Guides

Plain-English help with UK invoicing, VAT, CIS and the construction reverse charge.

• Do I need to charge VAT?

  When UK sole traders and small businesses must register for VAT, the £90,000 threshold, and what it means for your invoices.

• How to invoice when you're not VAT registered

  What a non-VAT invoice must include, what to leave off, and how to bill clients correctly when your business isn't registered for VAT.

• What a UK VAT invoice must include

  HMRC's required fields for a full VAT invoice, the rules for simplified invoices under £250, VAT rates, invoice numbering, tax points and foreign-currency invoices.

• Quotes and estimates — and how to turn one into an invoice

  The difference between a quote, an estimate and an invoice, what a good quote includes, and how to convert an accepted quote into an invoice.

• CIS invoices and the construction reverse charge

  How CIS subcontractors invoice contractors — deduction rates (20/30/0%), the labour-vs-materials split, and the VAT domestic reverse charge for construction.

• What is a proforma invoice?

  When to use a proforma invoice, how it differs from a VAT invoice, and why it can't be used to reclaim VAT.

• What is a credit note and how to issue one

  When to use a credit note to cancel or correct an invoice, what it must include, and how credit notes affect VAT.

• How to charge interest on late payments (UK)

  How statutory interest and fixed compensation work on overdue business invoices, when interest starts, and how to claim it.