Free tool

Is your VAT invoice complete?

Based on HMRC VAT Notice 700/21, section 4.

What a full VAT invoice must show

  • A sequential number that uniquely identifies the invoice
  • The time of supply (tax point), and the date of issue if different
  • Your name, address and VAT registration number
  • Your customer's name and address
  • A description of the goods or services
  • For each description: the quantity or extent of the services, the rate of VAT, the amount excluding VAT and the unit price
  • The total amount excluding VAT
  • The rate of any cash discount offered
  • The total VAT, in sterling

Simplified invoices up to £250

If you are not a retailer and the supply is £250 or less including VAT, you can issue a simplified invoice. It must show your name, address and VAT number, the time of supply, a description, and for each VAT rate the total including VAT and the rate charged. Exempt supplies cannot be included.

Records to keep

  • Copies of every VAT invoice you issue, and every VAT invoice you receive for costs you reclaim.
  • A digital record of each sale and purchase: date, value and VAT, in a spreadsheet or software.
  • Your VAT account: the VAT you charged, the VAT you reclaimed, and what you paid HMRC.
  • Keep them for 6 years.

Deadlines and penalties

  • Returns and payment are due 1 calendar month and 7 days after each VAT period ends.
  • Each late return earns a penalty point. At 4 points for quarterly filers, you pay £200, and £200 for each further late return.
  • Paying more than 15 days late brings a late payment penalty, plus interest.

What freelancers can reclaim

  • VAT on costs used for your business, with a valid VAT invoice: equipment, software, professional fees, travel and training related to your work.
  • Only the business share of costs used privately as well, such as a phone contract.
  • Not VAT on business entertainment of clients.

Some freelancers use the Flat Rate Scheme instead. See flat rate vs standard VAT.

Filing your VAT return

Keep your invoices in a spreadsheet with VAT in its own columns, let formulas total the nine boxes, save the summary as a CSV and upload it to MTD bridging software. See VAT for sole traders for when you need to register and who is exempt from MTD.

Freelancer? File your VAT return from your spreadsheet, from £5 a month

Keep your invoices in a spreadsheet with VAT in its own columns, upload the nine box totals as a CSV and file.

  1. Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
  2. See your VAT periods, due dates, amounts owed and payments, read from HMRC.
  3. Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
  4. Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
Start your 7-day free trialSee how it works

No card needed · From £5 a month · Plans for up to 100 businesses · Filing through HMRC's MTD service since 2019

Final thoughts

Compliance for freelancers starts with the invoice. Get every VAT invoice right, keep digital records as you go, and file through MTD software a few days before each deadline.

Disclaimer: This guide gives general information, not advice for your business. If you are unsure how the rules apply to you, speak to an accountant or contact HMRC.

Frequently asked questions

Checked against HMRC VAT Notice 700/21 (VAT invoices and records), VAT Notice 700/22 and HMRC penalty guidance. November 2026.

What must a VAT invoice include?
A unique sequential number, the time of supply, the date of issue if different, your name, address and VAT number, your customer's name and address, a description, quantity, unit price, VAT rate and amount excluding VAT for each item, the total excluding VAT, any cash discount rate, and the total VAT in sterling.

Can I issue a simplified VAT invoice?
If you are not a retailer and the supply is £250 or less including VAT. It must show your name, address and VAT number, the time of supply, a description, and for each rate the total including VAT and the VAT rate.

How long must freelancers keep VAT records?
6 years. Keep copies of every VAT invoice you issue and receive, and a digital record of each sale and purchase.

Can freelancers reclaim VAT on expenses?
Yes, on business costs with a valid VAT invoice, and only the business share of costs also used privately. VAT on client entertainment cannot be reclaimed.

Do freelancers need MTD software for VAT?
Yes, if VAT registered, unless HMRC has agreed an exemption. A spreadsheet with bridging software meets the rules.

Freelancer? File your VAT return from your spreadsheet, from £5 a month.

Swift VAT Pro files your return to HMRC from the spreadsheet you already keep. From £5 a month.

Start 7-day free trial Check your VAT invoice

No card needed · 2,900+ VAT returns filed since 2019