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Sole trader invoice template

A sole trader can invoice under their own name or under a business name, but either way the business is them. If you use a trading name, the law expects your own name and an address on every invoice, so customers know who they are dealing with.

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Sole trader invoice · example

FromOwen Price trading as Greenhaven Gardens
ToMrs E. Rhys
CurrencyGBP
DescriptionQtyPriceAmount
Garden maintenance visits, September (4 visits)4£85.00£340.00
Hedge cutting and green waste removal, 19 September1£160.00£160.00
Supply and lay turf, rear lawn, per square metre30£12.00£360.00
Total£860.00

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How to use the sole trader invoice

  1. Enter your own name, then "trading as" and your business name if you use one.
  2. Add a UK address where documents can be served on you.
  3. Describe and price the work; leave VAT at zero until you have a VAT number.
  4. Set the due date, save, and sign in to issue numbered invoices.

Own name or trading name: what the invoice must show

These disclosure rules come from Part 41 of the Companies Act 2006 and the trading disclosure regulations made under it. They cover business letters, written orders, invoices, receipts and written demands for payment, and signs at any premises where you deal with customers or suppliers.

You trade asExampleThe invoice must also show
Your surname, with or without forenames or initialsOwen Price, or O. PriceNothing extra: your name is the business name
Your name plus other wordsOwen Price GardeningYour own name and a UK address for documents, because this counts as a business name
A business nameGreenhaven GardensYour own name and a UK address for documents

VAT thresholds for sole traders

VAT registration belongs to you, not to a trading name, so turnover from all your sole trader businesses is added together. Zero-rated sales count towards the threshold; exempt sales do not.

TestAmountWhat it means for your invoices
Registration, looking backOver £90,000 taxable turnover in the last 12 monthsRegister within 30 days of the end of the month you went over
Registration, looking aheadOver £90,000 expected in the next 30 days aloneRegister straight away
DeregistrationUnder £88,000 expected in the next 12 monthsYou can ask to deregister and stop charging VAT

Questions

Do I need to register a trading name?

No. Sole traders do not register a business name with Companies House. You still cannot use a name that includes "limited", "Ltd", "LLP" or "plc", or a sensitive word such as "Royal" or "Bank" without approval, and you should check it does not copy an existing trade mark.

What happens to my invoices when I pass the VAT threshold?

Once taxable turnover over the last 12 months goes above £90,000, or you expect it to in the next 30 days alone, you must register. You owe VAT from your effective date of registration, but you cannot show VAT on invoices until your VAT number arrives; HMRC suggests raising prices to cover it and reissuing those invoices as VAT invoices once you have the number.

Can I register for VAT voluntarily?

Yes. It can make sense if your customers are VAT-registered businesses that reclaim it, or if you buy a lot of standard-rated goods. It adds VAT returns, and your prices rise by 20% for customers who cannot reclaim.

Should I use my home address on invoices?

The address must be one where documents can be delivered to you; it does not have to be your home. Many sole traders use business premises or a mail address service that accepts legal post.

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