What must a UK invoice include?
HMRC sets out the required information for a valid VAT invoice. If you are VAT registered, missing any of these fields can prevent your customer from reclaiming their VAT, so it is important to get it right.
- A unique, sequential invoice number
- Your business name and address
- Your VAT registration number (if VAT registered)
- The invoice date
- The tax point (date of supply, if different from the invoice date)
- Your customer's name and address
- A description of the goods or services supplied
- The quantity and unit price for each item
- The VAT rate applied to each item
- The total VAT amount in pounds sterling
- The total amount due including VAT
UK VAT rates explained
There are four VAT treatments in the UK. This generator supports all of them on individual line items, so a single invoice can include items at different rates.
20%
Standard rate
Applies to most goods and services: professional services, construction, vehicle hire, software, electronics.
5%
Reduced rate
Domestic energy, children's car seats, mobility aids, home energy-saving materials.
0%
Zero-rated
Most food, children's clothing and footwear, books, newspapers, public transport, new residential buildings.
Exempt
VAT exempt
Insurance, finance, education, health services, land and property (in most cases). No VAT charged; no VAT reclaimed.
How long must you keep invoices?
HMRC requires VAT records, including copies of all invoices you issue and receive, to be kept for at least 6 years. For self-employed individuals, records must be kept for at least 5 years after the 31 January submission deadline for the relevant tax year. For limited companies, HMRC requires business records to be kept for 6 years from the end of the accounting period.
Failing to keep adequate records can result in penalties. HMRC can issue a penalty of up to £3,000 per tax year for inadequate records.
Do I need to register for VAT?
You must register for VAT if your taxable turnover in any rolling 12-month period exceeds the VAT registration threshold. The threshold for 2025/26 is £90,000. Once registered, you must charge VAT on your taxable supplies, submit VAT returns (usually quarterly), and pay any VAT owed to HMRC.
You can also register voluntarily below the threshold if you want to reclaim VAT on your business purchases. This is often worthwhile for businesses whose customers are predominantly VAT-registered businesses who can reclaim the VAT you charge.
Frequently asked questions
What is an HMRC-compliant invoice?
An HMRC-compliant invoice is one that meets the legal requirements set out in VAT Notice 700. For VAT invoices, this means including your VAT number, a unique invoice number, the invoice date, both parties' names and addresses, a description of the supply, the VAT rate and amount, and the total. Non-VAT-registered businesses have fewer requirements but should still include a unique reference number, the date, both parties' details, and a description of the supply.
Do I need a VAT number on my invoice?
You must include your VAT registration number on any invoice if you are VAT registered. The number must be displayed in the format GB followed by 9 digits (for example, GB123456789). If you are not VAT registered, you cannot charge VAT and must not include a VAT number. Including a false VAT number on an invoice is a criminal offence.
What is the difference between a simplified and full VAT invoice?
A simplified VAT invoice can be used for supplies under £250. It requires fewer details: your business name and VAT number, the invoice date, a description of the supply, and the total including VAT. A full VAT invoice is required for supplies over £250 to VAT-registered customers and must include all HMRC-required fields including both parties' addresses, line-by-line VAT amounts, and payment terms.
How long should I keep invoices for HMRC?
HMRC requires you to keep VAT records for at least 6 years. For self-employed individuals, records must be kept for 5 years after the 31 January self-assessment deadline for the relevant year. For limited companies, business records must be kept for 6 years from the end of the accounting period. Digital records kept under Making Tax Digital must be retained for the same periods.
Can I issue invoices in euros or other currencies?
Yes, you can invoice in any currency. However, if you are VAT registered, you must show the VAT amount in pounds sterling (GBP) on the invoice. You should use the HMRC approved exchange rate or the rate from a recognised financial institution on the invoice date. Keep a record of the rate used.