PO on header and first line |
Assuming every Ltd invoice needs CIS | CIS only when contractor/subcontractor + construction ops tests are met |
CIS narrative on a householder invoice | Remove CIS lines when the householder pays |
Charging VAT when not registered | Net only until you are VAT-registered |
Using stale £85,000 VAT threshold language | Current threshold framing is £90,000 |
Materials buried inside labour when CIS may apply | Split labour and materials |
Worth pairing this with our guide to How to invoice subcontractors UK CIS.
FAQ: invoicing a limited company UK
Does invoicing a limited company always mean CIS?
No. Company status alone does not trigger CIS. CIS may apply when a CIS contractor pays you as a subcontractor for construction operations. Soften; check HMRC CIS / CISR and ask your accountant.
Do I need a purchase order?
If they issued one, yes - missing POs are a common rejection. If they did not use POs, still use a clear job reference and registered name.
What name goes on the bill-to line?
The Companies House registered name. Add the site address separately when work is elsewhere.
What is the UK VAT registration threshold?
£90,000 taxable turnover. The older £85,000 figure is out of date.
Is CIS due when I invoice a householder?
Usually no. A private householder paying for work on their own home is not a CIS contractor.
Should I reverse-charge VAT on every Ltd invoice?
No. Domestic reverse charge only when eligible contractor-to-contractor rules apply. Never reverse-charge a householder. Soften Notice 708; do not invent 0% for lived-in homes.
What must appear on every invoice to a Ltd customer?
Your details, registered customer name, unique invoice number, date, clear description, amounts, payment terms, VAT details if registered, and PO when issued.
Does InvoiceAdept file CIS or VAT for me?
No. InvoiceAdept helps you create clear UK invoices (Free: 5 invoices; Pro £7.99; Pro+ £12.99). It does not file CIS300, VAT returns, MTD updates or Self Assessment.
Create your limited-company invoice with the free invoice generator
Open the free invoice generator, add the registered name and PO, split labour and materials, set payment terms, and download the PDF. Free covers 5 invoices; Pro is £7.99 and Pro+ is £12.99 when you need more. Last reviewed: 14 September 2026.
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