Invoice Generator — Create Professional Invoices Free
A professional invoice is both a legal document and a payment request. In the UK, invoices for VAT-registered businesses must include specific information by law — and even for non-VAT-registered businesses, a clear, professional invoice reduces payment delays and disputes. The free invoice generator on PublicSoftTools creates customisable, professional invoices downloadable as PDF with no watermarks and no account needed.
How to Create an Invoice
- Open the invoice generator.
- Enter your business name and address (and VAT number if VAT-registered).
- Enter the client name, address, and PO number (if they require one).
- Set the invoice number and invoice date.
- Add line items: description, quantity, unit price. The subtotal calculates automatically.
- Apply tax rate (UK standard VAT is 20%; reduced rate 5%; or none).
- Add any discounts and set payment terms.
- Enter your bank details for payment.
- Click Download PDF.
Invoice Elements: What to Include
| Element | Required? | UK legal requirement? | Tips |
|---|---|---|---|
| Invoice number | Required | Yes (for VAT invoices) | Use a sequential numbering system. Common formats: INV-001, 2026-001, or client code + number. Never reuse numbers. |
| Invoice date | Required | Yes | Date you raised the invoice. For VAT invoices, the tax point (time of supply) must also be clear. |
| Your business name and address | Required | Yes | If a limited company: must include registered company name, registration number, and registered address (may differ from trading address). |
| Client name and address | Required | Yes | Full legal name if invoicing a company. PO number if the client requires one for payment processing. |
| Description of goods / services | Required | Yes | Be specific enough for the client to reconcile against their purchase order. Vague descriptions delay payment. |
| Quantity and unit price | Required | Yes | Show quantity, unit, unit price, and line total clearly. Hours × rate = total for service invoices. |
| Subtotal | Required | Yes | Sum before tax and discounts. Show clearly before the tax lines. |
| VAT amount (if VAT-registered) | If VAT-registered | Yes (plus VAT number) | Must show: VAT rate applied, amount of VAT, total including VAT. Your VAT registration number must appear. |
| Total amount due | Required | Yes | Make this the most visually prominent figure on the invoice. Include currency. |
| Payment terms | Strongly recommended | Recommended | State the due date explicitly (e.g., "Payment due 30 days from invoice date: 25 July 2026"). Ambiguous terms lead to late payment. |
| Payment details | Required for payment | Not legally required but practically essential | Bank name, sort code, account number. IBAN and BIC for international. Payment reference (usually invoice number). |
Payment Terms Options
| Terms | Payment due | Typical for | Notes |
|---|---|---|---|
| Due on receipt | 0 days | Freelancers and small businesses wanting immediate payment | Aggressive but acceptable for new clients, project deposits, and one-off work |
| Net 7 | 7 days | Freelancers; digital services; small B2B transactions | Increasingly common; startup and tech companies often pay faster |
| Net 14 | 14 days | SMEs; consultants; agencies | Good balance between cash flow needs and client payment cycles |
| Net 30 | 30 days | Standard B2B; corporate clients; larger businesses | Most common commercial standard; UK Late Payment Act uses 30 days as default if no terms agreed |
| Net 60 | 60 days | Large corporations; manufacturing; construction | Long payment cycles common in some industries; check against Late Payment legislation limits |
| Net 90 | 90 days | Some large multinationals and public sector | UK regulations restrict payment terms to 60 days for public sector unless agreed otherwise; 90 days is legally questionable |
| 2/10 Net 30 | 30 days (2% discount if paid within 10) | Businesses incentivising early payment | Cash discount for early payment; 2% discount in 20 days has effective annual rate of ~36% — good incentive |
UK Invoice Legal Requirements
Non-VAT-registered businesses
No specific legal format is required, but a good invoice should include: invoice number, date, your name and address, client name and address, description of goods or services, amount due, and payment details. Even without a VAT requirement, a professional format builds trust and reduces payment disputes.
VAT-registered businesses (mandatory requirements)
VAT invoices in the UK must include:
- A unique invoice number (sequential, never reused)
- The date of issue
- The tax point (time of supply) if different from invoice date
- Your full business name and address
- Your VAT registration number (format: GB followed by 9 digits)
- The customer's name and address
- Description and quantity of goods or services
- The rate of VAT applied to each item
- Total net amount (excluding VAT)
- Total VAT amount
- Total gross amount (including VAT)
Limited companies must also show their registered company name (which may differ from trading name), Companies House registration number, and registered office address on all business documents including invoices.
Late Payment: UK Legal Rights
The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses the right to:
- Statutory interest on overdue invoices: 8% above the Bank of England base rate (e.g., if base rate is 4.25%, the rate is 12.25% per annum)
- Fixed compensation per overdue invoice: £40 (invoices under £1,000), £70 (£1,000–£9,999.99), or £100 (£10,000+)
- Reasonable debt recovery costs if you use a debt collection agency
Default payment period: if no payment terms are agreed, 30 days is the legal default for B2B. Public sector bodies must pay within 30 days. To invoke these rights, the debt must be a "qualifying debt" — a commercial transaction between businesses where at least one party is acting in the course of a business.
Reducing Late Payments
Late payment is a persistent problem — around 50% of UK SMEs report being paid late. Practical steps:
- Invoice promptly: Send the invoice the day work is delivered, not days later. Delayed invoicing signals low priority.
- State the due date explicitly: "Payment due 25 July 2026" is clearer than "Net 30 days." Ambiguity is used to justify delay.
- Follow up proactively: A brief email 2–3 days before the due date ("Just a reminder that invoice INV-042 is due this Friday") significantly improves on-time payment rates.
- Offer multiple payment methods: Bank transfer, card via Stripe/PayPal, Direct Debit for recurring clients. Every friction point delays payment.
- Charge interest on overdue invoices (state this in your payment terms) — and actually charge it when invoices are late. Clients who know you will enforce terms pay more reliably.
- Deposit and milestone payments: For large projects, invoice 30–50% upfront and the rest on completion rather than everything on delivery.
Common Questions
Do I need to number invoices sequentially?
Yes — HMRC requires that invoice numbers be unique and sequential (for VAT invoices). This means each invoice number must be higher than the previous one, with no gaps or reused numbers. Common systems: simple sequential (001, 002, 003), year-prefixed (2026-001), or client-prefixed (ACME-001). Keeping a sequential record also helps you identify missing payments in your accounts and is required for VAT return purposes.
What is a credit note?
A credit note is a document that reduces a previously issued invoice — issued when goods are returned, a service was not delivered, or a billing error needs correction. It has a negative amount and references the original invoice number it corrects. If you issue a £500 invoice and then discover it should have been £450, you issue a £50 credit note rather than cancelling and reissuing the original invoice (which would break the sequential numbering requirement). VAT credit notes must be issued within 14 days of the supply being adjusted.
Can I send an invoice by email?
Yes — PDF invoices sent by email are legally equivalent to printed invoices in the UK and EU. Electronic invoicing (e-invoicing) is increasingly mandated in other countries (Italy, France, Germany are introducing requirements). For UK purposes, email PDF is standard practice and fully acceptable to HMRC for VAT record-keeping, provided you retain copies for at least 6 years (10 years for VAT-related records).
Generate Your Invoice
Professional invoice templates with line items, VAT, payment terms, and bank details. Download as PDF. No signup, no watermark.
Open Invoice Generator