Invoice

Invoice Template & Guide

Create clear, accurate records for every transaction.

An Invoice is a commercial document issued by a seller to a buyer - setting out what was supplied, what is owed and the terms for payment. It provides structure and clarity for both parties, supporting smooth transactions and reliable financial record keeping.

This guide outlines how invoices are typically structured, what details they include, the points you should be aware of and how to create an invoice online.

CONTENTS

What Is an Invoice?

An invoice (also known as a commercial invoice in business contexts) is a formal document used to request payment and record a transaction between a buyer and a seller.

It sets out the goods or services supplied, the agreed prices and the terms under which payment is due.

This document is widely used by organisations, freelancers and traders as part of everyday financial administration.

Why Are Invoices Important?

Invoices play a key role in business record keeping and financial administration. They help you track what has been supplied, what is owed, and when payment is due, supporting clarity between parties and helping businesses maintain smooth financial operations.

By keeping transactions clearly documented, invoices help prevent misunderstandings, reduce payment disputes and support consistent financial oversight across the organisation.

The core purposes of an invoice can be summarised as follows:

• Provide proof of goods or services supplied.
• Support business cash flow and payment tracking.
• Required for VAT and compliance with HMRC record-keeping rules.
• Serve as formal evidence of a transaction if disputes arise.

What Should an Invoice Include?

To ensure the invoice is valid and clear, it must contain certain information. This helps prevent misunderstandings and supports accurate bookkeeping.

• Unique invoice number.
• Business and customer details.
• Date of issue and payment due date.
• Description of goods or services provided.
• Quantity, rate and total amount payable.
• VAT registration number if applicable.
• Accepted payment methods or instructions.

Legal Requirements for Invoices

Invoices must comply with UK tax and accounting obligations. This means ensuring the information is complete, consistent and presented in a format that can be relied on for tax calculations, financial reporting and audit checks.

For traders and small businesses, meeting these requirements helps avoid errors, penalties or gaps in financial records and supports smooth financial administration.

VAT-registered businesses must issue VAT invoices that meet HMRC rules, including required details such as VAT registration numbers, rates and clear breakdowns of taxable amounts.

All invoices, whether VAT-registered or not, must be accurate, legible and retained for at least six years in accordance with UK accounting and tax laws.

Different Types of Invoices

Different formats of invoice are used depending on the stage and nature of the transaction.

• Standard Invoice – typical goods/services.
• Proforma Invoice – estimate provided before delivery.
• Credit Note – issued for refunds or corrections.
• Recurring Invoice – for subscriptions or repeat services.

How to Create an Invoice

These steps help ensure your invoice is complete, compliant and easy for the customer to process.

• Use accounting software or a verified template to avoid formatting errors.
• Enter all legally required details including invoice number, dates and item descriptions.
• Ensure totals, VAT and payment terms are clear and accurate.
• Number invoices sequentially to support proper bookkeeping.
• Save and store copies securely for future reference or audits.

How Much Does It Cost to Produce Invoices?

Different methods of preparing invoices come with different levels of cost and convenience:

• Accounting software – typically £10–£50 per month depending on features.
• Manual templates – free or low cost, but require more time and administration.
• Online document services – pay-per-document or subscription-based, offering ready-formatted, professionally structured invoice templates.
• Accountant-prepared invoices – may incur additional fees depending on your accountant’s service structure.

Invoice Template Example

The example below provides a simple overview of how this type of document is typically structured and the key details it includes. Actual content may vary depending on your business and invoicing requirements.

Invoice Number: ____________________
Date: ______________________________

From (Supplier):
Name: ________________________________
Address: ______________________________
Email: ________________________________

To (Customer):
Name: ________________________________
Address: ______________________________
Email: ________________________________

{Description of Goods/Services}

Amount: £__________________________
VAT (if applicable): £________________
Total Due: £________________________

Payment Terms:
Payment is due by [due date] to the following account:
Account Name: _________________________
Sort Code: _____________________________
Account Number: ________________________

Notes:
{optional}

Robot Lawyer provides a clear, HMRC-aligned invoice template that includes all required details and can be tailored to your business.

Create a professional Invoice — with Robot Lawyer

Start the questionnaire to generate your document

Invoice FAQs

Is an invoice a legal requirement?

Yes, if you run a VAT-registered business or supply goods/services professionally.

Can invoices be electronic?

Yes, electronic invoices are fully valid in the UK.

Do freelancers need invoices?

Yes. Invoices form part of your business records and are required for tax.

What happens if an invoice isn’t paid?

You can chase payment, add statutory interest, or take legal action.

Generate Your Invoice Online

Need a professional invoice? Robot Lawyer lets you generate a clean, well-structured invoice ready for clients in minutes.

How it works:

1. Select Create Document ➝ below to begin.
2. Answer simple questions about your transaction details.
3. The platform compiles your information into a ready-formatted invoice.
4. Download instantly for your records or to send to your customer.

Invoice

Start the questionnaire to generate your document