Self-Employed Invoice: Free Template + What the Law Requires (2025)
If you're self-employed β sole trader, freelancer, contractor, consultant β you need to invoice clients to get paid. This guide covers exactly what must go on your invoice, UK and US legal requirements, VAT rules, a complete template, and what to do when clients don't pay.
Do you need to register a business to invoice?
No. If you're self-employed in the UK, you can start invoicing clients the moment you begin working. You don't need a company number, a registered company name, or a business bank account. You just need to:
- βRegister as self-employed with HMRC (you can do this online, it takes 10 minutes)
- βFile a Self Assessment tax return each year for income over Β£1,000
- βRegister for VAT if your turnover exceeds Β£90,000 in a rolling 12-month period
- βKeep records of your invoices for at least 5 years after the 31 January filing deadline
The difference between self-employed and company invoices? Mostly formatting. A limited company invoice includes a company registration number. A sole trader invoice just uses your name. Both work the same way legally.
What must a self-employed invoice include? (UK)
HMRC sets out the minimum requirements. Here's a clear breakdown:
| Field | Not VAT registered | VAT registered |
|---|---|---|
| Your name (or trading name) | β Required | β Required |
| Your address | β Required | β Required |
| Client name + address | β Required | β Required |
| Invoice number (unique, sequential) | β Required | β Required |
| Invoice date | β Required | β Required |
| Description of goods/services | β Required | β Required |
| Total amount due | β Required | β Required |
| Payment due date | β Required | β Required |
| Bank/payment details | β Required | β Required |
| VAT registration number | β Not applicable | β Required |
| VAT rate per line item | β Not applicable | β Required |
| VAT amount per line item | β Not applicable | β Required |
| Net total / VAT total / gross total | β Not applicable | β Required |
| Company registration number | β Sole traders only if desired | β Only if Ltd company |
UK self-employed invoice example
Here's a complete, ready-to-use self-employed invoice example. This is from Sarah Jones, a virtual assistant β not VAT registered, sole trader:
INVOICE
No. INV-2025-011
Date: 10 May 2025
Due: 24 May 2025
From
Sarah Jones Virtual Assistant
47 Primrose Avenue
Sheffield S1 4AP
sarah@sarahjones.co.uk
Bill to
Horizon Property Group
14 Enterprise Court
Sheffield S2 5GH
admin@horizonproperty.co.uk
| Description | Hours | Rate | Total |
|---|---|---|---|
| Email management & inbox organisation | 8h | Β£30 | Β£240 |
| Diary management & appointment scheduling | 6h | Β£30 | Β£180 |
| Social media post scheduling (Instagram + LinkedIn) | 4h | Β£30 | Β£120 |
| TOTAL | Β£540 | ||
Payment details
Lloyds Bank Β· Sort: 30-00-00 Β· Acc: 44556677
Not VAT registered. UTR: 1234567890. Payment due within 14 days.
VAT rules for the self-employed (UK)
You only need to register for VAT when your taxable turnover exceeds Β£90,000in any rolling 12-month period (as of 2024/25). This is a common source of confusion β it's not an annual figure, it's a rolling 12 months.
Below Β£90K turnover
No VAT registration needed. Do not add VAT to invoices. Optionally state 'Not VAT registered' so clients don't question it.
At or above Β£90K
You must register for VAT with HMRC within 30 days. From then on, charge 20% VAT on most services, collect it, and pay it to HMRC quarterly.
Voluntary registration
You can register voluntarily at any turnover level. This lets you reclaim VAT on business purchases β useful if your clients are VAT-registered businesses.
US self-employed invoicing
πΊπΈ Key differences for US freelancers
- β’ No VAT β the US uses sales tax, which varies by state and rarely applies to services
- β’ 1099 forms β if a US client pays you more than $600/year, they must issue you a Form 1099-NEC. You'll need your SSN or EIN for this
- β’ Quarterly estimated tax β self-employed Americans pay tax four times a year (April, June, September, January)
- β’ Self-employment tax β you pay both halves of Social Security and Medicare (15.3% on net earnings)
- β’ No specific invoice format law β US invoices have no formal legal requirements beyond being accurate
Payment terms best practices
Net 14(payment due in 14 days) is the standard recommendation for self-employed invoices. Here's why:
Net 7
Great for cash flow but some clients find it too tight
Net 14
Sweet spot β short enough to get paid quickly, reasonable for clients
Net 30
Common in corporate settings but punishing for sole traders
Always state your payment terms on the invoice and in your contract. If a client insists on Net 30, consider adding 5β10% to your rate to compensate for the delayed cash flow.
What to do when a self-employed client doesn't pay
Late payment affects 71% of freelancers. A systematic 4-stage approach maximises recovery while preserving the client relationship:
Friendly reminder
Most late invoices are genuine oversights. A short, polite email referencing the invoice number usually solves it.
Follow-up email
Acknowledge that they may be busy, ask for a specific payment date. Still friendly but firmer.
Formal notice
Reference the Late Payment of Commercial Debts Act 1998. State you will add statutory interest (8% + Bank of England base rate) if not paid within 7 days.
Final demand / legal action
Send a formal letter before action. If still unpaid, consider small claims court (up to Β£10,000 in England & Wales) or a debt collection agency.
π Let Chaser automate all four stages
Chaser sends the right email at the right time β automatically and in your name. You set it up once and never think about chasing again. Free for up to 3 active invoices.
Start free βSelf-employed invoice software: 4 options compared
| Tool | Best for | Free plan | Auto-chasing |
|---|---|---|---|
| Chaser | Invoicing + automated payment chasing | Up to 3 invoices | β Yes β 4-stage email sequence |
| Wave | Accounting + invoicing | Unlimited invoices | β No |
| PayPal Invoicing | One-off invoices, simple payments | Free | β No |
| Google Docs | Simple one-time invoices | Free | β No |
FAQs: self-employed invoicing
Can a self-employed person write their own invoices?
Yes, absolutely. You don't need an accountant or software to create an invoice. You can write one in a Word document or Google Docs. Just make sure you include all required fields (name, date, invoice number, description, total, payment details).
Do I need a company number on my self-employed invoice?
No. Only limited companies are required to display a Companies House registration number on their invoices. Sole traders can simply use their name and address.
How do I handle expenses on a self-employed invoice?
If you've incurred reimbursable expenses (travel, materials, software), list them as separate line items below your service fees. Label them clearly (e.g., 'Reimbursable expenses β train tickets LondonβManchester: Β£84'). Keep receipts for everything.
Can I invoice in a foreign currency as a self-employed person?
Yes. State the currency clearly on the invoice (e.g., USD 1,500 or EUR 900). For UK tax purposes, you'll need to convert the amount to GBP using the exchange rate on the invoice date. HMRC accepts the HMRC average exchange rates for simplicity.
How many copies of each invoice do I need to keep?
You should keep one copy of every invoice you issue. HMRC requires you to keep records for at least 5 years after the 31 January Self Assessment filing deadline. A digital copy (PDF) is fine β you don't need paper.
π Self-employed invoicing, sorted
Chaser creates professional PDF invoices and automatically chases late payers for you β free for up to 3 invoices, no credit card needed.
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