Details you must include on limited company invoices

Issuing invoices for your goods or services is a key task for limited company owners. If your invoices lack specific details, this could delay receiving payment, possibly resulting in cash-flow problems.

By law, you are required to include certain information on all your invoices.

If you’re VAT registered – as many limited companies are – there are additional things to include (see below).

So what exactly are the mandatory details you need to have on invoices you send out?

Essential information

• Always clearly include the word ‘invoice’ on the document.
• Include a unique invoice number (this must also be sequential if you’re registered for VAT).
• Include your limited company’s registered number.
• Include your VAT registration number (if applicable).
• The tax point (if this is different from the invoice date).
• Add your company address and full contact details, including telephone numbers, email address and social media.
• Include the name of the client or agency you are invoicing and their full address and contact details.
• Your invoice should specify what goods or services you request payment for, for example: ‘consultancy services’ – 20 hours at £50 per hour.
• Specify the date the invoice is issued, and if the date of supply differs from the issue date, add the tax point.
• State the total amount you have charged excluding VAT, the total including VAT and the rate of VAT (currently 20%).
• Include any reference number or purchase order number you were given in advance by your client / agency / customer.
• If you add a director’s name to your invoices, you must include the names of all the directors.
• Add as a separate element from the provided invoice details for the goods or services, including VAT, any expenses you claim that were agreed upon with the client.
• Be clear about your preferred method of receiving payment, typically by electronic payment, and include the relevant information such as your company’s bank account and sort code.

These two GOV.UK guides are useful – a) what invoices must include, and b) additional details required if you’re VAT registered.

More details

We strongly recommend that you discuss payment terms with your clients/customers before you undertake any work and/or send out invoices.

The law in the UK assumes a 30-day payment period, although longer periods are not unheard of, especially if you’re dealing with larger clients.

Be sure to specify your payment terms in advance and include these on your invoice. Many agencies and business clients will pay quite promptly. You can incentivise early payment by offering a discount if the invoice is settled within 7 days, for instance.

Conversely, you are entitled to charge interest for late payment, and while many smaller businesses are reluctant to do this, it is worth considering. In any case, you should always state what, if any, charges apply for late payment.

Are you VAT registered?

You must register for VAT if your company’s 12-month turnover exceeds the current VAT threshold (£90,000 for the 2024-25 tax year).

If you have only recently registered, you should note that you can’t add VAT to your invoices if you haven’t received your registration number yet.

As mentioned above, VAT invoices must be issued with a unique, sequential number. For instance, if you’re providing a service for ABC Company Ltd, your invoices should be formatted as ABC 001, ABC 002, and so on.

This will also help you to keep tabs on your own accounting. For more information on what a VAT invoice should include, see here for more details.

Project a professional image

It’s definitely worth taking some time to design an invoice that is laid out, easy to read, and projects a professional image.

You can do this yourself or commission a designer to do one for you which includes your company logo and any particular branding.

You can also find a range of accounting software products, such as the excellent FreeAgent, which invoices clients and customers directly using pre-made professional templates. We’ve used FreeAgent for over 10 years at Limited Company Help.

This is a great way to keep on top of your invoicing while updating your accounts simultaneously.

The human touch

Get the name and contact number of someone in the company or agency you’re invoicing. That way, if something goes wrong, there’s an issue with payment, or you have a query, you know who to speak to to resolve the matter.