Sole trader vs limited company — invoicing differences

Whether you trade as a sole trader or through a limited company changes a few things on your invoices. The core details are the same; the main difference is what legal identity you must disclose.

What stays the same

Both need the essentials on every invoice: the word invoice, a unique invoice number, the date, the customer’s details, a description of what you supplied, the total, and how to pay. See how to write an invoice.

What’s different

	Sole trader	Limited company
Whose name?	Your own name (and trading name)	The registered company name
Company number?	No — you don’t have one	Yes — must be shown
Registered office?	Not applicable	Show it if different from your trading address
Legal status	You and the business are the same	The company is a separate legal entity
Liability	Personal	Limited to the company (generally)

A limited company has legal disclosure duties: your full registered company name and company registration number must appear on invoices and business correspondence, and your registered office address if it differs from where you trade.

A sole trader has none of those — you simply invoice in your own name, optionally with a trading name (for example “Jane Smith trading as Smith Plumbing”).

VAT works the same for both

VAT doesn’t depend on your structure. Either must register once VAT taxable turnover passes £90,000 in a rolling 12-month period, and either can register voluntarily. Once registered, both show their VAT number and charge VAT in the same way — see do I need to charge VAT? and what a VAT invoice must include.

Templates for both

Pick a starting point that matches how you trade: the sole trader invoice template or the small business / limited company template. Both open the generator ready to go.

This guide covers invoicing differences only. Choosing a business structure also affects tax and legal liability — worth discussing with an accountant.