How to invoice properly in the UK
A VAT invoice has to carry certain things by law. Miss them and your customer's accountant can refuse to reclaim the VAT, which is usually when it comes back to you.
- A unique, sequential invoice number. No gaps, no reusing numbers.
- Your business name, address and VAT number if you are registered.
- The customer's name and address.
- The invoice date, and the supply date if it differs.
- A description of the work, the quantity and the price for each item.
- The rate of VAT and the amount charged, plus the total excluding VAT.
Source: gov.uk, invoices and what they must include.
When to use the domestic reverse charge
If you are a subcontractor doing construction work for another VAT-registered contractor who is not the end user, you usually do not charge VAT. You state on the invoice that the domestic reverse charge applies and that the customer accounts for the VAT. Pick that option above and the wording is added for you.
Source: gov.uk, VAT domestic reverse charge for building and construction services.
Common questions
Do I need to be VAT registered to invoice?
No. If you are not registered you simply do not charge VAT and you must not show a VAT number or a VAT amount. Choose "Not VAT registered" above and it is left off.
What invoice number should I start at?
Anything, as long as it is unique and you never go backwards. INV-0001 is fine. What matters to HMRC is that the sequence has no gaps you cannot explain.
How long do I have to keep a copy?
Six years for VAT records. Keeping them somewhere that is not a shoebox is the hard part, which is rather the point of the thing below.
Is anything sent to you?
No. This runs entirely in your browser, the PDF is generated on your machine, and your business details are saved only in your own browser so you do not retype them next time.