All the sales and purchases of a business are recorded. An invoice makes available the details about a sale, including the business name, address, quantity, costs, and applicable tax rate. Efficient invoicing measures are critical for the financial health of a company. It is imperative to capture all the details correctly and reflect the terms of the contract such as payment terms including the credit period. The contract terms give information regarding the amount which is due and payment date. At the top of an invoice, the following details are entered:

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  • Seller’s company name
  • Seller’s address
  • Seller’s contact details
  • Invoice number
  • Invoice date
  • Customer name
  • Customer address

A simple layout with the word “Invoice” on the top followed by business details and customer name form the basic invoice details. In the middle, the description of the services / products along with the price per products, form the computing section of an invoice. Each invoice should be referenced with a unique invoice id or number which will create a unique entry in the books of account. The middle part of an invoice describes the services / products due for payment:

  • The service / product sold
  • Net amount excluding the Value added tax (VAT) (if applicable – as certain services may be exempt)
  • Gross amount inclusive of VAT
  • Details of expenses

At the bottom of the invoice:

  • Details of payment terms
  • Seller’s VAT number
  • Seller’s registration number

A seller should clearly define the terms of payment to avoid any confusing with the valuable customer. The terms of payment can be:

  • Mode of payment (by cash, by draft, by cheque along with account details, or by bank transfer along with bank account and sort code)
  • Credit period e.g. payment to be made within 15 or 30 days from the date of invoice

The company registration number should also be mentioned along with the VAT registration number of the business.

Electronic software or accounting system such as Nomisma Solution can take care of the administrative work. Invoice number and invoice generation will be done automatically and will reduce the number of heads deployed to a manual process. Some contractors and freelancers might have a preference to submit their invoices in .pdf format to keep the details protected, while others may add addition payment terms such as they reserve the right to charge penalties or interest on late payment in accordance with the late payment legislation



  • Invoice Numbering :Mode of payment (by cash, by draft, by cheque along with account details, or by bank transfer along with bank account and sort code)
  • Name :Credit period e.g. payment to be made within 15 or 30 days from the date of invoice
  • VAT :The accurate value added tax (VAT) should be charged. Some services might fall under the exemption category
  • Copies :Copies of all the invoices must be kept, even if it is a cancelled invoice. Electronic copies are all valid but the business must ensure that there is a robust backup system in place
  • Payment Terms :Businesses should carefully draft their payment terms. Payment terms should include exact dates and clearly define the credit period
  • Order Number / Reference :If a customer generates an electronic purchase order, the seller must ask for the order number and mention it on the invoice. This is updated in the customer’s system with the invoice details automatically when the order is delivered. This is very common with big clients
  • Bank Details :Bank details along with the relevant codes should be mentioned on the invoice to make the processing of bank transfers is easy
  • Record Keeping :Business can use online bookkeeping or accounting software like Nomisma Solution. Doing so will reduce the manual work and along with invoice generation all other accounts will be automatically updated. In case businesses don’t want to opt for an online accounting system they will have to keep a record of all the invoices. Key items to be noted are:
    • Date of Invoice
    • Date of Payment
    • Invoice total including VAT
    • Invoice number
    • Name of the customer
    • Product description or service details


Limited Company Invoice Template No VAT Sole Trader Invoice Template VAT Registered Sole-Trader Invoice Template No VAT


One of the most imperative things individuals need to do when they are working as a freelancer / contractor is to send an invoice to their clients in a timely manner and also take care of the fact that the invoice covers all the necessary details and is consistent. To help owner managed businesses and freelancers, DNS Accountants help our clients with giving them free invoice templates and access to our online accounting system at a nominal fee to make sure our clients don’t have any incorrect information and they don’t need to worry about their invoice number tracking and VAT registration.


  • Sole Trader Invoice Template
  • Limited Company Invoice Template
  • Freelancer and Contractor Invoice Template
  • Self Employed Invoice Template
  • Freelance Invoice Template
  • Simple Invoice Template
  • Blank Invoice Template


DNS Accountants offers a low cost, fixed accounting fee package to all the clients with excellent customer support. All our accountants specialize in providing accounting and bookkeeping services to owner managed business, sole traders, freelancers, private individuals and contractors. All our accountancy services include:

  • Unlimited access to all accounts
  • Ongoing advice on business and cash flow management
  • Tax planning advice
  • Updates and reminders on tax deadline
  • Access to our online accounting software at a nominal fee

DNS Accountants has a skilled team of taxation and accounting professionals and offers a complete range of accounting services, including invoice management, to individuals across the United Kingdom. DNS has a strong track record of supporting owner managed business and individuals and helping them with bookkeeping and accounting. DNS is a well-known firm of CA’s or ACA’s with operations across the United Kingdom. The firm’s learned team focuses on helping people with their accounts and other services such as bookkeeping, accounts management, self-assessment, business start-up, payroll-management and taxation advisory. The firm is very ethical & delivers unmatched customer service and consistent support to the clients. At DNS, we are constantly in touch with our clients. DNS Accountants are the best for tax credit support as:

  • We offer services at a FIXED price
  • Service, Consistency and Transparency – The customers know exactly what they are being billed for
  • Certainty on the tax base
  • Reduce the tax base

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DNS Accountants offers taxation & accounting services to private individuals and owner managed small businesses. Our learned team of CAs / ACA and tax accountants helps clients with services ranging from bookkeeping to payroll to tax planning, and filing tax returns. DNS Accountants help clients focus on maximizing their wealth.

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