Billing

The self-employed person may issue invoices from the registration date and are not obliged to indicate the UTR number on their invoices. The general contractor may request, however, to indicate the UTR number on their invoices if they work in the CIS (Construction Industry Scheme).

Normally, self-employed people are not VAT registered!

Thus, only invoices without VAT may be issued, even without the VAT field. Because, if your invoice contains the VAT field and you write zero in it, it would look like a VAT registered business had sold a product or service which is subject to 0% VAT rate from a tax perspective, and this could be misleading.

In the United Kingdom, every revenue must be invoiced or recorded.

It happens with self-employed people working as sub-contractors or for agencies that the general contractor or the agency does not request an invoice because the statement, they issue contains the amounts and the occurring deductions. These must always be kept, but these statements do NOT replace the income invoices of your business.

To issue invoices, you may use an invoice format you have created, a billing software, or buy an invoice book at any post office or stationery store.

To avoid confusion and inconveniences, we recommend using our internally developed, multi-language, easy-to-use online billing, and accounting systems. The systems are 100% digital, so you can forward your invoices to your customers electronically. Your invoices will be kept digitally and can be queried and printed easily at the end of the tax year to facilitate Self Assessment. You can find more information on the system in the column on the right.


VAT invoicing

If you would like to issue VAT invoices, you must carefully consider whether or not it is worth submitting a VAT registration; you can get more information on this in our website’s VAT menu.

If your business does not have a VAT registration, then you cannot charge VAT amounts in any form on the services or products offered, and you cannot request VAT refund after purchased services or products subject to VAT.

As long as you have not VAT registration number, only invoices with no VAT amounts may be issued, and even the VAT field must not be a part of your invoice.

After a successful VAT registration, you will get the VAT registration number, and from that point on you may apply the VAT amount related to the product or service offered.

Current VAT rates:

Standard 20 % Reduced 5 % Zero 0 %

Attention!

It is always the self-employed person’s responsibility to confirm how much VAT is calculated for the product of service they plan to offer. You may find more information on the classification of products and services:

https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services

Help

Not issuing income invoices is a felony and will be penalised!

You are not obliged to indicate the UTR number on your invoices in every case

Normally, self-employed people are not VAT registered!

As long as you have no VAT number, you are only allowed to issue invoices with no VAT!


ACS Invoicing subscription
  • Easy and simple invoice records, creation
  • Digital notifications for your customers before and after invoice due dates
  • Option for immediate correction
  • Tax audit safe
  • Hungarian interface and customer service in England
  • You can query your full year’s income and expenses in just a few seconds
  • With the use of the system, you can get precise information on the current financial status of your business anytime.
  • Many other important functions.