What to include on a UK invoice legally (2026): HMRC fields, VAT and CIS
What to include on a UK invoice legally (2026): HMRC fields, VAT and CIS
By InvoiceAdept Team4 September 2026Updated 4 September 202613 min read
If you invoice UK customers for goods or services, the document has to carry specific legal fields. Miss them and clients delay payment, HMRC may question your records, and VAT-registered customers may refuse to reclaim input tax on a broken invoice.
This page is the legal field checklist for 2026 — not a first-invoice story and not a template gallery. For a blank sole-trader layout with worked examples, use the self-employed invoice template. For the twelve VAT lines in depth, see VAT invoice requirements UK 2026. For CIS subcontract bills, see how to invoice as a CIS subcontractor.
Rules below were checked against GOV.UK and HMRC manuals on 4 September 2026. This is general information for UK trades and small suppliers, not tax or legal advice. Confirm on GOV.UK before you rely on a figure.
InvoiceAdept is from Tech Me Today Ltd, Companies House 15917255, ICO ZB944663. Free plan: 5 invoices a month. Pro £7.99. Pro+ £12.99 (CIS). We store digital records of the invoices you raise. We do not file CIS300 returns, VAT returns or Making Tax Digital updates to HMRC.
In short
Topic | 2026 position | Where to go deeper |
|---|---|---|
Core fields | Unique number, your details, customer details, description, supply date, invoice date, amounts, VAT if applicable, total | |
Sole trader extras | Your name + any trading name; address where legal documents can be delivered | Same GOV.UK page |
Limited company extras | Full company name as on the certificate of incorporation; if you name any director, name all | Same GOV.UK page |
VAT registration threshold | £90,000 taxable turnover (rolling 12 months). £85,000 is historical only | |
Full VAT invoice | Extra particulars in VATREC5010 / Notice 700/21 | |
CIS | Deduct from labour only; show materials separately | |
Domestic reverse charge | Often no VAT on the total — customer self-accounts; state reverse charge on the invoice | |
B2B late payment | Statutory interest = Bank Rate + 8%. With Bank Rate 3.75% (held 30 July 2026) that is 11.75%, using the six-month reference date | |
MTD | Keep digital records that support your returns. InvoiceAdept stores invoices; it does not file to HMRC | Soft CTA below |
GOV.UK must-include fields on every UK invoice
GOV.UK’s Invoices — what they must include sets the floor for business invoices. Start here before you add VAT, CIS or reverse-charge lines.
Field | Required? | Practical note for trades |
|---|---|---|
Unique identification number | Yes | Sequential series; do not reuse a voided number — see invoice numbering |
Your company / business name, address and contact information | Yes | Match what customers and HMRC expect to see |
Customer name and address | Yes | Bill the payer (contractor, landlord, company), not always the site tenant |
Clear description of what you are charging for | Yes | Job type, site address, labour vs materials where it matters |
Date the goods or service were provided (supply date) | Yes | When the work was done, or the tax point for a deposit advance |
Date of the invoice | Yes | Often the same day as supply; can differ on batch billing |
Amount(s) being charged | Yes | Line totals that add up |
VAT amount if applicable | Yes, when VAT applies | Only if you are VAT-registered and charging VAT (or showing reverse charge) |
Total amount owed | Yes | The figure the customer actually pays |
There is no single mandated layout. A Word PDF, a handwritten job sheet that carries every field, or software output can all be valid. What fails is missing particulars — especially for VAT-registered customers who need a proper VAT invoice to reclaim input tax.
You must give a VAT invoice by law when both you and the customer are VAT-registered (business-to-business). An invoice is not the same as a receipt (acknowledgement of payment). Source: GOV.UK invoicing overview.
Sole trader vs limited company: what changes on the invoice
The core list above applies to everyone. Structure adds a few extras.
Structure | Extra legal requirements on the invoice | Common mistake |
|---|---|---|
Sole trader | Your own name and any business / trading name; an address where legal documents can be delivered if you use a business name | Showing only a trading name with no personal name, or a PO box with no deliverable address |
Limited company | Full company name exactly as on the certificate of incorporation | Shortening “Ltd” names or using a brand that is not the registered company |
Limited company — directors | If you put director names on invoices, you must include the names of all directors | Naming one director and omitting the rest |
Partnership | Partners’ names and the partnership trading style as appropriate for your setup | Mixing personal bank details with a partnership trading name without clarity |
UTR (Unique Taxpayer Reference) is not a universal invoice field. Put it on CIS construction invoices where the contractor needs it for the deduction statement. Do not scatter UTR on every domestic homeowner bill.
National Insurance number does not belong on a customer-facing invoice.
Many UK tradespeople also find it helpful to review Conservatory invoice template UK at this stage.
VAT invoice particulars (VATREC5010 and Notice 700/21)
Once you are VAT-registered and issuing a full VAT invoice, HMRC’s internal manual VATREC5010 lists the particulars (aligned with VAT Regulations 1995, regulation 14, and covered in Notice 700/21 in practical guidance). In plain English for trades:
Particular | What to show |
|---|---|
Unique sequential number | One or more series that uniquely identify the document |
Time of supply (tax point) | When the goods or services were supplied |
Date of issue | Invoice date |
Your name, address and VAT registration number | As on your VAT registration certificate |
Customer name and address | The person buying the supply |
Description of goods or services | Specific enough to identify the supply |
Quantity or extent of services | Hours, days, units, rooms — not “works as discussed” alone |
Unit price (where relevant) | Day rate, fixed price, unit cost |
Rate of VAT and amount payable excluding VAT (per line) | e.g. 20% standard, 5% reduced, 0% zero-rated |
Gross total excluding VAT | Net of VAT |
Rate of any cash discount offered | If you offer one |
Total VAT chargeable in sterling | Even if you quote in another currency for commercial reasons |
Reverse charge indication | Where the customer accounts for the VAT |
Margin scheme indication | Only if you use a second-hand / margin scheme |
Simplified VAT invoices exist for supplies of £250 or less (fewer fields). Full particulars apply above that. For the trades walkthrough of all twelve fields, use VAT invoice requirements UK 2026.
VAT threshold: £90,000 (not £85,000)
The compulsory VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period, or if you expect to exceed £90,000 in the next 30 days alone. The deregistration threshold is £88,000. These figures have applied since 1 April 2024. The older £85,000 figure is historical — do not print it on a 2026 guide or template.
Sources: GOV.UK — when to register for VAT and our when to register for VAT UK 2026 guide.
If you are not VAT-registered, do not invent a “VAT: N/A” line for decoration. Simply omit VAT. Charging VAT without registration is not clever branding — it is a compliance problem.
CIS: labour, materials and what the invoice must show
Under the Construction Industry Scheme, a contractor deducts tax from payments to subcontractors for construction operations and pays that deduction to HMRC. On the invoice you raise as a subcontractor, the practical split is:
Labour (and other CIS-liable amounts) — deduction applies at the relevant rate (commonly 20% if registered for CIS, 30% if not, or 0% gross payment status).
Materials you supply — not subject to CIS deduction; show them separately so the contractor can see what to leave alone.
Line | Example amount | CIS? | Note |
|---|---|---|---|
Labour — first fix plumbing, 3 days | £1,200 | Yes | Deduction base |
Materials — pipe, fittings, valves (as supplied) | £350 | No | Show separate |
Gross subject to CIS | £1,200 | — | Labour only here |
CIS deduction @ 20% | £240 | — | Contractor withholds |
Net payable by contractor (excl. VAT treatment) | £1,310 | — | £1,200 − £240 + £350 |
Figures are illustrative only, not market rates.
Show UTR, gross amount subject to CIS, deduction rate, deduction amount, and net payable. For the full CIS invoice walkthrough (including VAT interaction), see how to invoice as a CIS subcontractor UK and CIS explained for subcontractors.
Do not deduct CIS on a private householder invoice. CIS is a contractor–subcontractor scheme.
Domestic reverse charge: the note that belongs on the invoice
Where the VAT domestic reverse charge applies to specified construction services between VAT-registered businesses, you typically do not add VAT to the payable total. The customer accounts for the VAT on their own return. Your invoice still needs a clear reverse charge indication — VATREC5010 accepts wording such as “reverse charge supply” or “this supply is subject to the reverse charge”.
Situation | VAT on payable total? | What to write |
|---|---|---|
Both VAT-registered; reverse charge applies | No — customer self-accounts | Reverse charge note + net amounts + VAT rate the customer must account for (as required) |
You VAT-registered; reverse charge does not apply | Yes — charge VAT | Full VAT particulars |
You not VAT-registered | No VAT | No reverse charge theatre |
When CIS and reverse charge both apply, CIS still comes off the labour (pre-VAT) base; reverse charge sits on the construction supply value. Keep the lines visible so the contractor’s payroll and VAT teams can both read the bill. Sister guide: domestic reverse charge invoice UK.
Deposits and tax point (light touch)
A deposit invoice is still an invoice. Give it its own unique number. Do not reuse the final invoice number for the deposit.
Tax point (time of supply) can fall when you receive a payment in advance, or when you issue a VAT invoice, depending on the rules that apply to the supply. For trades that take a materials deposit before starting, raise a clear deposit document, then a final invoice that credits the deposit against the job total. Full layout: deposit invoice template UK.
On the final invoice, show:
Gross job total
Less deposit already paid (cite the deposit invoice number)
Balance due
That protects you in disputes and keeps the numbering trail HMRC expects.
If you are sorting this alongside other compliance work, read How to invoice for the first time UK.
Late payment: B2B statutory interest at 11.75% vs consumers
Under the Late Payment of Commercial Debts (Interest) Act 1998, most business-to-business suppliers can charge statutory interest and fixed compensation when another business pays late. GOV.UK: charging interest on late commercial payments.
Formula: statutory interest = Bank of England Bank Rate + 8%.
Checked 4 September 2026:
Fact | Figure | Source |
|---|---|---|
Bank Rate | 3.75% (held 30 July 2026) | |
Statutory annual rate while Bank Rate is 3.75% | 11.75% | 3.75% + 8% |
Next MPC decision (as published) | 17 September 2026 | BoE Bank Rate page |
Interest type | Simple, not compound | OSBC / Late Payment Act practice |
Debt figure | Invoice total including VAT where VAT was charged | OSBC calculator guidance |
The six-month reference date rule
You do not always use “today’s” Bank Rate. The rate is fixed for six-month windows from the Bank Rate in force on the preceding 30 June or 31 December:
When the debt became overdue | Bank Rate reference date |
|---|---|
1 January – 30 June | Rate in force on 31 December of the previous year |
1 July – 31 December | Rate in force on 30 June of that year |
For debts becoming overdue in H2 2026 (1 July – 31 December), use Bank Rate on 30 June 2026. With Bank Rate at 3.75%, statutory interest is 11.75%. If Bank Rate moves after that reference date, it does not rewrite the rate for debts that already became late in that window.
Overdue window | Reference date | Bank Rate (2026 context) | Statutory rate |
|---|---|---|---|
1 Jan – 30 Jun 2026 | 31 Dec 2025 | 3.75% | 11.75% |
1 Jul – 31 Dec 2026 | 30 Jun 2026 | 3.75% | 11.75% |
Daily interest (matching GOV.UK’s annual ÷ 365 style):
Daily interest = Invoice amount (incl. VAT) × 11.75% ÷ 365
Interest owed = Daily interest × days lateExample (illustrative): £2,000 overdue for 40 days at 11.75% → annual interest £235 → daily ≈ £0.64 → about £25.70 interest.
You cannot claim statutory interest if the contract sets a different interest rate that replaces it. You cannot use a lower rate against a public authority than the statutory floor. Put a due date on the invoice (7, 14 or 30 days are common in trades). If you never agree a date, GOV.UK treats payment as late 30 days after the customer gets the invoice or you finish the work (whichever is later).
Consumers / homeowners: the statutory commercial Act does not automatically apply the same way. For private clients you need a fair contractual term; unfair-terms rules still apply. Do not paste “Bank Rate + 8% under the Late Payment Act” onto every domestic bathroom quote without checking it fits.
For worked chasing steps and the calculator, see how to calculate late payment interest UK, late payment rights for tradespeople, and the live late payment interest calculator.
A short late-payment line on B2B invoices is useful, for example: “Interest may be charged on overdue B2B invoices at 8% above the Bank of England Bank Rate under the Late Payment of Commercial Debts (Interest) Act 1998.”
Making Tax Digital: records, not filing for you
Making Tax Digital (MTD) for VAT already requires digital records and software-compatible returns for VAT-registered businesses in scope. MTD for Income Tax Self Assessment continues to roll out for self-employed people and landlords above the relevant income thresholds.
What that means for your invoice:
Keep a digital copy of every invoice you issue and receive that supports your figures.
Use sequential numbering software or a disciplined manual series — gaps need an explanation (cancelled invoices kept on file are fine).
Store records for the HMRC retention periods that apply to you (often at least 5 years after the 31 January filing deadline for sole traders’ Self Assessment records; limited companies commonly 6 years from the end of the accounting period — confirm on GOV.UK for your case).
InvoiceAdept stores the digital records of invoices you raise. It does not file VAT returns, CIS300 returns, or MTD quarterly updates to HMRC. You (or your accountant) still submit through HMRC’s channels or compatible filing software. Do not assume “MTD-compliant invoicing app” means the app submits your tax for you.
Common mistakes that break UK invoices
Mistake | Why it hurts | Fix |
|---|---|---|
Vague description (“plumbing as discussed”) | Disputes and weak HMRC audit trail | Name the site, the work, labour vs materials |
Missing or duplicated invoice numbers | Sequential series is a legal / VAT expectation | One series (or clear multiple series); keep voids |
Wrong or outdated VAT threshold language (£85k) | Misleads readers and staff | Use £90,000 only for 2026 compulsory registration |
Charging VAT when not registered | Compliance risk | Register properly or omit VAT |
CIS deducted from materials or from a householder | Wrong deduction base | Labour (CIS-liable) only; contractor jobs only |
No reverse charge note when it applies | Customer cannot self-account cleanly | Add an accepted reverse charge indication |
No payment method | Invoice sits unpaid | Sort code / account name / payment link |
Invented survey stats in marketing copy | Undermines trust | Stick to GOV.UK and BoE figures |
Treating InvoiceAdept (or any app) as an HMRC filing agent | False sense of compliance | Records ≠ filing |
Related: see How to invoice subcontractors UK CIS for practical next steps.
How long to keep invoices
Keep copies of invoices you issue and relevant purchase invoices. Digital storage is acceptable. Sole traders typically keep Self Assessment records for at least five years after the 31 January deadline for the relevant tax year. Limited companies commonly keep records for six years from the end of the financial year. VAT-registered businesses also need records that support VAT returns for the periods HMRC requires. Losing records can lead to penalties — organise by tax year and back up.
Sister read: how long to keep invoices for HMRC.
Soft fit: raising a compliant invoice in InvoiceAdept
If you want the fields filled without rebuilding a Word margin every time, InvoiceAdept’s invoice generator produces numbered PDFs with supplier details, line descriptions, VAT lines when you are registered, and CIS splits on Pro+. Free is five invoices a month (hard cap). Pro £7.99. Pro+ £12.99 with CIS. Pricing.
Again: we hold records. We do not file to HMRC. Pair the tool with your accountant or HMRC’s own digital services for returns.
Worth pairing this with our guide to Proforma invoice vs tax invoice UK.
FAQ
Is there a single legal format for UK invoices?
No. GOV.UK and the Companies Act / VAT rules require information, not a government template. Any layout that carries the required fields can be valid.
What must every UK business invoice include?
A unique identification number; your name/address/contact details; the customer’s name and address; a clear description; supply date; invoice date; amounts charged; VAT if applicable; and the total owed. Source: GOV.UK.
Do sole traders and limited companies show different details?
Yes. Sole traders must show their own name and any trading name, plus a deliverable address if using a business name. Limited companies must show the full registered company name; if any director is named, all directors must be named.
What is the VAT registration threshold in 2026?
£90,000 of taxable turnover in a rolling 12 months (or expected in the next 30 days). The £85,000 figure is outdated.
What extra fields does a full VAT invoice need?
VAT number, tax point, sequential number, descriptions with quantities/extent, unit prices where relevant, net amounts and VAT rates per line, gross net total, total VAT in sterling, cash discount rate if any, and reverse charge / margin scheme notes where they apply — see VATREC5010.
How do CIS deductions appear on an invoice?
Show labour (CIS-liable) separately from materials, state the deduction rate and amount, and show net payable. Do not deduct CIS from materials or from private householders.
What should a reverse charge invoice say?
Include a clear indication such as “reverse charge supply” or “this supply is subject to the reverse charge,” and do not add VAT to the payable total where the customer must self-account.
What late payment interest can I charge another business in late 2026?
Statutory interest is Bank Rate + 8%. With Bank Rate 3.75% (held 30 July 2026), that is 11.75%, using the six-month reference date rule. Next MPC decision published as 17 September 2026. Confirm live Bank Rate on the BoE site before you claim. Consumer jobs are different.
Does InvoiceAdept file my MTD, VAT or CIS returns?
No. InvoiceAdept stores digital records of invoices you create. Filing VAT, CIS300 and MTD updates to HMRC remains your (or your accountant’s) responsibility.
Can I email a PDF invoice?
Yes. Emailing a PDF that contains all required fields is normal and legally fine. No wet-ink signature is required for validity.
How soon should I send the invoice?
As soon as the supply (or agreed stage) is complete. Delay only adds days to your cash cycle.
Where can I check the official rules?
GOV.UK invoicing and taking payment, VATREC5010, VAT registration, CIS, late commercial payments, and Bank of England Bank Rate.
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