How to send an invoice that gets paid

Most unpaid invoices are unclear, late, missing terms, or never chased.

Fix those four. The money usually follows.

The customer cannot tell who to pay, what for, how much, or by when.

Or you send it days after you finish. Or you never follow up.

None of that needs new tools. It needs a clear bill, a due date, and a chase.

Your invoice must include:

Must be on the invoice
a unique number
your name, address and how to contact you
the customer's name and address
a clear description of what you are charging for
the date you did the work or supplied the goods (the supply date)
the date of the invoice
the amount you are charging
VAT, if it applies
the total owed

If you are a sole trader, also put:

• your own name, and any trading name you use
• an address where legal documents can be delivered to you, if you use a trading name

The invoice must also show how much they need to pay, and when.

Put how to pay on it too. Bank details. The name on the account. If they cannot see how to pay, they will not.

Do not charge VAT.

Do not put a VAT number. Only a VAT-registered business can issue a VAT invoice.

Use the list above. Leave the VAT line off. Show the total they owe.

You must use a VAT invoice when you and the customer are both VAT-registered.

Show your VAT number. Show the VAT as its own figure, not buried in the total.

HMRC’s VAT record-keeping notice also needs:

• a sequential number that uniquely identifies the invoice
• the time of supply (when you did the work)
• the date you issued it, if that is different
• your name, address and VAT number
• the customer's name and address
• a description that identifies the work or goods
• for each line: how much work or how many items, the VAT rate, and the amount before VAT
• the total before VAT
• the total VAT, in pounds
• the price of each item
• the rate of any cash discount you offer

Most goods and services are standard rate, currently 20%. Some are reduced rate, currently 5%. Check the rate that applies before you send it.

Issue the VAT invoice within 30 days of the supply.

You can set your own payment terms. That includes payment up front.

Write the due date on every invoice. Agree it in the quote first, so it is not a surprise.

If you never agree a date, the customer must pay within 30 days of getting the invoice, or of you doing the work, whichever is later.

For a bigger job, take a deposit before you buy materials. Split the rest into stages if the work runs on. Agree that in writing before you start.

Send the invoice the day you finish. The longer you wait to bill, the longer you wait to be paid.

If it goes overdue:

1. Send a short reminder. Attach the original invoice.
2. If it is still unpaid, send a firmer note.
3. Keep a dated copy of every message.

Chasing is the bit most people skip. Your assistant chases until the money lands. First £10,000, then 5%.

The paper trail is what makes the later steps simple.

These rights are for when another business is late. A private customer is a different case. Put your terms in the quote instead.

If another business is late, you can claim:

• statutory interest at 8% plus the Bank of England base rate (check the current base rate before you work it out)
• a fixed recovery sum on top: £40 for debts up to £999.99, £70 for £1,000 to £9,999.99, £100 for £10,000 or more

You cannot claim that statutory interest if your contract already sets a different interest rate.

You can choose not to charge interest. If you do add it, send a new invoice for the extra.

Use a trade invoice template so the GOV.UK fields are already there. If a business customer still has not paid, the late payment guide has the reminder wording and the next steps.

Time is what breaks it. The invoice is clear. You still do not chase. That is why the assistant exists.