Do I need to include my VAT number on every invoice?

Yes, if you are VAT-registered, you must include your VAT registration number on all VAT invoices. This is a legal requirement under HMRC regulations. The VAT number must be in the correct GB format (e.g., GB123456789) and displayed prominently on the invoice.

When should I apply CIS deductions to my invoices?

CIS deductions apply to construction work. If you are a subcontractor in the construction industry, the contractor (your client) will deduct CIS tax from your invoice. The rate is 20% if you're registered with HMRC for CIS, or 30% if not registered. The deduction is calculated on the total invoice amount including VAT.

What is reverse charge VAT and when does it apply?

Reverse charge VAT is a special VAT treatment where the customer, not the supplier, accounts for VAT. It commonly applies to construction services under CIS, supplies of mobile phones and computer chips, and certain cross-border services within the EU. When reverse charge applies, no VAT is added to the invoice, but it must be clearly marked as 'reverse charge'.

Do I need a Gas Safe number for all plumbing work?

You only need Gas Safe registration if you work on gas appliances or gas installations. For water-only plumbing work, Gas Safe registration is not legally required. However, displaying your Gas Safe number (if you have one) on invoices demonstrates professional credentials and regulatory compliance.

What are the current UK VAT rates in 2025-2026?

The UK has four VAT rates: Standard Rate (20%) applies to most goods and services; Reduced Rate (5%) applies to domestic fuel, children's car seats, and energy-saving materials; Zero Rate (0%) applies to most food, books, and children's clothing; and Exempt applies to financial services, insurance, education, and healthcare. The appropriate rate depends on what you're selling.

What payment terms should I use on UK invoices?

Net 30 (payment due within 30 days) is the most common payment term in the UK business environment. However, you can set terms that suit your business cash flow, such as Net 14, Net 7, or 'Due on Receipt' for immediate payment. Always state payment terms clearly on the invoice to avoid disputes.

Is this invoice generator Making Tax Digital (MTD) compliant?

Yes, our invoice generator creates invoices that meet HMRC Making Tax Digital requirements. This includes proper VAT breakdown with rate identification, sequential invoice numbering, UK date format (DD/MM/YYYY), complete business and client information, detailed line items with quantities and rates, and digital record-keeping compatibility.

What is the difference between CIS registered (20%) and not registered (30%) rates?

CIS registered subcontractors have a 20% deduction rate because they've completed registration with HMRC, demonstrating compliance and business legitimacy. Unregistered subcontractors face a higher 30% deduction rate as an incentive to register. There's also a gross payment status (0% deduction) available to established businesses that meet specific HMRC criteria.

Do I need a Companies House number on my invoice?

If you operate as a limited company (Ltd or PLC), including your Companies House registration number on invoices is recommended for transparency and professionalism, though not strictly legally required. The number helps clients verify your business registration and adds credibility. Sole traders and partnerships do not have Companies House numbers.

How do I format UK bank details on an invoice?

UK bank details should include: Bank Name, Sort Code in XX-XX-XX format (6 digits with hyphens), Account Number (8 digits), and optionally IBAN (22 characters starting with GB) and SWIFT/BIC code for international payments. Always double-check your bank details are correct to ensure you receive payments.

HMRC Compliant

UK Invoice Compliance Guide

Create professional, HMRC-compliant invoices with VAT calculations, CIS deductions, and industry-specific registrations for UK businesses.

4 VAT Rates

CIS Support

100% MTD Compliant

VAT Rates Supported

CIS Deduction Options

100%

HMRC MTD Compliant

Industry Registrations

UK Business Identifiers

Add professional credentials to your invoices with automatic validation and formatting.

VAT Registration Number

Identifies VAT-registered businesses in the UK

GB123456789, GB123456789012

Must be displayed on all VAT invoices if business is VAT-registered. Format must include GB prefix followed by valid number.

Company Registration Number

Identifies companies registered with Companies House

12345678, SC123456

Recommended for limited companies to display on invoices. SC prefix for Scottish companies, NI prefix for Northern Ireland companies.

Gas Safe Registration Number

Identifies registered gas engineers and plumbers

123456, 1234567

Legal requirement to be Gas Safe registered for any work on gas appliances. Must display number on invoices for gas-related work.

NICEIC Registration Number

Identifies registered electricians and electrical contractors

ABC12, ABC1234

Industry standard certification for electricians. Demonstrates compliance with BS 7671 wiring regulations and Part P building regulations.

UK VAT System (2024-2025)

Automatic VAT calculation with support for all UK VAT rates. Select the appropriate rate and we'll handle the calculations.

20%

Standard Rate

Standard VAT rate applied to most goods and services in the UK

• Restaurant meals
• Building materials
• Professional services

Reduced Rate

Reduced VAT rate for certain goods and services

• Domestic fuel and power
• Children's car seats
• Mobility aids for elderly

Zero Rate

Zero-rated supplies where VAT is charged at 0%

• Most food and drink
• Books and newspapers
• Children's clothing and footwear

Exempt

VAT Exempt

VAT exempt supplies where no VAT is charged

• Financial services
• Insurance policies
• Education and training

Reverse Charge VAT

Special VAT treatment where customer accounts for VAT instead of supplier

• Construction services (CIS)
• Mobile phones and computer chips
• Certain cross-border B2B services

CIS (Construction Industry Scheme)

Automatic CIS deduction calculation for construction invoices. Deductions are applied after VAT and clearly displayed.

Gross Payment Status

Subcontractors with gross payment status granted by HMRC
Direct employees (CIS not applicable)
Non-construction work

20%

CIS Registered

Registered with HMRC for CIS

Subcontractors registered with HMRC for CIS
Most common rate in construction industry

30%

CIS Not Registered

Not registered with HMRC for CIS

Subcontractors not registered under CIS
Higher deduction rate as incentive to register

CIS Calculation Example

Subtotal:£2,500.00

VAT (20%):£500.00

Total (inc. VAT):£3,000.00

CIS Deduction (20%):-£600.00

Amount Due:£2,400.00

In-Depth Compliance Guides

Explore our comprehensive guides for detailed information, examples, and step-by-step instructions on UK invoice compliance.

VAT-Compliant Invoices: Complete Guide

Master all 4 UK VAT rates, reverse charge VAT, HMRC requirements, and Making Tax Digital compliance with real-world examples.

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CIS Deduction Guide: Complete Breakdown

Understand all 3 CIS rates, step-by-step calculations with VAT interaction, invoice requirements, and how to reclaim deductions.

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How to Create a UK Compliant Invoice

Fill in Your Business Information

Enter your business name, address, contact details, and UK compliance fields including VAT registration number (GB format), Companies House number, Gas Safe registration (for plumbers), or NICEIC registration (for electricians).

Add Client Details

Enter your client's information including their VAT registration number if they're VAT-registered. This is required for B2B invoices and ensures HMRC compliance.

Add Line Items

Describe the goods or services provided with quantities, rates, and amounts. You can assign different VAT rates to individual line items if needed.

Select VAT Rate

Choose the appropriate UK VAT rate: 20% (Standard Rate), 5% (Reduced Rate), 0% (Zero-Rated), or Exempt. Enable reverse charge VAT if applicable for construction services.

Apply CIS Deduction

For construction invoices, select the Construction Industry Scheme deduction rate: 0% (gross payment status), 20% (CIS registered), or 30% (not registered). CIS deductions are calculated after VAT.

Add Payment Information

Include UK bank details with sort code (XX-XX-XX format), 8-digit account number, and optionally IBAN for international payments. Set payment terms (Net 30 is standard).

Review & Download

Use print preview to verify all information is correct, then download your HMRC-compliant PDF invoice with automatic VAT calculations and UK date format (DD/MM/YYYY).

Ready to Create Your UK Invoice?

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Frequently Asked Questions

Everything you need to know about UK invoice compliance and HMRC requirements

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