Question 1

What does HMRC require on a UK VAT invoice?

Accepted Answer

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, and (9) total inclusive of VAT. Issueable produces PDFs that include all required fields.

Question 2

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

Accepted Answer

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.

Question 3

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

Accepted Answer

Full VAT invoice: required for B2B and any sale over £250 incl VAT. Simplified VAT invoice: allowed for retail sales under £250; fewer fields required (no customer details). Modified VAT invoice: for retail sales over £250 to consumers, by agreement with HMRC, showing VAT-inclusive amounts. Most freelancers and B2B service providers issue full VAT invoices on every sale; that's what Issueable produces.

Question 4

How do I show VAT correctly on the invoice?

Accepted Answer

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. For mixed-rate invoices (some items 20%, some 0% zero-rated), break the summary into per-rate subtotals. Issueable's two-tax-line support handles split rates if needed; most service businesses charge a single rate.

Question 5

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

Accepted Answer

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). State "Reverse charge: customer to account for VAT to HMRC / [country] revenue authority" on the invoice and leave VAT at 0%. 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.

Question 6

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

Accepted Answer

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.

Question 7

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

Accepted Answer

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.

Question 8

Should I use GBP or another currency?

Accepted Answer

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 set any currency; for cross-border invoices, state the exchange rate and date in the notes section so the customer can reconcile.

UK Invoice Generator

HMRC-Compliant Features

All 9 HMRC Fields

Reverse Charge Support

Multi-Rate VAT

GBP + Multi-Currency

MTD-Friendly PDF

UK VAT Invoice FAQ

What does HMRC require on a UK VAT invoice?

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

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

How do I show VAT correctly on the invoice?

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

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

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

Should I use GBP or another currency?

UK Compliance Without the Software Cost

From Sole Trader to Ltd

Sole Traders

Limited Companies

Cross-Border B2B

VAT-Compliant Invoices for UK Business

UK Invoice Generator

HMRC-Compliant Features

All 9 HMRC Fields

Reverse Charge Support

Multi-Rate VAT

GBP + Multi-Currency

MTD-Friendly PDF

UK VAT Invoice FAQ

What does HMRC require on a UK VAT invoice?

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

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

How do I show VAT correctly on the invoice?

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

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

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

Should I use GBP or another currency?

UK Compliance Without the Software Cost

From Sole Trader to Ltd

Sole Traders

Limited Companies

Cross-Border B2B

Related guides

VAT-Compliant Invoices for UK Business