How to write an invoice as a tradesman: what UK law requires (and what gets you paid)
An invoice does two jobs: it satisfies HMRC, and it gets you paid. Most guidance covers the first and ignores the second. Here’s what must legally be on a UK trade invoice — which differs for sole traders, limited companies and VAT-registered businesses — and the handful of habits that measurably shorten how long customers take to pay.
What every invoice must include
Whatever your structure, an invoice needs:
- A unique, sequential invoice number
- Your business name, address and contact details
- The customer’s name and address
- A clear description of the work, with the date the work was done and the invoice date
- The amount due — itemised where the job had distinct parts — and how to pay
Sole trader vs limited company rules
Sole traders must show their own name as well as any trading name, and an address where legal documents can be served.
Limited companies must show the full registered company name exactly as it appears on the certificate of incorporation. If you choose to put directors’ names on the invoice, you must include all directors, not a selection.
If you’re VAT registered
A VAT invoice additionally requires:
- Your VAT registration number
- The tax point (time of supply) if it differs from the invoice date
- The VAT rate applied and the amount of VAT, shown separately from the net
- For CIS work caught by the domestic reverse charge: no VAT charged, and wording on the invoice stating the reverse charge applies
Payment terms and late-payment interest
You choose your payment terms — “due on receipt”, 7 days and 14 days are all common in the trades; if no terms are agreed, the legal default for business customers is 30 days.
For business-to-business work, the Late Payment of Commercial Debts legislation gives you a statutory right to interest at 8% above the Bank of England base rate, plus fixed compensation per invoice (£40, £70 or £100 depending on the debt size). You rarely need to claim it — mentioning it in your terms is usually enough. For domestic customers, interest is only enforceable if your quoted terms said so.
What actually gets invoices paid faster
The legal content keeps you compliant; these habits move the money:
- Invoice the same day the job finishes — every day of delay adds days to payment
- Take a card or bank-transfer payment link on the invoice itself, so paying takes one tap
- Take deposits and stage payments on bigger jobs so the final invoice is small
- Chase on a schedule — a polite nudge at day 3, firmer at day 7 and 14 — rather than when you happen to remember
Or stop writing them by hand
TradeHub OS turns a finished job into a branded invoice in under a minute — line items pulled from the quote, VAT and CIS handled, a Stripe payment link on every invoice, and automatic reminders that chase overdue invoices for you. Invoices sync to Xero so your accountant never asks for a shoebox of PDFs.
This guide is general information for UK trades and landlords, not legal advice. Always refer to the current regulations and official guidance from the HSE, Gas Safe Register or your competent-person scheme.
