As a sole trader in the UK, creating proper invoices is essential for getting paid and staying compliant with HMRC regulations. Whether you're just starting out or looking to improve your invoicing process, this guide covers everything you need to know.

What is a Sole Trader Invoice?

A sole trader invoice is a document you send to clients requesting payment for goods or services. It's both a legal document and a business record that you'll need for your tax return.

Unlike VAT-registered companies, sole traders under the VAT threshold (£90,000 as of 2026) don't need to charge VAT, making invoicing simpler.

What Must Be Included on a Sole Trader Invoice?

UK law requires certain information on all invoices. Here's what you must include:

Required Information:

✅ Your full name (as shown on your Self Assessment)
✅ Your business address
✅ Invoice number (must be unique and sequential)
✅ Invoice date
✅ Client's name and address
✅ Description of goods/services
✅ Amount charged (including any VAT if registered)
✅ Payment terms (when payment is due)

If you're VAT registered, you must also include your VAT number and the amount of VAT charged separately.

Step-by-Step: Creating Your First Invoice

1. Choose Your Invoice Format

You have three main options:

Word/Excel templates - Free but time-consuming and prone to errors
Manual invoice books - Old-school but no digital backup
Invoicing software - Professional, automated, and saves hours

2. Set Up Your Invoice Numbering System

HMRC requires sequential invoice numbers. A common format is: INV-000001, INV-000002, etc. Never skip numbers or reuse old invoice numbers—this could trigger tax investigations.

3. Add Your Business Details

Include your full legal name (not a trading name unless registered) and your business address. This is the address shown on your Self Assessment tax return.

4. Describe Your Work Clearly

Be specific about what you're charging for. Instead of "Services rendered", write "Website design - Homepage redesign (40 hours @ £50/hour)". Clear descriptions prevent payment disputes.

5. Set Payment Terms

Common payment terms for sole traders are 14 or 30 days. Be clear: "Payment due within 14 days" or "Payment due by [specific date]". The Late Payment of Commercial Debts Act gives you the right to charge interest on late payments.

Common Sole Trader Invoicing Mistakes

Avoid These Errors:

❌ Using a trading name without registering it - Must invoice in your legal name
❌ Missing invoice numbers - Required by HMRC and looks unprofessional
❌ Unclear payment terms - Makes it harder to chase late payments
❌ Not keeping copies - You must keep invoices for at least 5 years
❌ Forgetting to follow up - Send reminders before and after the due date

Do I Need to Register as VAT as a Sole Trader?

You must register for VAT if your turnover exceeds £90,000 in a 12-month period (2026 threshold). You can also register voluntarily if you're under the threshold.

VAT-registered invoices must include:

• Your VAT registration number
• The amount of VAT charged (usually 20%)
• The total amount including VAT
• The words "Tax Invoice" or "VAT Invoice"

Getting Paid Faster: Pro Tips

📧 Send invoices immediately - Don't wait until month-end
💳 Offer multiple payment methods - Bank transfer, card, PayPal
🔔 Set up automatic reminders - Email a few days before due date
📄 Make payment easy - Include bank details prominently
⚡ Invoice electronically - Email is faster than post

How Long Should I Keep Invoices?

HMRC requires sole traders to keep all business records, including invoices, for at least 5 years after the 31 January submission deadline of the relevant tax year. Digital copies are acceptable and often safer than paper.

The Modern Solution: Invoicing Software

While manual invoicing works, professional invoicing software saves hours and reduces errors. Benefits include:

✨ Automatic numbering - Never duplicate or skip invoice numbers
✨ Professional templates - Branded PDFs that look trustworthy
✨ Email integration - Send invoices directly to clients
✨ Payment tracking - See which invoices are overdue at a glance
✨ Automatic reminders - Get paid faster without awkward phone calls
✨ Digital storage - All invoices backed up and searchable

Try Experi - Built for UK Sole Traders

Create professional invoices in under 60 seconds. No accounting complexity, just beautiful invoices that get you paid.

✓ Free plan: 1 invoice/month
✓ Automatic invoice numbering
✓ Send via email with PDF attachment
✓ Payment reminders for overdue invoices
✓ 5-year digital storage included

Start Free - No Credit Card Required

Frequently Asked Questions

Can I invoice before I'm paid?

Yes! You invoice when work is complete (or according to your payment terms), not when you receive payment. The invoice is your request for payment.

What if a client doesn't pay?

First, send polite reminders. After 30 days overdue, you can charge statutory interest under the Late Payment of Commercial Debts Act (currently 8% plus Bank of England base rate). For larger amounts, consider small claims court.

Do I need different invoices for different clients?

No, but you can customize details like payment terms or descriptions. The format should stay consistent for professionalism.

Can I use a template I found online?

Yes, but make sure it includes all legally required information for UK sole traders. Double-check invoice numbers are sequential and unique.

Summary: Invoice Like a Pro

Professional invoicing is crucial for sole trader success. Include all required information, use clear payment terms, keep proper records, and follow up on late payments.

While you can invoice manually, modern invoicing software like Experi saves time, reduces errors, and helps you get paid faster—leaving more time to focus on growing your business.

How to Invoice as a Sole Trader in the UK