A UK invoice issued by a sole trader or limited company must include: a unique invoice number that runs sequentially, the date of issue, your business name and address, the customer's name and address, a clear description of goods or services, the amount being charged, and the payment terms. If you are VAT-registered you must also include your VAT number, the VAT rate per line, the amount of VAT, and the gross total.

The generator builds all of this for you from the form on the left, defaulting to GBP at 20% VAT and Net 30 payment terms. Switch to USD, EUR, AUD, CAD, JPY or INR if you bill internationally; the symbol and tax rate update accordingly. Limited companies must also display the registered company name and number, plus the registered office address, on the invoice; add these to the business name and address fields if they apply to you.

Net 30 means payment is due 30 days from the invoice date and is the most common term in the UK. Net 15 is appropriate for new clients, smaller jobs, or anyone where cashflow matters; Net 60 and Net 90 are usually only used when a large enterprise dictates them. The Late Payment of Commercial Debts Act lets you charge statutory interest at 8% above the Bank of England base rate on overdue B2B invoices.

A freelancer issuing their first invoice should default to Net 14 or Net 15 to get paid faster, not the corporate-standard Net 30. The tool calculates the due date for you based on whichever term you pick. Track recurring receipts with the [Business Profit Calculator](/business-profit-calculator) once invoices start clearing.

The generator handles two discount types: a percentage off the subtotal (e.g. 10% loyalty discount), or a fixed amount (e.g. £50 off for early settlement). The discount is applied before VAT, which is the correct UK approach because VAT is calculated on the net amount actually being charged. So a £1,000 invoice with a 10% discount and 20% VAT becomes £900 net, £180 VAT, £1,080 gross.

Show the discount as a separate line so the client can see what they would have paid; this both demonstrates value and avoids the awkward conversation when an old quote and a new invoice differ. For pricing decisions before you invoice, the [Markup Calculator](/markup-calculator) and [Profit Margin Calculator](/profit-margin-calculator) help you set rates that survive the discount.