Last checked October 2026 · by the PaySorted team
First: are you registered?
You must register with HMRC as self-employed if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April). That £1,000 is your income before costs, not your profit. Register by 5 October after the end of the tax year you started in.
Once you're registered, HMRC sends you a 10-digit Unique Taxpayer Reference (UTR). You don't put your UTR on invoices, but contractors will ask for it if you work under CIS.
What a sole trader invoice must include
Gov.uk says every invoice must show:
- a unique invoice number
- your name and any business name you trade under
- your address and contact details — and if you use a business name, an address where legal documents can be delivered to you
- the customer's name and address
- a clear description of what you're charging for
- the date the work was done (the supply date) and the invoice date
- the amounts charged and the total owed
- VAT — but only if you're VAT registered
If you're not VAT registered, don't add VAT or show a VAT number. If you are, you'll need a full VAT invoice, which has a few extra items. See what to include on an invoice for the VAT version.
Trading under a business name
You can trade under your own name ("J Smith") or a trading name ("Smith Plumbing"). A sole trader's trading name:
- can't include "Limited", "Ltd", "LLP" or "plc"
- can't be offensive, or use sensitive words without permission
- can't copy an existing trade mark
Even with a trading name, your own legal name still has to appear on your paperwork, including invoices. "J Smith trading as Smith Plumbing" is a common way to do it.
A simple example
| Invoice number | INV-0042 |
| From | Jo Smith trading as Smith Plumbing, 12 High St, Bath BA1 1AA · 07700 900000 |
| To | Mrs A Patel, 3 Mill Lane, Bath BA2 2BB |
| Work done | 10 October 2026 — replace kitchen mixer tap |
| Labour | £90.00 |
| Parts | £65.00 |
| Total due | £155.00 |
|---|---|
| Payment terms | Due within 14 days · bank details or Pay now link |
| Invoice date | 10 October 2026 |
Get paid faster
- Invoice on the day, ideally before you leave the job. The longer you wait, the longer you wait to be paid.
- State your payment terms clearly ("due within 14 days"). See invoice payment terms.
- Make paying easy: bank details plus a card payment link.
- Number invoices in order so nothing goes missing. See invoice numbering rules.
- Chase politely and on time: a reminder before the due date, then on it, then a week after. See how to chase an unpaid invoice.
Keep your records
Keep copies of every invoice and receipt for at least 5 years after the 31 January filing deadline for that tax year. If your income is over the Making Tax Digital threshold you'll need to keep them digitally — see Making Tax Digital for trades.
In PaySorted every invoice is numbered, stored and backed up automatically, with your name and trading name set up once. Customers can pay by card or bank, and polite reminders go out for you if they don't.
General information based on gov.uk guidance (checked October 2026), not legal or tax advice.
Common questions
Do I need a business bank account as a sole trader?
There's no legal requirement for a sole trader to have a separate business account, but it makes your records much simpler. If you want CIS gross payment status, HMRC expects the business to be run through a bank account.
Can I send an invoice before I'm registered with HMRC?
Yes. You can invoice from your first job. You must register as self-employed by 5 October after the end of the tax year in which your self-employed income went over £1,000.
Do I put my UTR on my invoices?
No, it isn't required on invoices. Keep it private, but give it to contractors if you work under the Construction Industry Scheme.
Can I charge VAT if I'm not VAT registered?
No. Only VAT-registered businesses can charge VAT. If you're not registered, your invoice shouldn't show any VAT.