If you are a freelancer or a service provider in the UK and you offer services to clients based in the UK, ensuring your invoices comply with UK standards is crucial for getting paid on time. In this blog, we will guide you through the steps of creating a UK invoice online for free that is fully compliant with UK regulations. We’ll detail the necessary information to include, highlight the differences between UK invoices and those from the US or other regions, and introduce tools that help you send unlimited invoices at no cost. Let’s get started!
Table of Contents:
Brief Introduction to Invoices in the UK:
In the UK, an invoice is more than just a bill—it’s formal documentation of a transaction between a freelancer or a business and their customer. An invoice is essential because it outlines what products or services were provided, their costs, and when payment is due.
For businesses and freelancers, issuing invoices is standard practice when requesting payment from clients. It ensures accurate financial record-keeping and helps prevent misunderstandings about the nature and costs of services rendered. Invoices must adhere to specific guidelines to be legally valid in the UK. They should include details such as the seller’s and buyer’s information, a unique invoice number, and a breakdown of charges. Additional information regarding VAT-registered sellers is also required to comply with tax regulations.
What Does a UK Invoice Need to Contain?
According to gov.uk, the key elements of a UK Invoice should include the following:
1. Invoice Title and Number: Clearly label the document as an ‘Invoice’ and assign it a unique identification number for tracking purposes.
2. Service Provider’s Information: Include your business name, address, and contact details.
3. Client’s Information: Include the client’s name, address, and contact details.
4. Invoice Date: Include the date of when the invoice is issued.
5. Due Date: Specify the date by which payment should be made.
6. Description of Goods or Services: Provide a clear and detailed description of what was provided. This helps both parties understand what is being invoiced.
7. Quantity and Unit Price: Outline the quantity of each item or service provided and its individual cost.
8. Total Amount Due: Sum up all charges and clearly state the total amount payable.
9. VAT Details: If applicable, include the following VAT-related information:
- VAT Registration Number: Include your VAT registration number if your business is registered for VAT.
- VAT Rate: Specify the rate of VAT charged on each item or service.
- VAT Amount: Calculate and display the VAT amount charged for each line item and the total VAT amount for the invoice.
In the UK, businesses and freelancers are required to register for VAT when their taxable turnover surpasses a specified threshold. This threshold is determined by the total value of all taxable goods and services you supply within a 12-month period. As of July 2024, businesses with a taxable turnover exceeding £85,000 within any 12-month period are required toregister for VAT with HM Revenue and Customs (HMRC).
10. Payment Terms: Outline the terms under which payment should be made, including accepted payment methods.
How to send an Invoice in the UK?
Now that you know the essential information required on a UK invoice, let’s explore how you can create and send one. You can use either Google Docs or Google Sheets or take advantage of free invoicing tools that can help you create compliant invoices in just minutes.
- For a detailed guide on Creating Invoices with Google Docs, click here.
- For a detailed guide on Creating Invoices with Google Sheets, click here.
Now, let’s go through the steps to create an invoice using CheckYa, a tool that allows you to generate and send invoices in under two minutes, helping you get paid up to three times faster. CheckYa simplifies the invoice creation process with a predefined format that includes all the invoice details. Here’s how you can create an invoice using CheckYa in just two minutes:
- Sign Up: Go to www.checkya.com and sign up for an account.
- Create Invoice: Click on the “Invoices” tab and select “Create Invoice.”
- Fill in Details: Enter the required information, such as your company details, client details, line items, service descriptions, dates, amounts, and VAT if applicable.
- Send Invoice: Once all details are filled in, hit “Send.”
Why choose CheckYa?
- CheckYa generates a unique invoice number for each new invoice that allows you to list line items clearly and supports billing by hour or quantity.
- Additionally, you can send automated reminders before due dates, choose GBP currency, and send invoices in GBP even if you’re offering from outside of the
- CheckYa also integrates with Stripe and PayPal, enabling direct invoice payments.
- CheckYa lets you send automated reminders two days before the due dates, cutting the manual follow-up process.
- You can also track all your paid, unpaid and overdue invoices in one place.
Conclusion
Creating and sending UK invoices can be simple with the proper knowledge and tools. Ensure your invoices include all necessary details like identification numbers, company and client info, service descriptions, dates, amounts, and VAT. Use tools like Google Docs, Google Sheets, or CheckYa for quick and professional invoices. CheckYa, in particular, offers features like automated reminders and payment integration to speed up payments. These steps ensure your invoices are compliant and help you get paid on time.
