How to Invoice a Limited Company in the UK
Invoicing a limited company is slightly different from invoicing an individual — companies have more formal requirements, longer payment terms, and often specific processes for approving invoices. Get it right and you'll get paid faster.
Here's everything you need to know.
What to Include on an Invoice to a Limited Company
UK law requires invoices to contain certain details. When invoicing a company, include:
- Your name (or business name) and address
- Your VAT number — if you're VAT registered
- The company's full registered name (e.g. "Acme Ltd" not just "Acme")
- The company's address — often the registered office, or the billing address they specify
- A unique invoice number — sequential, for record-keeping
- Invoice date
- Description of goods or services — be specific
- Amount before VAT (if applicable)
- VAT rate and amount (if VAT registered)
- Total amount due
- Payment terms — e.g. "Net 30" or "Due within 14 days"
- Your payment details — bank name, sort code, account number (or BACS/CHAPS reference)
If the company gives you a Purchase Order (PO) number, include it prominently on your invoice. Many finance teams won't process invoices without a matching PO reference.
Should You Include VAT?
That depends on whether you are VAT registered — not whether the company is.
- If you're VAT registered: You must charge VAT on applicable services and include your VAT number
- If you're not VAT registered: Do not add VAT — just invoice for the net amount
If the company you're invoicing is VAT registered, they can reclaim the VAT you charge — so it costs them nothing extra. This makes VAT registration less of a barrier when working with larger clients.
Example Invoice to a Limited Company
INVOICE
From: Jane Smith Consulting, 12 High Street, Bristol, BS1 1AA
VAT Number: GB 123456789
To: Acme Technologies Limited
5 Business Park, London, EC1 2AB
PO Reference: PO-2026-0842
Invoice Number: INV-0087
Invoice Date: 6 April 2026
Payment Due: 6 May 2026 (Net 30)
Services:
- UX audit and report (March 2026) .............. £2,000.00
- VAT @ 20% ...................................... £400.00
Total Due: £2,400.00
Payment via BACS:
Bank: HSBC | Sort Code: 40-00-01 | Account: 87654321
Reference: INV-0087
Getting Paid on Time
Limited companies can have slow payment cycles — finance teams, approval chains, and payment runs all add time. Here's how to minimise delays:
1. Use the right contact Send your invoice directly to the person who approved the work — and CC the finance/accounts payable team if you know it.
2. Include a PO number if one was issued Finance teams match invoices to purchase orders. Missing PO = delayed payment.
3. Set clear payment terms from the start Agree payment terms before you start work. "Net 30" is standard. "Net 14" or "7 days" is reasonable for smaller companies.
4. Reference the Late Payment of Commercial Debts Act UK law entitles you to statutory interest (8% + Bank of England base rate) on late business-to-business payments. You don't always need to chase it — but mentioning it in your payment terms focuses minds.
5. Follow up promptly Send a polite reminder a few days before the due date, then again on the day it becomes overdue.
IR35 Considerations for Contractors
If you're a contractor invoicing a limited company through your own limited company, be aware of IR35. HMRC may consider you an employee for tax purposes depending on your working arrangement.
This doesn't change what goes on your invoice, but it affects how the engagement is structured. If in doubt, speak to a specialist contractor accountant.
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