Limited Company Invoice Template - UK

UK limited companies must include the company name, registered address, company registration number, and VAT registration number (if registered). Your invoice must show the invoice date, unique invoice number, and a clear description of goods or services supplied. The quantity, unit price, and total amount must be listed separately. Your client's name and address should also appear. For sales over £250, include your tax point date. Failing to include these details can result in HMRC penalties, so ensure your template covers all mandatory fields.

If you're VAT-registered, your invoice must clearly separate the net amount, VAT rate (usually 20%), and VAT amount due. Show the VAT rate alongside each applicable item, or if using a single rate, show it at invoice totals. For example, if net is £1,000, multiply by 20% to show £200 VAT separately, totaling £1,200. Include your VAT registration number on the invoice. If you're not VAT-registered, state "No VAT charged" or simply omit VAT. Display errors risk HMRC queries and potential penalties.

Yes, UK limited company invoices must display your Companies House registration number. This 8-digit number identifies your company legally and is essential for compliance. Including it builds client confidence and ensures your invoices meet HMRC standards. The registration number should appear on all invoices alongside your company name and registered address. Never issue an invoice without it—HMRC will consider it incomplete and non-compliant. This is one of the most commonly overlooked requirements for UK limited companies.

Simplified invoices (under £250) require fewer details: just your business name, invoice date, description of items, amount due, and VAT if applicable. Standard invoices (£250 and over) require full details including your company registration number, VAT number, client details, invoice number, quantity, unit price, and separate VAT breakdown. HMRC distinguishes between these to reduce administrative burden for small transactions while maintaining compliance for larger ones. Using your limited company template ensures you're always on the compliant side.

UK tax law requires businesses to keep invoices and records for at least 6 years from the end of the tax year to which they relate. HMRC may request invoices during inspections, so secure storage is essential. Digital copies are acceptable if they're clear and complete; many businesses photograph or scan invoices. Failure to retain proper records can result in significant penalties. Store both customer invoices you've issued and supplier invoices you've received to maintain complete financial records for your limited company.

Common payment terms for UK business invoices include net 30 (payment due within 30 days), net 15, or payment in advance for new clients. Many small businesses use "Net 30" as standard unless there's a prior agreement. Including clear payment terms prevents disputes and sets expectations. Add a line stating "Payment due by [date]" based on your invoice date. For regular clients, you might negotiate longer terms. Always specify your payment methods—bank transfer, credit card, or cheque—so clients know how to pay promptly.

Your limited company template works for most B2B and B2C sales, but certain situations require adjustments. If you issue credit notes or have recurring invoices, add reference fields. If selling to EU clients post-Brexit, include reverse charge notes when applicable. If invoicing from multiple office locations, ensure your registered address is always shown. For sales outside the UK, you may need to adjust VAT treatment. Proforma invoices for quotes require slightly different formatting. Verify each template variation meets your specific business needs and HMRC requirements before using widely.

Common errors include omitting the company registration number, failing to separate VAT clearly, using inconsistent invoice numbering, or including incorrect client details. Some businesses forget to show the VAT registration number or fail to list the tax point date on larger invoices. Others don't keep proper copies or use incorrect invoice dates. Incorrect calculations—especially VAT—frequently trigger HMRC queries. Missing payment terms can cause disputes. Using a compliant template significantly reduces these mistakes, but always double-check details like client names, amounts, and VAT calculations before sending.