If you work for yourself in the UK and your turnover is under the VAT threshold, you still need a proper invoice to get paid. The good news is that the rules for a non-VAT invoice are short. The catch is that a few small mistakes, like calling the document a "VAT invoice" or adding 20% VAT you are not allowed to charge, can cause real problems. This guide covers what GOV.UK says must be on your invoice, what to leave off, and a worked example you can copy.
Quick answer: send a document headed "Invoice", include your own name (and any trading name), a unique invoice number, the dates, a clear description and the total, charge no VAT, and add a one-line note that you are not VAT registered.
Do you need to register for VAT first?
Before you send invoices without VAT, check that you are allowed to. GOV.UK's Register for VAT guidance says you must register if either:
- your total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold)
- you expect your taxable turnover to go over £90,000 in the next 30 days.
Taxable turnover is the total value of everything you sell that is not VAT exempt or outside the scope of VAT. It is a rolling 12-month figure, not your tax year, so check it every month. If you go over the threshold, you have to register within 30 days of the end of the month in which you went over, and your effective date of registration is the first day of the second month after you go over. GOV.UK's own example: if your rolling turnover first passes £90,000 on 15 July, you must register by 30 August and you are registered from 1 September.
Below the threshold, registration is optional. Some sole traders register voluntarily, for example when most of their clients are VAT-registered businesses that can reclaim the VAT. If you are not registered, though, the rest of this guide applies to you.
Can you charge VAT if you are not registered?
No. HMRC's Record keeping (VAT Notice 700/21) states that only VAT-registered businesses can issue VAT invoices. If you are not registered, you have no VAT number, you cannot add VAT to your prices, and you should not title your document "VAT invoice" or "Tax invoice".
This matters for your clients too. A VAT-registered client cannot reclaim VAT from an invoice issued by a business that is not registered, so an unregistered supplier showing a VAT line creates a mess for both of you. Keep it simple: your price is your price, and the invoice total is the amount due.
What a UK sole trader invoice must include
GOV.UK's Invoices: what they must include page lists the items every invoice needs:
- a unique identification number
- your company name, address and contact information
- the company name and address of the customer you are invoicing
- a clear description of what you are charging for
- the date the goods or service were provided (the supply date)
- the date of the invoice
- the amount or amounts being charged
- VAT amount if applicable (for you, it is not)
- the total amount owed.
For sole traders, the same page adds two extra points. Your invoice must also include:
- your name and any business name you use, so "Sam Patel trading as Patel Web Design", not only "Patel Web Design"
- an address where legal documents can be delivered to you, if you use a business name.
Notice what is not on that list. There is no requirement to show your Unique Taxpayer Reference (UTR) or National Insurance number on an invoice, and these are personal tax identifiers, so leave them off. Bank details are not required either, but adding them is the easiest way to get paid quickly.
A unique invoice number
Each invoice needs its own number, and the simplest way to stay safe is a sequence that never repeats, such as INV-0001, INV-0002 and so on. You can restart the sequence by year (2026-001) if that suits you, as long as no two invoices share a number. Our invoice number generator can build a format and the next few numbers for you.
Two dates, not one
The invoice date and the supply date are different things. The invoice date is when you issue it. The supply date is when you did the work or delivered the goods. For a project spread over weeks, you can give the date range or the completion date, but make sure the client can see when the work happened.
What to leave off a non-VAT invoice
Most problems come from copying a template made for VAT-registered businesses. Remove these:
- the words "VAT invoice" or "Tax invoice" in the title
- a VAT registration number field (leave it blank or delete it)
- any VAT line, VAT column or VAT rate, including "VAT 0%" if your template forces one in, because 0% VAT means something specific (zero-rated goods) and is not the same as not being registered
- a "subtotal plus VAT" layout, which suggests VAT is due.
Then add one short line near the total or in the notes, for example: "Not VAT registered. No VAT has been charged." This answers the first question an accounts department will ask and saves a back-and-forth email.
Payment terms and late payment
GOV.UK's payment obligations page says you can set your own payment terms. Unless you agree a payment date, the customer must pay you within 30 days of getting your invoice or the goods or service. Put your terms on every invoice in plain words, for example "Payment due within 14 days of the invoice date", and show the actual due date so nobody has to work it out. Our invoice due date calculator and payment terms guide help you choose terms that clients accept.
If another business pays late, the law gives you extra rights. According to GOV.UK's late commercial payments guidance, you can charge statutory interest of 8% plus the Bank of England base rate on business-to-business debts (unless your contract sets a different rate), and you can claim a fixed debt recovery sum once per payment:
- up to £999.99 owed: £40
- £1,000 to £9,999.99 owed: £70
- £10,000 or more owed: £100.
GOV.UK says to send a new invoice if you decide to add interest. These rights apply to business clients, not to private individuals. Our UK late payment interest calculator works out the daily interest and the fixed sum for you.
Worked example: a sole trader web designer
Here is an example invoice for a fictional sole trader. The names and figures are made-up example data, so swap in your own.
The invoice details
- Title: Invoice
- Invoice number: PWD-2026-014
- Invoice date: 2 November 2026
- Supply date: 13 October to 30 October 2026
- From: Sam Patel trading as Patel Web Design, 12 Example Street, Leeds LS1 1AA, sam@example.com
- Bill to: Brightside Cafe Ltd, 4 Sample Road, York YO1 2BB
The line items
- Website redesign (5 pages, mobile layout): 1 × £1,200.00 = £1,200.00
- Hosting and domain setup: 1 × £150.00 = £150.00
- Staff training on the new site: 3 hours × £45.00 = £135.00
Total due: £1,485.00
There is no subtotal-plus-VAT layout because no VAT is charged. The total is simply the sum of the lines.
Notes and terms
- "Not VAT registered. No VAT has been charged."
- "Payment due within 14 days, by 16 November 2026."
- "Pay by bank transfer to S Patel, sort code 00-00-00, account 00000000, reference PWD-2026-014."
If Brightside pays late
Say the invoice is 30 days overdue. Because it is between £1,000 and £9,999.99, Sam could claim the £70 fixed sum. For interest, imagine the Bank of England base rate were 4% (check the real rate on the day you calculate). The statutory rate would then be 12%, so the yearly interest on £1,485 would be £178.20, which is about 49p a day, or about £14.65 for 30 days. Sam would send a new invoice for £70 plus the interest. In practice, a polite reminder that mentions these rights is often enough to get paid.
How to make this invoice in InvoiceDesk
You can build the example above for free in our UK invoice generator, with no sign-up. The UK version starts set up for VAT-registered businesses, so change three things:
- In the Document title field, type "Invoice" so the heading no longer says "VAT Invoice".
- Leave the VAT reg. no. field empty.
- Under Tax, discount and totals, click the ✕ next to the VAT tax line to remove it, so no VAT row appears on the invoice.
Then fill in Your business with your own name and trading name, add your client, enter the line items, and put the "Not VAT registered" line and your bank details in Notes and Payment details. Use Save as profile so your details are filled in next time, then download the PDF. If you prefer starting from a layout, the freelancer invoice template works well for service businesses.
Keep copies of every invoice
As a sole trader you report income through Self Assessment, and your invoices are part of your business records. GOV.UK's business records guidance says you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. For example, records for the 2025 to 2026 tax year, with a return due by 31 January 2027, must be kept until at least the end of January 2032. Our guide on how long to keep invoices covers other countries too.
When you do become VAT registered
Once you register, your invoices change. From your effective date of registration you must issue VAT invoices to VAT-registered customers, with your VAT number, the VAT rate and the VAT amount on each one. GOV.UK says you must pay HMRC any VAT you owe from the date they register you, so if registration is backdated, talk to your clients early about any invoices already issued. Our UK VAT invoice requirements guide lists every field a full VAT invoice needs.
FAQ
Do I have to send an invoice as a sole trader?
GOV.UK says an invoice is required by law when both you and your customer are VAT registered. If you are not registered, there is no such legal duty, but you still need records of your income for Self Assessment, and most business clients will not pay without one. In practice, send an invoice for every job.
Can I just call it a "bill" or a "receipt"?
You can call it "Invoice" or "Bill", but not "VAT invoice" or "Tax invoice". A receipt is different: GOV.UK describes it as an acknowledgement of payment, so send the invoice first and a receipt after you have been paid if the client wants one.
Should I put "VAT 0%" on my invoice?
No. A 0% VAT line suggests your work is zero-rated, which is a VAT category for registered businesses. If you are not registered, remove the VAT line completely and add a note that you are not VAT registered.
Do I need a business bank account to invoice?
The invoicing rules on GOV.UK do not require one. Many sole traders use a separate account anyway because it makes bookkeeping and Self Assessment easier.
My client is VAT registered. Can they still pay my non-VAT invoice?
Yes. They simply pay the total and cannot reclaim any VAT on it, because none was charged. Your non-VAT invoice is still a valid record for their books.
What if I passed the £90,000 threshold without noticing?
Register as soon as possible. GOV.UK says you must pay HMRC any VAT you owe from the date they register you, so the earlier you act, the smaller the problem. Check your rolling 12-month turnover every month to avoid this.