Are Your Invoices Legally Compliant?
- Brian Pusser
- Jun 7
- 2 min read
Updated: Jun 21
HMRC Updates Its Guidance on Invoice Requirements
If you issue sales invoices, now’s a good time to double-check they include everything the law requires — especially with HMRC’s recently updated guidance in its VAT Traders’ Records Manual (VATREC5010).
What’s New?While the legal rules haven’t changed since 2007, HMRC has now clarified what information you must include. The new guidance is clearer, laid out in a helpful Q&A format with extra notes for added clarity.
HMRC says the invoice requirements “have been set out more clearly” — so make sure your invoices match the updated expectations.
Invoice Numbering – Keep It SequentialPreviously, HMRC insisted on “a unique sequential number” for each invoice. Now they confirm it’s fine to use a mix of letters and numbers — as long as the sequence is logical and continuous.
Acceptable Examples:
Monthly Prefix: MAR0065, MAR0066, APR0067...
Customer Ref + Sequence: 0475/1286, 0324/1287, 0862/1288...
Tip: Cancelled or unused invoice numbers should be documented and retained, so you can explain any gaps in the sequence during an HMRC check.
The Reverse Charge – Don’t Forget the WordingIf you work in construction or other industries where the reverse charge applies, remember:You don’t charge VAT on your invoice — but you must clearly state that your customer is responsible for accounting for it.
Required Wording:“This supply is subject to the reverse charge.”
Tip: Your invoice should also show the VAT amount the customer must declare, or the applicable VAT rate for each item.
Stay Compliant, Stay ConfidentWhether you’re invoicing for building work or bookkeeping, getting the details right can help avoid penalties and confusion. Now’s a great time to review your invoice template!
Need help checking your invoices meet the latest HMRC standards?
👉 Get in touch — we’re happy to help.
