Free Invoice Maker for London Businesses
London is one of the world's largest concentrations of freelancers, contractors, and small businesses. From fintech and design to law, media, and construction, a substantial portion of London's workforce operates outside of traditional employment. Invoicing correctly — particularly around VAT — is both a legal requirement and a practical necessity for getting paid on time. This tool lets you build a GBP invoice with correct VAT line items and export it as a PDF with no account required.
UK VAT and HMRC compliance
The standard UK VAT rate is 20%, applying to most goods and services. A reduced rate of 5% applies to some energy-efficient products and home renovation services. Zero-rated supplies include most food, books, and children's clothing. If you are VAT-registered, every invoice you issue to a VAT-registered client must meet HMRC's requirements for a full VAT invoice: your VAT number, their details, a unique invoice number, the tax point date, and a line-by-line breakdown of VAT applied. Keeping your invoice numbering sequential and your records for at least six years is a legal obligation under Making Tax Digital rules.
Invoicing culture in London
London's professional services market is accustomed to clean, detailed invoices delivered promptly after work is completed. Agencies, media companies, and financial services firms typically have specific accounts payable requirements — including a PO number or cost centre reference. Confirm these details before submitting your first invoice to avoid delays. For smaller clients and direct relationships, a PDF invoice emailed with clear payment instructions (sort code and account number for BACS, or bank details for international transfers) is standard. The UK's Late Payment Act gives you the right to charge interest on overdue invoices — noting this on your invoice is a reasonable and accepted practice.
Frequently asked questions
What must a UK VAT invoice include?
A valid UK VAT invoice must include: a unique invoice number, your business name and address, your VAT registration number, the invoice date and the tax point date (if different), the customer's name and address, a description of the goods or services, the quantity and unit price, the VAT rate applied (standard 20%, reduced 5%, or zero-rated), the total amount excluding VAT, the VAT amount, and the total amount including VAT. Simplified VAT invoices for transactions under £250 have fewer required fields.
Do I need to register for VAT in the UK?
You must register for VAT with HMRC if your taxable turnover exceeds £90,000 in any rolling 12-month period (2024 threshold). Below that threshold, registration is voluntary. Once registered, you must charge VAT at the appropriate rate on your taxable supplies, submit VAT returns (usually quarterly), and maintain VAT records for at least 6 years. If you are not VAT-registered, do not add VAT to your invoices.
What payment terms are standard for London freelancers?
Net 30 is the most common payment term in the UK, though many London agencies and startups now pay on Net 14 or even Net 7 for smaller engagements. The Late Payment of Commercial Debts (Interest) Act 1998 entitles businesses to charge statutory interest (8% over the Bank of England base rate) on overdue invoices. Knowing this right exists — and noting it on your invoice — can encourage timely payment.