How to write an invoice as a sole trader: what to include

Last checked 19 October 2026

Sending your first invoice is a small milestone. It’s also one of the records HMRC expects you to keep, so it pays to get the format right from the start. This guide walks through what GOV.UK says an invoice needs, how payment terms work, and what to do when something needs correcting.

Invoice or receipt?

GOV.UK’s Invoicing and taking payment from customers guide says an invoice is a bill, and it isn’t the same as a receipt. A receipt is an acknowledgement that someone has paid. An invoice tells the customer how much they need to pay you and when.

The same guide says you need to give an invoice by law if both you and the customer are registered for VAT. Many sole traders send invoices to every customer anyway, because they make it clear what’s owed and give you a record for your books.

What every invoice must include

GOV.UK says your invoice must include:

1. A unique identification number. Most people number invoices in order, for example 001, 002, 003, so none are skipped or repeated.
2. Your name, address and contact information. GOV.UK’s list says “company name”; for sole traders, see the next section.
3. The name and address of the customer you’re invoicing.
4. A clear description of what you’re charging for.
5. The supply date: the date the goods or service were provided.
6. The date of the invoice.
7. The amount or amounts being charged.
8. The VAT amount, if applicable.
9. The total amount owed.

Extra details for sole traders

GOV.UK says that if you’re a sole trader, your invoice must also include:

• your name and any business name you use
• an address where any legal documents can be delivered to you, if you’re using a business name

This matches the wider rule in GOV.UK’s Become a sole trader guide, which says your name, and business name if you have one, must go on official paperwork such as invoices and letters.

Limited companies have different rules, such as showing the full company name as it appears on the certificate of incorporation. Our guide to sole trader or limited company covers the wider differences.

A simple invoice layout

There’s no official template, but a layout that covers GOV.UK’s list could look like this. The details below are made up for illustration.

Adding your payment terms and bank details to the invoice isn’t on GOV.UK’s must-include list, but it makes it clear to the customer when and how to pay.

VAT invoices

If you’re registered for VAT, different rules apply. GOV.UK says you must use VAT invoices if you and your customer are both VAT registered, and that these include more information than non-VAT invoices.

GOV.UK’s Charge, reclaim and record VAT guide says only VAT-registered businesses can issue VAT invoices. If you’re VAT registered, it says you must:

• issue valid invoices
• keep copies of all the sales invoices you issue, even if you cancel them or produce one by mistake
• keep all purchase invoices for items you buy

It points to HMRC’s record keeping for VAT notice for exactly what a valid VAT invoice must show. If you’re not VAT registered, don’t add VAT to your invoices. Our guide to VAT registration explains the threshold and how registering works.

Payment terms

GOV.UK says you can set your own payment terms, such as discounts for early payment or payment upfront. Unless you agree a payment date, it says the customer must pay you within 30 days of getting your invoice or the goods or service.

Common ways sole traders word their terms include “payment due within 14 days of the invoice date” or “payment due on completion”. Whatever you choose, agreeing it before you start the work, and repeating it on the invoice, helps avoid confusion later.

GOV.UK also says you have the right to charge interest for late payment from another business, though you can choose not to. Our guide to clients who pay late explains how statutory interest and the fixed recovery sums work.

Correcting an invoice

Mistakes happen. GOV.UK’s VAT guidance explains how VAT-registered businesses settle a balance when goods are returned: by issuing a replacement invoice or a credit or debit note, recording it in your accounts and keeping any original notes. It says a credit or debit note must include the same information as the VAT invoice, the reason it was issued, the total amount credited excluding VAT, and the number and date of the original VAT invoice.

If you’re not VAT registered, GOV.UK’s invoicing guide doesn’t set out a correction method. Many businesses use the same approach: leave the original in place, and issue a credit note or a new invoice that refers back to it, so your numbering and records stay complete.

Card payments and chargebacks

If you take card payments, GOV.UK explains chargebacks. A customer can ask their card issuer to reverse a transaction and reclaim the money from you, for example if an item never arrived, wasn’t as described, or the card was used fraudulently. GOV.UK says you can be charged up to 120 days after the transaction was debited, or from when the goods or services were due to be received.

Keep copies of every invoice

GOV.UK’s Business records if you’re self-employed guide lists sales invoices as one of the types of proof you should keep. It says you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. Our guide to keeping business records covers the rest of what to keep.

If you’ll need to use Making Tax Digital for Income Tax, your income will also need recording as digital records in compatible software. Some invoicing tools can feed your records into MTD software, so it’s worth checking that when you choose one. Our guide to bookkeeping software for new sole traders explains what to look for.

Frequently asked questions

Do I have to send an invoice?

GOV.UK says you need to give an invoice by law if both you and the customer are registered for VAT. Even when it isn’t required, an invoice gives you and the customer a clear record.

Can I write invoices by hand?

GOV.UK’s list sets out what an invoice must include, not how it’s produced. If you’ll be using Making Tax Digital for Income Tax, your income will need recording in compatible software, so check how your invoices will get into your records.

Can I add VAT if I’m not VAT registered?

GOV.UK says only VAT-registered businesses can issue VAT invoices. Check the VAT registration rules or speak to an accountant if you’re unsure.

How long should payment terms be?

It’s up to you and your customer. GOV.UK says that unless you agree a date, the customer must pay within 30 days of getting your invoice or the goods or service.

Should I show my home address on invoices?

GOV.UK says that if you use a business name, your invoice must include an address where legal documents can be delivered to you. It doesn’t say it has to be your home address.

Sources

All checked on 19 October 2026.

• Invoicing and taking payment from customers (GOV.UK)
• Become a sole trader (GOV.UK)
• Charge, reclaim and record VAT (GOV.UK)
• Business records if you’re self-employed (GOV.UK)