You’ve set up your business and sold goods or services to clients and customers, which means you need to send them an invoice. But how do you write an invoice?
Even if you’ve been running your business for a while, you might be wondering whether there’s more information you should include when you draft your invoices.
Below you'll find a pack of four invoice templates that you can use to create your own professional invoices. Our template pack includes editable invoice templates for limited companies and sole traders – both with and without VAT.
Download your free invoice templates that you can edit yourself. Get instant access in the click of a few buttons.
The first step is to put your invoice together. You can do this yourself using a word processor or Excel, but you could also use one of our free invoice templates above.
There may even be sample templates on your word processor, depending on the program you’re using.
You should use professional fonts and styling that match your brand, then add your logo and colours if possible.
Make sure your customers know it’s an invoice they’re receiving. Just adding the word invoice at the top of your document might make it more likely you’ll be paid on time, as it makes your request for payment stand out from other documents your client might get.
The guidelines on the gov.uk website also state “you must clearly display the word ‘invoice’ on the document.”
Your invoice needs to have a unique identification number. This is for your records, as you should have a reference for all the invoices you’ve raised to make sure you don’t create duplicates.
You can use a sequence of numbers that gradually increases. You could also use letters in front of a number, which might indicate a specific client.
This means both your company’s information and the details of the company you’re invoicing:
Keep in mind that if you’re a limited company and you choose to add the names of your directors on the invoice, you need to add the names of all directors.
These descriptions don’t need to be long, but they should be detailed enough for your customers to know what it is they’re paying for.
After all, if they have no idea what they’re being charged for, they’re more likely to query the invoice – leading to a delay in payment.
Once you’ve added a clear description of each item, you should add in the quantity of each and the price.
You need to add some dates to your invoice. These are:
You could add the supply date to the description of your goods or service, and add the invoice date at the top along with your name, address, and contact details.
As well as including the costs of individual goods or services, you need to put the total amount owed as well.
Plus, if you’ve agreed a discount with your customer, note this down on the invoice and subtract it from the total cost.
If applicable, include the VAT amount too.
You should have agreed payment terms with the customer beforehand, but it’s a good idea to note the terms of payment on the invoice as well.
So if you expect to be paid within a certain number of days, remind the customer by including it on the invoice.
More importantly, note down how exactly your customer should make the payment. It’s likely you’ll want the customer to make the payment directly to a bank account. If that’s the case, be sure to add your bank details.
If you’re looking for a bank, here are the best business bank accounts as voted for by businesses themselves.
Gov.uk says that you should use VAT invoices if you’re VAT registered. These invoices need more information on them than normal invoices.
There are different types of VAT invoices you can issue – a full invoice, a modified invoice for retail supplies over £250, and a simplified invoice for supplies under £250.
The information you need to include depends on the type of VAT invoice you’re issuing. There’s a handy table on the gov.uk website that lets you know what information you should add depending on the invoice.
In general, though, they need the same information as normal invoices, plus:
Above, we've provided a selection of free downloadable invoice templates that you can edit yourself. You can use these to take the stress out of creating your own invoices from scratch.
If you want to know how to make an invoice yourself, you can also have a look at our list of the best invoice apps for even more invoice template options.
Plus, some digital-first and mobile-only banks can even create and chase invoices for you, taking the hassle out of record keeping. Have a look at the best business challenger banks.
How are you getting on with creating your invoices? Let us know in the comments below.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
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