Free invoice generator

Every UK invoice

gov.uk lists what an invoice must include:

• a unique invoice number
• your business name, address and contact details
• the name and address of the customer you are invoicing
• a clear description of what you are charging for
• the date the work was done (the supply date) and the date of the invoice
• the amounts charged, any VAT, and the total owed

Sole traders using a business name must also show their own name and an address where legal documents can be delivered. Limited companies must use the full name on their certificate of incorporation.

VAT invoices

If you and your customer are both VAT registered, you must issue a VAT invoice. On top of the above it shows your VAT number, the VAT rate for each line, the total before VAT and the total VAT in pounds (VAT Notice 700, section 16.3). Billsmith rounds the VAT total down to the whole penny, which HMRC allows for invoices (section 17.5).

CIS deductions

If you are a subcontractor under the Construction Industry Scheme, your contractor takes 20% (or 30% if you are not registered) from the labour and expenses on your invoice before paying you. Materials and VAT are not included.

The construction reverse charge

When a VAT registered subcontractor does CIS work for a VAT and CIS registered business, the customer pays the VAT to HMRC instead of to you. Your invoice charges no VAT, states the VAT your customer must account for, and carries wording such as "Reverse charge: Customer to pay the VAT to HMRC". It does not apply to work for householders or for businesses that have told you in writing they are the end user.

US invoices

There is no federal rule for what an invoice must show, but clear invoices get paid faster. Include an invoice number, the date, your business name and contact details, the client's name, a description of each job with quantities and prices, any sales tax, the total, and when and how to pay.

When you should be paid

In the UK, unless you agree a payment date, gov.uk says the customer must pay within 30 days of getting your invoice or the work. Put your terms on every invoice so there is no doubt.