UK invoice generator

UK VAT Invoice FAQ

What does HMRC require on a UK VAT invoice?

Per HMRC's VAT Notice 700/21, a full VAT invoice must include: (1) unique invoice number, (2) your business name, address, and VAT registration number, (3) customer name and address, (4) issue date and tax point (date of supply), (5) description of each item with quantity and unit price exclusive of VAT, (6) VAT rate per item (20% standard, 5% reduced, 0% zero-rated, or exempt), (7) total exclusive of VAT, (8) total VAT charged, in sterling, and (9) the rate of any cash discount offered. Issueable has a place for each of these. Put the tax point in the notes when it differs from the issue date, and any early-payment discount in the payment terms. If you invoice in another currency, add the VAT total in sterling to the notes.

Do I need to be VAT-registered to use this?

No. Most UK sole traders below the £90,000 (2024-25 threshold) VAT registration threshold operate without charging VAT. Issueable supports both: leave VAT rate at 0% for non-registered businesses (with a notes-section disclaimer per your trading style), or set the appropriate rate (20% for most goods/services) once registered. Once registered, every invoice for taxable supplies must be a VAT invoice.

What's the difference between a VAT invoice, simplified VAT invoice, and modified VAT invoice?

Full VAT invoice: shows every field HMRC lists and works for a sale of any size. Simplified VAT invoice: allowed when the supply is £250 or less including VAT; fewer fields required (no customer details). Modified VAT invoice: an option for supplies over £250 when the customer asks for a VAT invoice; it shows VAT-inclusive amounts. Most freelancers and B2B service providers issue full VAT invoices on every sale; that's what Issueable produces.

How do I show VAT correctly on the invoice?

Itemize: each line shows quantity, description, unit price (ex VAT), and line total (ex VAT). Then a summary section shows total ex VAT, VAT amount, and total inc VAT. A mixed-rate invoice (some items 20%, some zero-rated) has to show the VAT rate for each item. Issueable applies one VAT rate to the whole invoice, so bill items at different rates on separate invoices; most service businesses charge a single rate anyway.

What about reverse charge VAT for B2B EU/international sales?

Post-Brexit, UK businesses selling B2B to EU customers typically don't charge UK VAT (reverse charge applies; the buyer self-accounts in their country). Leave VAT at 0% and put "Reverse charge: customer to account for VAT to HMRC / [country] revenue authority" in the invoice notes. For B2C EU sales, distance-selling rules apply (you may need to register in the buyer's country or use the OSS scheme). For US/non-EU, no UK VAT typically applies.

Does Making Tax Digital (MTD) affect what I put on invoices?

MTD requires VAT-registered businesses to keep digital records and submit VAT returns through compatible software (Xero, QuickBooks, FreeAgent, etc.). MTD doesn't change what goes on the invoice itself; it changes how you store and submit the data. Issueable produces invoice PDFs you can upload to or import from MTD-compliant accounting software.

What about Making Tax Digital for Income Tax (MTD ITSA)?

MTD ITSA applies to sole traders and landlords with income over £50,000 from April 2026, then £30,000 from April 2027. Quarterly digital submissions to HMRC required. The invoice still follows VAT invoice rules; the difference is income reporting cadence. Pair Issueable with FreeAgent, Xero, or QuickBooks for MTD ITSA compliance: Issueable produces the documents, accounting software handles the submissions.

Should I use GBP or another currency?

GBP for UK domestic sales. For international sales, you can invoice in any currency you've agreed with the customer, but for VAT-registered businesses HMRC requires the VAT amount to be shown in GBP (or with the GBP equivalent stated). Issueable lets you pick from 15 common currencies; for cross-border invoices, state the exchange rate and date in the notes section so the customer can reconcile.