If you’re self-employed, creating and sending out invoices to your customers and clients is a regular and essential task. Your invoices form part of your business records too, and must contain specific pieces of information.
In this guide, we’ll explain what you need to include in your invoice, how VAT affects the wording, and you can download our free Word and Google Drive invoice templates.
What must a sole trader invoice include?
HMRC doesn’t specify an exact layout, but your invoice must meet the legal requirements for the self-employed. These include:
- Your name (or business name) and trading address
- The client’s name and address
- A unique invoice number
- The invoice date and supply date (if different)
- A clear description of the goods or services provided
- The total amount charged
- VAT details if you’re registered (see below)
See the full list of official requirements on GOV.UK – Invoicing rules.
Example: Non-VAT invoice layout (for most sole traders)
Item: Logo design Description: Custom logo for client’s brand Amount: £250.00 Item: Business card design Description: Double-sided print-ready design Amount: £100.00 Item: Social media graphics Description: 3 x branded image templates Amount: £150.00 TOTAL AMOUNT DUE: £500.00
Include a line confirming your payment terms and your bank details, such as:
- Account name
- Sort code
- Account number
Optional: You may want to add a space for “Client reference” or “PO number” if your customer requests one.
Example: VAT invoice layout
Item: IT systems audit Description: Full audit of IT infrastructure Net: £800.00 VAT (20%): £160.00 Total: £960.00 Item: On-site consultation Description: 1 day at client site Net: £600.00 VAT (20%): £120.00 Total: £720.00 Item: Follow-up support Description: Remote troubleshooting (3 hours) Net: £180.00 VAT (20%): £36.00 Total: £216.00 Subtotal: £1,580.00 VAT (20%): £316.00 TOTAL AMOUNT DUE: £1,896.00
Also include your VAT number, invoice date, and payment instructions.
Download free invoice templates for sole traders
You can download ready-to-use Word and Google Docs templates here:
Non-VAT invoice template
VAT invoice template
Each template includes a clean layout with space for your name, client details, invoice number, itemised services, totals, and payment terms. The footer says “Downloaded from ByteStart.co.uk” – feel free to remove or personalise it.
You can also add your logo to the top (and/or bottom) if you like.
Please note that these templates are intended for the self-employed. If you trade through a limited company, you must include additional information (see below).
Do sole traders need to issue invoices?
Yes. Even if you’re not VAT registered, issuing invoices is a normal and necessary part of running a business. It helps you:
- Keep track of what you’ve done and what you’re owed
- Create a paper trail in case a client queries a charge
- Stay organised for Self Assessment or Making Tax Digital
- Demonstrate professionalism when dealing with new customers
If you don’t issue proper invoices, you’re more likely to run into late payments, disputes, or missing records at tax time.
How to number your invoices
There’s no required format, but each invoice must have a unique and sequential number.
Select a system that aligns with your business needs. For example:
- INV001, INV002, INV003…
- 2025-001, 2025-002 (year-based)
- Or include a project or client code, such as JONES01, SMITH02, etc.
Just make sure your numbers don’t jump or repeat – that could raise red flags during an HMRC check.
Getting paid faster: small changes that make a big difference
Late payments are a huge issue for sole traders and small businesses.
You can improve your chances of being paid promptly by:
- Sending your invoice as soon as work is complete
- Setting clear payment terms (e.g. 7 or 14 days)
- Including your bank details in the right place
- Adding a polite line such as “Please use the invoice number as the payment reference”
- Following up quickly if payment is late
Should you use software to create invoices?
You can create invoices using Word, Excel, or Google Docs – and many sole traders still do. That’s why we’ve created free templates you can download and customise.
However, one of the most effective ways to manage invoicing is to use business accounting software. Most tools let you:
- Create professional invoices with your branding
- Automatically generate invoice numbers
- Track whether an invoice has been opened or paid
- Connect your invoicing to your bookkeeping and tax records
- Avoid errors or duplicate data
If you’re new to this, start with our guide to the best accounting software for sole traders. You’ll also find a detailed comparison of whether to use accounting software or stick with spreadsheets, to help you decide what suits your business best.
How is invoicing different for limited companies?
This guide is written for sole traders. If you run a limited company, your invoices need to include:
- The full registered company name
- Your company registration number
- The registered office address
- Any VAT registration details (if applicable)
We’ll be publishing a separate guide and templates for limited company invoicing shortly.
FAQs
Can I use a business name on my invoice if I’m a sole trader?
Yes – but you must also include your name somewhere on the invoice. You can trade as “Jane’s Web Design” but still need to identify yourself legally as a sole trader.
Do I need to charge VAT?
Only if you are VAT registered. If you’re under the £90,000 VAT threshold and haven’t registered voluntarily, you must not include VAT on your invoices.
Can I include a PO number or client reference?
Yes. This is often requested by clients, especially larger businesses. Add it near the top of the invoice alongside the invoice date and number.
Do I need to keep copies of all my invoices?
Yes. HMRC requires sole traders to keep proper financial records – including all invoices sent and received – for at least five years after the 31 January filing deadline of the relevant tax year.
Can I email invoices, or do they have to be printed?
Emailing invoices as PDFs or Word documents is perfectly fine and widely accepted. There’s no requirement to print and post them unless a client explicitly requests it.
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