Whether you're a graphic designer, consultant, plumber, or writer, getting invoicing right is crucial for your freelance business. A proper invoice isn't just a payment request—it's a legal document that protects both you and your clients.

In this guide, you'll learn exactly what UK freelancers need to include on invoices, when to charge VAT, and how to avoid common mistakes that delay payments.

What UK Law Requires on Your Invoices

Unlike some countries, the UK doesn't mandate a specific invoice format. However, HMRC requires certain information for tax purposes:

Required Elements:

Your business name and contact details
Client's name and address
Unique invoice number (sequential)
Invoice date
Description of goods/services provided
Date goods/services were provided
Total amount due
Payment terms (e.g., "Payment due within 14 days")

If VAT Registered:

Your VAT registration number
VAT rate applied
VAT amount
Total excluding VAT
Total including VAT

Sole Trader vs Limited Company Invoices

Sole Traders

Use your trading name or personal name
Include your address
No company number required
UTR (Unique Taxpayer Reference) optional but recommended

Limited Companies

Registered company name (exactly as on Companies House)
Company registration number
Registered office address
VAT number (if registered)

VAT: Do You Need to Charge It?

The current VAT registration threshold (2025/26) is £90,000 in taxable turnover over 12 months.

Below threshold: You don't charge VAT and don't need to register.

Above threshold: You must register and charge VAT (usually 20%).

Voluntary registration: Some freelancers register early to reclaim VAT on expenses. Consider this if you have significant business purchases.

How to Number Your Invoices

HMRC requires sequential, unique invoice numbers. Good systems:

Simple: INV001, INV002, INV003...
Date-based: 2026-001, 2026-002...
Client-based: ABC-001, ABC-002 (per client)

Don't: Skip numbers, reuse numbers, or use random numbers.

Payment Terms That Get You Paid Faster

Research shows specific due dates get paid faster than vague terms:

❌ "Payment due upon receipt" (unclear) ❌ "Net 30" (feels like a suggestion) ✅ "Payment due by 15th February 2026" (specific = action)

The sweet spot for UK freelancers is 14 days - long enough to be reasonable, short enough to maintain cash flow.

Late Payment Rights (UK Law)

Under the Late Payment of Commercial Debts Act, you can charge:

Interest: 8% + Bank of England base rate
Fixed compensation:
- £40 for debts up to £999.99
- £70 for debts £1,000-£9,999.99
- £100 for debts £10,000+

Include this in your terms: "Late payments subject to statutory interest and compensation."

Common Invoice Mistakes to Avoid

Vague descriptions - "Consulting work" vs "Brand strategy workshop (3 hours) + follow-up document"
Missing payment details - Always include bank details or payment link
No due date - Never send an invoice without a specific due date
Wrong client details - Verify company name and address (especially for limited companies)
Forgetting to save copies - Keep records for 6 years (HMRC requirement)

Free UK Invoice Template

Stop formatting invoices in Word. Use a free invoice generator built for UK freelancers:

→ Create Your Free Invoice

No signup required
UK VAT calculation built-in
Professional PDF export
40+ industry templates

Checklist: Before You Send

☑️ Correct client name and address ☑️ Unique sequential invoice number
☑️ Clear description of work done ☑️ Dates work was completed ☑️ Specific payment due date ☑️ Your bank details or payment link ☑️ VAT breakdown (if registered) ☑️ Your business contact details

Summary

Proper invoicing is the foundation of getting paid on time as a UK freelancer. Include all required information, use specific payment terms, and know your late payment rights.

The fastest way to create compliant invoices? Try our free UK invoice generator - no signup needed.

Last updated: February 2026

How to Invoice as a Freelancer in the UK: Complete 2026 Guide