Invoicing Essentials: How to Create and Send Professional Invoices in the UK

A professional invoice does more than just ask for payment—it reflects your brand's professionalism, helps you maintain accurate financial records, and is a legally binding document. Getting it right is crucial for getting paid on time and staying compliant.

What Every UK Invoice Must Include

To be legally compliant, especially if you are a limited company or VAT registered, your invoice must contain specific information:

• Your Business Identity: Your official business name and address. If you're a limited company, you must include the full company name as it appears on your certificate of incorporation.
• Unique Invoice Number: A sequential number to uniquely identify each invoice. This is essential for record-keeping.
• Dates: The date the invoice was created (supply date) and the date the payment is due.
• Customer Details: The name and address of the customer you are invoicing.
• Clear Description: A detailed breakdown of the goods or services provided, including quantities and the price for each item.
• Financial Totals: The total amount due, with a clear subtotal before VAT and the amount of VAT added (if you're VAT registered).
• Payment Information: Your bank account number and sort code, along with instructions on how to pay.

Tips to Get Paid Faster

• Set Clear Payment Terms: Don't just put a due date. State your terms clearly (e.g., "Payment due within 14 days"). Standard terms are often 14 or 30 days.
• Offer Multiple Payment Options: Make it easy for clients to pay. As well as bank transfer, consider services like Stripe or GoCardless to allow card payments or Direct Debits.
• Send Polite Reminders: Use accounting software to automate reminders. A friendly email a few days before the due date and another on the day it becomes overdue can work wonders.
• Consider Early Payment Discounts: Offering a small discount (e.g., 2% off) for paying within 10 days can incentivise prompt payment and improve your cash flow.

Know Your Rights: In the UK, you have a statutory right to claim interest and debt recovery costs if another business is late paying you. Familiarise yourself with the Late Payment of Commercial Debts (Interest) Act 1998.