How to invoice when you're not VAT registered (UK)

Most UK sole traders are not registered for VAT, and that's fine: you still send invoices, you just leave VAT out of them entirely. What catches people out is the detail — which name to put at the top, whether to mention VAT at all, and what to do in the weeks between applying for VAT registration and getting a number.

This guide explains what a plain invoice needs when you're not VAT registered, how to show a trading name, and what changes as you approach the £90,000 threshold. The free invoice generator switches VAT off everywhere when you choose "Not VAT registered".

What to put on your invoice

GOV.UK lists what an invoice must include. For a business that is not VAT registered, that comes down to:

Number your invoices in one unbroken sequence (for example INV-0001, INV-0002) so each one is unique and easy to find later.

Your name and trading name

As a sole trader you are the business, so your own name goes on the invoice. If you trade under a business name, show that as well, along with an address where legal documents can be served on you. The usual UK wording joins them with "trading as":

Jane Smith trading as Smith Joinery

In Invoice Native, choose Sole trader, put your full name as the legal name and your business name as the trading name, and the invoice prints exactly that line.

If you run a limited company or LLP, the company's registered name goes on every invoice instead. It is standard practice to add the company number, place of registration and registered office too, and Invoice Native prints them in the footer, for example "Smith Joinery Ltd · Registered in England and Wales No. 01234567 · Registered office: 1 High Street, Leeds LS1 1AA".

No VAT anywhere

Only a VAT-registered business may issue a VAT invoice (VAT Notice 700 §19), and HMRC can charge a penalty if you do so without being registered. So when you're not registered:

• don't add 20% (or any rate) to your prices on the invoice;
• don't show a VAT total, even at £0.00;
• don't print a VAT number, and never borrow one.

When you pick Not VAT registered in Invoice Native, the title becomes "Invoice", the VAT column disappears from the lines, and there is no VAT summary or VAT number field.

An example invoice

Add your bank details under the total: account name, sort code (written like 12-34-56) and 8-digit account number. Print the account name exactly as your bank holds it, because the payer's bank checks it before sending money (Confirmation of Payee).

Payment terms and late payment

State when you expect to be paid, such as 14 or 30 days. If you agree no terms with a business customer, the law treats payment as due 30 days after the invoice or delivery, whichever is later. Invoice Native offers due on receipt, 7, 14, 30 and 60 days, or a custom date, and defaults to 30 days.

You can also add a late payment clause saying you will charge interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998. See late payment interest and compensation for how that works.

The £90,000 VAT threshold

You must register for VAT once your VAT-taxable turnover goes over £90,000 (the deregistration threshold is £88,000). These figures were left unchanged at the Autumn Budget 2025. They can change at any Budget, so check GOV.UK before you rely on them.

Keep an eye on your turnover as you grow. Once registered, you charge VAT at the right rate on each sale — 20% standard, 5% reduced, or zero-rated — and your invoices must follow HMRC's VAT invoice rules.

Waiting for your VAT number

There's often a gap between applying for VAT registration and receiving your VAT number. During that time:

1. Don't show VAT on your invoices, because you can't issue a VAT invoice without a VAT number.
2. You can raise your prices to allow for the VAT you will have to pay on those sales.
3. Once the number arrives, reissue VAT invoices for those sales so your VAT-registered customers can reclaim the VAT.

If you need to ask for payment before you supply, a pro forma invoice that says "This is not a VAT invoice" is another option. In Invoice Native that's the pro forma variant of a quote.

Common mistakes

• Adding VAT because customers expect it. If you're not registered, you can't charge it.
• Titling the document "VAT Invoice" or printing "VAT: £0.00".
• Missing the trading-as line, so the customer doesn't know who they're dealing with.
• Gaps or repeats in invoice numbers.
• An account name that doesn't match the bank's records, which can stop or delay payment.

Checklist

• ✅ Title "Invoice", with a unique number
• ✅ Your name, plus "trading as" your business name if you use one
• ✅ An address for legal documents, and your customer's name and address
• ✅ Dates, description and amounts, with no VAT anywhere
• ✅ Payment terms and bank details in your exact account name