How to Invoice When You're Not VAT Registered (UK Guide 2026)

Most UK freelancers, sole traders and small businesses are not VAT registered — and that's completely normal. You only have to register once your taxable turnover crosses the threshold. But it raises a question that worries a lot of new business owners: how do I invoice properly if I'm not VAT registered?

The good news: it's simpler than invoicing with VAT. You just need to get a few things right — and avoid one mistake that can land you in trouble with HMRC.

Do You Need to Be VAT Registered to Invoice?

No. There is no rule that says you must be VAT registered to send an invoice. Anyone running a business — sole trader, freelancer, or limited company — can issue invoices and get paid without ever touching VAT.

You must register for VAT only when your VAT-taxable turnover exceeds the registration threshold (£90,000 in a rolling 12-month period as of the 2024 change — always check the current figure on GOV.UK, as it can be updated). Below that, registration is optional.

Until then, you simply send a normal invoice without any VAT on it.

What a Non-VAT Invoice Must Include

A non-VAT invoice needs all the standard details — just none of the VAT-specific ones. Include:

1. The word "Invoice" clearly on the document
2. Your name / business (trading) name and address
3. Your contact details (email, phone)
4. The customer's name and address
5. A unique, sequential invoice number (see our invoice numbering guide)
6. The invoice date (and supply date if different)
7. A clear description of the goods or services
8. The amount being charged per line and the total
9. Payment terms — when and how to pay, plus your bank details

That's it. Because you're not charging VAT, your total is simply the sum of your line items — no VAT line, no VAT calculation.

What You Must NOT Put on a Non-VAT Invoice

This is the part that actually matters legally. If you are not VAT registered, you must never:

• ❌ Show a VAT registration number (you don't have one)
• ❌ Add a line for "VAT" or "VAT @ 20%"
• ❌ Charge VAT or imply that your price includes VAT
• ❌ Call your document a "VAT invoice"

Charging or showing VAT when you're not registered is a serious matter — HMRC treats wrongly charged VAT as money owed to them. Keep your invoice VAT-free and there's nothing to worry about.

Do You Need to Mention That You're Not VAT Registered?

You don't have to state "not VAT registered" on your invoice — simply omitting all VAT details is enough. However, many businesses add a short line such as:

"No VAT charged — [Business name] is not VAT registered."

This is optional but helpful: it pre-empts questions from clients' accounts teams who might otherwise email you asking where the VAT number is. It's especially useful when invoicing larger companies.

A Free Non-VAT Invoice Template (UK)

INVOICE

Jane Smith Design
12 Mill Lane, Bristol, BS1 2AB
jane@janesmithdesign.co.uk · 07700 900123

To: Acme Ltd, 1 High Street, London, EC1A 1AA

Invoice #2026-014        Date: 14 Jun 2026        Due: 28 Jun 2026

Description                          Qty     Price       Total
----------------------------------------------------------------
Logo design                           1       £450        £450
Brand guidelines document             1       £200        £200
----------------------------------------------------------------
                                          TOTAL DUE:      £650

No VAT charged — Jane Smith Design is not VAT registered.
Payment terms: 14 days. Bank: [name / sort code / account number]

Notice there's no VAT line and no VAT number — the total is just your fees.

Should You Register for VAT Voluntarily?

You can register before hitting the threshold, and sometimes it's worth it:

• Reclaiming input VAT. If you buy a lot of VAT-rated supplies or equipment, registering lets you reclaim that VAT.
• B2B clients. If your customers are VAT-registered businesses, they can reclaim the VAT you charge, so adding VAT doesn't really cost them anything — and being registered can make you look more established.

But there are downsides: more admin, quarterly VAT returns (Making Tax Digital), and if you sell to consumers (B2C), adding 20% VAT effectively makes you 20% more expensive. For most small B2C freelancers, staying unregistered until you must is the right call.

Common Questions

Can I send an invoice as a sole trader who isn't VAT registered? Yes. Invoice under your own name or a trading name, include the standard details above, and leave out anything VAT-related. See our sole trader invoicing guide.

What happens when I cross the VAT threshold? You must register within 30 days of the end of the month you exceeded it, then start showing VAT on invoices and filing returns. Until your registration is confirmed, keep invoicing without VAT.

Can a non-VAT business invoice a VAT-registered company? Absolutely. They simply pay your VAT-free total. They can't reclaim VAT on it (there isn't any), but that's their concern, not yours.

Do I still need sequential invoice numbers if I'm not VAT registered? Yes — unique, sequential numbering is good practice for everyone and makes your records and Self Assessment far easier. See the invoice numbering guide.

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Create clean, professional non-VAT invoices in under a minute with 1nvoic3 — it leaves VAT off automatically until you turn it on. Free, no sign-up. See also VAT invoice requirements (for when you do register) and how to invoice as a sole trader.