VAT Invoice Requirements for UK Tradespeople

VAT invoicing for tradespeople — the practical version

If you're a tradesperson in the UK earning above the VAT threshold, you need to charge VAT and issue proper VAT invoices. Here's what that actually means in practice.

When you must register for VAT

VAT registration is mandatory when your taxable turnover exceeds £90,000 in any rolling 12-month period. You can register voluntarily below this threshold — some tradespeople do because it lets them reclaim VAT on materials and tools, and it can make your business look more established.

What goes on a VAT invoice

A full VAT invoice must include: a unique sequential invoice number, the date of issue, your business name and address, your VAT registration number, the customer's name and address, a description of the goods or services supplied, the quantity, the unit price excluding VAT, the total net amount, the VAT rate, the total VAT amount, and the total amount including VAT.

Simplified VAT invoices

For supplies under £250 (including VAT), you can issue a simplified invoice. This only needs your name, VAT number, the date, a description of the supply, and the total amount including VAT. You don't need to show VAT separately or include the customer's details.

Making Tax Digital

From April 2026, Making Tax Digital for Income Tax Self Assessment becomes mandatory for sole traders and landlords with income above £50,000. This means you must keep digital records and submit quarterly updates to HMRC using compatible software. UteQuote stores all your invoices digitally, which helps meet this requirement.

The 14-day rule

You must issue a VAT invoice within 14 days of the date of supply (or the date of payment, if earlier). For ongoing services, the date of supply is usually the date you complete the work or the date you receive payment — whichever comes first.