How to Invoice Without VAT in the UK
If you're a freelancer or small business and you're not VAT registered, invoicing is simpler — but there are still rules you need to follow.
This guide explains exactly what to include on a UK invoice when you're not VAT registered, what you must leave out, and when you'll need to think about registering.
Do You Need to Be VAT Registered?
In the UK, VAT registration is compulsory once your taxable turnover exceeds £90,000 in any 12-month rolling period (as of 2026).
Below that threshold, VAT registration is voluntary. Most freelancers and small businesses starting out are not VAT registered — and that's perfectly legal.
What to Include on a Non-VAT Invoice
Even without VAT, your invoice must still include certain details to be valid:
- Your name (or business name) and address
- Client's name and address
- A unique invoice number — sequential, for your records
- Invoice date
- Description of the goods or services provided
- The amount due
- Payment terms — e.g. "Payment due within 30 days"
- Your payment details — bank account, sort code, or preferred method
That's it. No VAT number. No VAT breakdown. No mention of VAT at all.
What NOT to Include
If you're not VAT registered, do not:
- Add a VAT number (you don't have one)
- Show a VAT line or percentage on your invoice
- Describe your prices as "ex-VAT" or "inc VAT"
Adding VAT to an invoice when you're not registered is a criminal offence under UK law. Your clients pay the amount you charge — no more.
Example Invoice Layout (Non-VAT Registered)
INVOICE
From: Jane Smith, 12 High Street, Bristol, BS1 1AA
To: Acme Ltd, 5 Business Park, London, EC1 2AB
Invoice Number: INV-0042
Date: 6 April 2026
Due Date: 6 May 2026
Services:
- Website copywriting (April 2026) .............. £850.00
Total Due: £850.00
Payment: BACS
Bank: Barclays | Sort Code: 20-00-00 | Account: 12345678
Clean, clear, and legally compliant — no VAT required.
Can You Mention That You're Not VAT Registered?
Some freelancers add a line like "Not VAT registered" to their invoices for clarity, especially when dealing with VAT-registered businesses. This isn't a legal requirement, but it can be helpful to avoid confusion.
When Should You Consider Voluntary VAT Registration?
Even below the £90,000 threshold, voluntary registration can make sense if:
- Your clients are mostly VAT-registered businesses (they can reclaim the VAT you charge)
- You have significant VAT-able expenses (you can reclaim input tax)
- You want to appear more established
However, it also adds admin: quarterly returns, record-keeping, and potentially higher prices for non-VAT-registered clients. It's worth speaking to an accountant before registering voluntarily.
What Happens When You Cross the Threshold?
Once your taxable turnover exceeds £90,000 in a 12-month period, you must register for VAT within 30 days. From that point, you'll need to:
- Register with HMRC for VAT
- Add your VAT number to all invoices
- Charge VAT on applicable services
- File quarterly VAT returns via Making Tax Digital
Until you're registered, you invoice as before — no VAT.
Create a Professional Non-VAT Invoice for Free
Billdrop is a free invoice generator built for UK freelancers. Create professional invoices with your branding, download as PDF, and send to clients in minutes — no account needed.
Whether or not you're VAT registered, Billdrop handles it correctly.