How to write an invoice: what to put on it, with a worked example
The gov.uk checklist for a trade invoice, plus VAT, CIS, payment terms and a worked example.
General information, not tax or legal advice. Rules change. Check GOV.UK and ask your accountant.
You have finished the job. Here is what the invoice needs so you get paid and stay legal. This is general information, not tax advice, so check with your accountant if you are unsure.
What every invoice must include
GOV.UK says all invoices must show:
- A unique identification number.
- Your business name, address and contact details.
- The customer's name, or company name, and address.
- A clear description of what you are charging for.
- The supply date (when the work was done).
- The invoice date.
- The amount or amounts charged.
- Any VAT, and the total owed.
It must also say how much the customer has to pay and when. Full list: what an invoice must include.
Extra for a sole trader
Put your own name, plus any business name you use. If you trade under a business name, also give an address for legal documents.
Extra for a limited company
Use the full company name exactly as it appears on the certificate of incorporation. If you list directors on your invoices, you must list all of them.
VAT: add it only if you are registered
If you are VAT registered, your invoice must show your VAT number and show the VAT separately. The standard rate is 20% (VAT rates).
If you are not registered, do not add VAT. GOV.UK says you must register for VAT to start charging it. So your invoice has no VAT line and no VAT number.
One more thing. Some building work between VAT registered businesses falls under the domestic reverse charge, which changes who accounts for the VAT. Read the gov.uk guidance if you work for contractors.
Labour and materials on separate lines
List labour and materials separately, never as one lump sum.
It matters if your customer is a contractor under the Construction Industry Scheme (CIS). To work out your deduction, GOV.UK tells the contractor to start with the total of your invoice, then take away certain costs you paid for, such as VAT and materials you paid for directly. The deduction rate is then applied to what is left: 20% for registered subcontractors, 30% for unregistered, or 0% with gross payment status.
Materials are only taken off if you paid for them directly. Keep your receipts, because the contractor needs evidence. If you cannot show what they cost, the contractor has to estimate it.
Worked example: floor fitter, not VAT registered
Fitting 45 m² of LVT in a kitchen and hall. Invoice no. 0007, dated 11 November 2026, work finished 10 November 2026.
| Description | Quantity | Rate | Amount |
|---|---|---|---|
| Labour: fit LVT | 45 m² | £18.00 | £810.00 |
| Materials: adhesive | 1 tub | £42.00 | £42.00 |
| Materials: levelling compound | 10 bags | £28.00 | £280.00 |
| Total due | £1,132.00 |
The working: £810 + £42 + £280 = £1,132. No VAT line and no VAT number.
If you are VAT registered, add your VAT number, then show VAT at 20% on its own line: £1,132 x 0.20 = £226.40. The total becomes £1,358.40.
Payment terms
You set your own terms. GOV.UK says you can offer discounts for early payment or ask for payment upfront. Write the due date on the invoice, for example "Payment due by 25 November 2026", and add your bank details.
If you agree no date, the customer must pay within 30 days of getting your invoice or the goods or service.
Numbering and keeping copies
Every invoice needs a unique number. Make it simple and keep going in order: 0001, 0002, 0003. Never reuse a number.
Keep copies. GOV.UK says self-employed people must keep records for at least 5 years after the 31 January submission deadline of the relevant tax year. There is an exception if you send a return more than 4 years after the deadline. Read how long to keep your records.
If the invoice is paid late
Chase politely first, in writing. GOV.UK says you have the right to charge interest for late payment, but you can choose not to. For business to business work the page gives 8% plus the Bank of England base rate. Check the current base rate and the full rules on the late commercial payments page before you charge anything.
Send the invoice as soon as the job is signed off, keep a note of when you sent it and who you sent it to, and put the due date where the customer cannot miss it. A clear, complete invoice leaves the customer fewer excuses to delay. For the price before the job, use our quote template. To work out what a day is worth, try the day rate calculator.