Sole Trader Guide · United Kingdom
You don't need to form a company, hire an accountant, or buy special software to invoice clients as a sole trader in the UK. Here's exactly what HMRC expects and how to get paid faster.
Updated June 2026 · HMRC compliant · UK sole traders and self-employed
As a sole trader, invoice under your own name with the date, description of services, total amount, and your sort code and account number. If you're VAT registered (turnover over £90k), add your VAT number, show VAT at 20% separately, and label it VAT Invoice. That's it.
The VAT registration threshold in the United Kingdom is £90,000 in taxable turnover in any rolling 12-month period. That's your total income before expenses, not your profit.
| Annual turnover | VAT required? | Invoice type |
|---|---|---|
| Under £90,000 | No — optional | Standard invoice — no VAT line |
| Over £90,000 | Yes — must register | VAT Invoice — 20% VAT shown separately |
| Voluntary | Optional under £90k | VAT Invoice — 20% VAT |
Most part-time sole traders, freelancers, and those just starting out are under £90,000 and don't need to register. If you're unsure, add up all your invoices from the last 12 months — if they're under £90k you're not required to register.
Never charge VAT if you're not registered for it. Charging VAT without being registered is an offence under UK VAT law. If you're not registered, simply omit any VAT reference from your invoices.
Here's what a standard invoice looks like for a sole trader under the £90k threshold:
| Description | Total |
|---|---|
| House clean — 22 Beech Road (3 hrs) | £135.00 |
| Window cleaning — internal and external | £65.00 |
Notice — no VAT number, no VAT line, and it says "Invoice" not "VAT Invoice". This is correct for a sole trader not registered for VAT.
Common question
If you're not VAT registered, the most common mistake is writing "VAT: £0" or "VAT: N/A" on your invoice. Don't do this — the correct approach is to omit any VAT reference entirely.
Your invoice shows a total amount only. If clients ask why there's no VAT, you can explain you're not registered. You can optionally add a note such as "VAT not applicable — not a VAT-registered business" but this is not required.
A client who is VAT registered cannot reclaim any VAT from an invoice from a non-VAT registered supplier — because no VAT was charged. This is normal and legal. Your clients understand this.
No. Sole traders do not need to register with Companies House to send invoices. You invoice under your personal name or a trading name. Companies House registration is only required if you form a limited company.
You do, however, need to register as self-employed with HMRC for Self Assessment — by 5 October in your business's second tax year at the latest. Your Unique Taxpayer Reference (UTR) is what you use for tax purposes; a VAT number is separate and only applies once you register for VAT.
You must register for VAT once your turnover hits £90,000 in any rolling 12-month period. This is your total income, not profit. You have 30 days from the end of the month you exceeded the threshold to register with HMRC.
If you think you're approaching £90k, register proactively. Voluntary registration below £90k can also be worthwhile if you have significant expenses with VAT — registering lets you reclaim that VAT.
Common questions
No signup · HMRC compliant · UK made
This guide is general information for UK sole traders and is updated to reflect current HMRC guidance. It is not legal or tax advice. For advice specific to your situation, speak to your accountant or visit gov.uk.
