Question 1

What has to be on an invoice to be valid?

Accepted Answer

At minimum: the word 'Invoice', a unique invoice number, the date issued, your name/business and address, your client's name and address, a clear description of what's being billed, the amount due (with any tax shown separately), the currency, and how to pay. If you're VAT- or sales-tax registered, include your tax ID and the tax breakdown.

Question 2

What's the difference between an invoice, a receipt, and a quote?

Accepted Answer

A quote is an offer of price before work begins. An invoice is a request for payment after work is done (or for goods delivered). A receipt is proof that payment has been received. They're three different documents at three different stages of a sale.

Question 3

Do I need to register a business to send invoices?

Accepted Answer

In most countries, no. Sole traders and freelancers can invoice under their own name. You'll usually need to register only once you cross a turnover threshold or want to trade as a limited company. Check your local rules — in the UK, for example, you must register with HMRC for self-assessment but can invoice immediately.

Question 4

Can I invoice as a freelancer without a company?

Accepted Answer

Yes. Use your full legal name in the 'From' section, your home or work address, and a unique invoice number. You're personally responsible for declaring the income on your tax return.

Question 5

How should I number my invoices?

Accepted Answer

Use a unique, sequential number with no gaps — for example INV-0001, INV-0002, INV-0003. Tax authorities require a clear sequence so missing or duplicated numbers can be spotted. You can prefix with the year (2026-001) or a client code if it helps you stay organised.

Question 6

Can I restart invoice numbers each year?

Accepted Answer

Yes, as long as the sequence is still unique and consistent. A common pattern is YYYY-NNN (2026-001, 2026-002…) which resets each January. Just don't restart in the middle of a year or reuse old numbers.

Question 7

What date should I put on the invoice?

Accepted Answer

Use the issue date — the day you actually send the invoice. If the work was done across several days, that's fine; the invoice date is the billing date, not the work date. The due date is calculated from the issue date.

Question 8

What's a reasonable due date?

Accepted Answer

Net 14 or Net 30 (payment within 14 or 30 days) is standard for small businesses and freelancers. Faster terms (Net 7 or 'on receipt') are common for one-off jobs with new clients. Agree the terms upfront so the due date doesn't surprise anyone.

Question 9

Do I need to charge VAT or sales tax?

Accepted Answer

Only if you're registered. In the UK you must register for VAT once your taxable turnover exceeds the current threshold (or voluntarily before that). In the US, sales tax depends on your state and whether you have nexus there. If you're not registered, simply don't add tax — your invoice total is the net amount.

Question 10

What if my client is in another country?

Accepted Answer

Cross-border rules vary. For UK B2B services to an EU business, the reverse charge usually applies and you don't add VAT — but you should note 'Reverse charge applies' on the invoice. For physical goods, customs and import duties may apply. When in doubt, check with an accountant.

Question 11

Do I need to include my VAT or tax ID?

Accepted Answer

Yes, if you're registered. Put your VAT/GST/tax ID near your business details. If you're billing a VAT-registered business in another country, include their tax ID too.

Question 12

How long do I need to keep invoice records?

Accepted Answer

Usually 5–7 years, depending on your country. UK businesses must keep records for at least 6 years. Keep both the invoices you send and the ones you receive — tax authorities can ask to see them during an audit.

Question 13

Which currency should I invoice in?

Accepted Answer

Usually the currency of the country you're based in, or the one you agreed with your client. If you invoice in a foreign currency, make the currency code (USD, EUR, GBP) explicit on the invoice — the symbol alone ($) is ambiguous between US, Canadian, Australian dollars and more.

Question 14

How do I ask for a deposit or partial payment?

Accepted Answer

Send a separate deposit invoice up front (e.g. 'Deposit — 30% of project total') with its own invoice number. When the work is complete, the final invoice should subtract the deposit already paid so the balance due is clear.

Question 15

Should I add late fees? How much?

Accepted Answer

Yes, if you want to encourage on-time payment. Common practice is 1.5% per month or a fixed reminder fee. In the UK, the Late Payment of Commercial Debts Act lets businesses charge statutory interest plus a fixed sum. State the late fee policy in your terms before the invoice is overdue.

Question 16

What payment methods should I offer?

Accepted Answer

Bank transfer is the cheapest for both sides and best for larger amounts. Card payment links (Stripe, PayPal) are more convenient and often get paid faster but carry a 1.5–3% fee. Offer two or three options so the client can pick what suits them.

Question 17

How do I show a discount on an invoice?

Accepted Answer

Apply the discount as a percentage of the subtotal, then show it as a clear line ('Discount −10%') before calculating tax and the final total. Keep the original line items at full price so the discount is visible.

Question 18

Should I send a PDF or a payment link?

Accepted Answer

Both, ideally. A PDF is a professional record the client can file and forward to their accounts team. A payment link inside the email (or embedded in the PDF) makes it one click for them to pay. invoicemakerfree.co.uk lets you do both in the same flow.

Question 19

Should I add my logo and signature?

Accepted Answer

A logo helps with brand recognition and makes the invoice feel professional. A signature is optional but a nice touch for personal services. Neither is legally required — what matters is the business and contact details.

Question 20

What should the email say when I send an invoice?

Accepted Answer

Keep it short: greet the client, mention what the invoice is for, give the total and due date, and link to or attach the PDF. Example: 'Hi Sam, please find invoice INV-0042 attached for £1,200, due by 15 May. Thanks for the work this month — let me know if anything looks off.'

Question 21

Can I resend the same invoice as a payment reminder?

Accepted Answer

Yes. Don't change the invoice number or amount — resend the original with a friendly reminder note in the email. Only if the work or amount changes do you need a new invoice or a credit note.

Question 22

What do I do if a client doesn't pay?

Accepted Answer

Send a polite reminder a few days after the due date. If it stays unpaid, follow up weekly with increasing firmness. After 30 days overdue, mention late fees and your next steps. Most disputes resolve at this stage — for persistent non-payment, small claims court or a debt-collection service is the next option.

Question 23

Can I edit an invoice after I've sent it?

Accepted Answer

Once an invoice has been sent and recorded by the client (especially for tax), you shouldn't quietly edit it. Instead, issue a credit note that cancels or adjusts the original invoice, then send a new corrected invoice with a new number.

Question 24

How do I cancel an invoice?

Accepted Answer

Issue a credit note for the full amount of the invoice, referencing the original invoice number. The credit note cancels out the original in your books. Don't simply delete the invoice — the gap in the sequence will look suspicious in an audit.

Question 25

What's a credit note?

Accepted Answer

A credit note is a 'negative invoice' — it reduces the amount owed by your client. Use it to refund overpayments, fix mistakes on a previous invoice, or apply a goodwill discount after the fact. Like invoices, credit notes need their own unique number.

Invoice FAQ

The basics

Numbering & dates

Tax & compliance

Money & payment

Format & sending

When things go wrong

Ready to create an invoice?