Reg. 07380272 · England & Wales · Est. 2010
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Net Receivable
£1,000.00
Gross Total
£1,000.00
Items
1
VAT
£0.00
Everything you need to know about invoicing for the self-employed
Building your invoice
An invoice is a formal request for payment that itemises the goods or services you have provided. Each line item should include a clear description and the net amount (before VAT). Your invoice subtotal is the sum of all line items. If you are VAT registered, VAT is added to the subtotal to arrive at the gross total that your client owes.
VAT on invoices
If your taxable turnover exceeds the VAT registration threshold of £90,000, you must register for VAT and charge it on your invoices. The standard UK VAT rate is 20%. Your invoice must show the VAT amount separately, your VAT registration number, and the applicable rate. You can voluntarily register for VAT below the threshold, which allows you to reclaim VAT on your business purchases.
CIS deductions on invoices
If you work in the construction industry as a subcontractor, your contractor will make CIS deductions from the labour portion of your invoice before paying you. Materials you supply are excluded from the deduction. Verified subcontractors have 20% deducted, while unverified subcontractors face a 30% deduction. These deductions count as advance payments towards your income tax and National Insurance.
What must a self-employed invoice include?
A valid invoice should include your name or business name, your contact details, the client's name and address, a unique invoice number, the invoice date and payment due date, a clear description of each item or service, the amount for each item, the subtotal, VAT amount and rate (if VAT registered), your VAT registration number (if applicable), the total amount due, and your payment details. Keeping invoices numbered sequentially helps with record-keeping and HMRC compliance.
When should I send my invoice?
For VAT-registered businesses, you must issue a VAT invoice within 30 days of the date of supply (or the date of payment if earlier). For non-VAT-registered self-employed individuals, there is no legal deadline, but best practice is to invoice as soon as the work is completed or goods are delivered. Prompt invoicing improves cash flow and reduces the risk of disputes.
How long should I keep copies of my invoices?
HMRC requires you to keep records of all sales and income, including copies of invoices, for at least 5 years after the 31 January Self Assessment deadline for the relevant tax year. If you are VAT registered, you must keep VAT records for 6 years. It is good practice to keep both digital and physical copies.
HMRC-Aligned: This calculator uses official 2025/26 VAT and CIS rates. For complex invoicing scenarios involving reverse charge VAT, international services, or partial exemption, consult a qualified accountant or tax adviser.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms