Sole Trader Invoice Template
As a sole trader, your invoice comes from you personally, even if you use a trading name. Show your own name (and trading name if you have one), your contact address, and leave VAT off unless you're VAT-registered. Invoice Today does this for free and gives you a PDF.
This page covers the points that are specific to sole traders.
Your name and trading name
If you trade under a business name, many sole traders show both, for example "Alex Example trading as Example Gardening". Put this in the business name field. GOV.UK has guidance on business names and what sole traders should put on invoices.
Invoicing without VAT
Many sole traders aren't VAT-registered. In that case, don't add VAT and don't show a VAT number; your total is simply the sum of your line items. Once your taxable turnover goes over the VAT registration threshold you must register. Check GOV.UK for the current figure.
Invoices and Self Assessment
- Your invoices help you work out your income for your Self Assessment tax return.
- Keep a copy of every invoice you issue, plus a log of what's been paid.
- Check GOV.UK for how long you must keep records.
- Invoice Today doesn't store invoices, so keep your PDFs in one folder per tax year.
Using your home address
You need an address customers can contact you at. Some sole traders prefer not to publish their home address and use a business address service instead. It's your choice; just make sure the address works for post.
A simple sole trader routine
- Invoice as soon as the job is done.
- Use one number sequence, such as 0001, 0002.
- Note each invoice and payment date in a spreadsheet.
- Put money aside for tax as payments come in.
Frequently asked questions
This is general information, not tax or legal advice. Check your own requirements with an accountant or HMRC.