How to invoice as a sole trader, step by step

How to invoice as a sole trader: what it must include

GOV.UK's invoicing guidance lists the details every invoice must show. The core of how to invoice as a sole trader is getting each one on the page:

• a unique identification number
• your name, address and contact information
• the name and address of the customer you're invoicing
• a clear description of what you're charging for
• the date the goods or service were provided (the supply date)
• the date of the invoice
• the amount or amounts being charged
• the VAT amount, if applicable
• the total amount owed

Sole traders have two extra rules. You must show your own name and any business name you use. And if you trade under a business name, you must give an address where legal documents can be delivered to you. So if Jo Smith trades as "Bright Windows", the invoice shows both names.

That's how to invoice as a sole trader without VAT. Everything else, like your logo or a thank-you line, is optional.

A sample sole trader invoice

Here's how those rules look on a real page. The business and figures below are made up, for illustration only.

Notice the last two rows. They aren't in the legal list, but they're the part clients read most. A clear due date and payment details are the simplest part of how to invoice as a sole trader and get paid faster.

Numbering and dates

A big part of how to invoice as a sole trader well is staying organised, and numbering is where that starts. GOV.UK asks for a unique number, not a particular format. Many people use a simple running sequence, such as 001, 002, 003, or add the year, such as 2026-001. Whatever you choose, stick with it, never reuse a number, and keep a copy of every invoice you send.

The two dates do different jobs. The supply date says when you did the work. The invoice date starts the clock on payment. Both feed into your records, and if you use traditional accounting rather than cash basis, the invoice date can decide which tax year the income falls in. Our bookkeeping for small business guide explains the difference.

Payment terms: when you get paid

GOV.UK says you can set your own payment terms, such as discounts for early payment or payment upfront. If you don't agree a date, the customer must pay within 30 days of getting your invoice or the goods or service.

For business clients, the late payment rules add some limits. GOV.UK says that if you agree a payment date, it usually needs to be within 60 days for business-to-business deals, or within 30 days for public authorities. You can agree longer than 60 days, but it must be fair to both businesses.

Part of how to invoice as a sole trader is choosing terms that suit your cash flow. A few common approaches:

How to invoice as a sole trader when you're VAT registered

GOV.UK says you must use VAT invoices if both you and your customer are VAT registered. A full VAT invoice needs more detail than the list above. HMRC's VAT Notice 700/21 says it must show:

• a sequential number that uniquely identifies the invoice
• the time of supply, and the date of issue if different
• your name, address and VAT registration number
• the customer's name and address
• a description that identifies the goods or services
• for each item: the quantity, the unit price, the VAT rate and the amount excluding VAT
• the total excluding VAT, any cash discount rate, and the total VAT in sterling

For sales of £250 or less including VAT, HMRC allows a simplified VAT invoice with fewer details. HMRC also says you normally must issue a VAT invoice within 30 days of the supply. Not registered yet? Our guide on when to register for VAT explains the threshold.

When a client pays late: your rights

Knowing how to invoice as a sole trader includes knowing what happens next if a business client doesn't pay. GOV.UK's late commercial payments guidance gives you two rights. You can choose not to use them.

1. 1

   Statutory interest

   You can charge interest at 8% plus the Bank of England base rate on business-to-business debts. You can't claim statutory interest if your contract sets a different rate.

2. 2

   A fixed recovery sum

   On top of interest, you can add a fixed amount once per late payment, set by law and shown below.

3. 3

   Reasonable costs

   GOV.UK says you can also claim reasonable costs each time you try to recover the debt.

These rights cover business customers, so they're worth knowing when you think about how to invoice as a sole trader for company clients. In practice, a polite reminder a day or two after the due date fixes most late payments. Many sole traders mention their late payment rights on the invoice itself, so clients know from the start.

Getting paid into the right account

When you work out how to invoice as a sole trader, remember the payment details decide where the money lands. Putting your business account details on every invoice keeps income in one place, which makes your records far easier. GOV.UK doesn't say sole traders must have a separate account, but many find it simpler. See our guide on why a separate business bank account helps.

Many business accounts now help with how to invoice as a sole trader directly. Tide's Free plan includes 3 invoices a month and Payment Links, with unlimited invoicing on its Max plan; our Tide review has the full plan list. Mettle says its account lets you create and send invoices, match payments and chase late payers. Starling lists free invoicing, and Monzo says invoicing needs a paid plan. You can compare business bank accounts on these tools.

Tide is our featured partner. We may earn commission from referrals. Disclosure

A quick check before you hit send

Run through this before each invoice goes out, whichever tool you use for how to invoice as a sole trader. It's the habit side of how to invoice as a sole trader.

• the number follows on from your last invoice
• the client's name and address are spelled correctly
• the description is clear enough that someone in their accounts team understands it
• the supply date and invoice date are both there
• the total is right, with VAT shown if you're registered
• the due date and your bank details are on the page
• you've saved a copy for your records

Finally, remember that every paid invoice is taxable income. Set aside part of each payment as it arrives. Our guide on how much to save for tax walks through the numbers.

How to invoice as a sole trader: FAQs

Sources

• GOV.UK: invoicing and taking payment from customers, including what invoices must include and payment obligations
• HMRC: record keeping (VAT Notice 700/21), sections 3 and 4
• GOV.UK: late commercial payments, including charging interest and claiming debt recovery costs
• Tide, Mettle, Starling and Monzo's own product pages, for tools that help with how to invoice as a sole trader
• All sources checked 25 October 2026.