A limited company contractor invoice should identify your company and client, describe the work supplied, state the amount due and explain when and how to pay. Use the blank template below as a starting point, then adapt it to your contract and whether your company is VAT-registered.
Why a limited company invoice is different
When you trade through a limited company, the company—not you personally—is usually the supplier named on the invoice. The invoice should therefore use the company’s correct legal name and business details, and the client should be the organisation that agreed to buy the services. This helps the client match the bill to its contract, purchase order and payment records.
An invoice is a request for payment, not a replacement for the underlying agreement. Your contract or statement of work should set out matters such as the scope of services, rates, delivery arrangements and any agreed expenses. The invoice records what you are charging for a particular period or piece of work. If the contract requires a purchase order number, timesheet approval or a particular billing address, include or follow those instructions.
In the UK, an incorporated company generally needs to show specified company particulars on its business documents. Including its registered name, company registration number, place of registration and registered office address on invoices is a practical way to make the document identifiable. Check current Companies House guidance for the requirements that apply to your company and documents.
What to include on the invoice
A useful invoice is complete enough for the client’s accounts team to verify it without asking you to resend it. For a typical UK contractor invoice, include:
- Your limited company’s legal name, registered office address, company number and contact details.
- The client’s correct legal or trading name and the billing address they have given you.
- A unique invoice number, the invoice date and, where relevant, the date the work was supplied.
- A clear description of the services, the period covered, and the quantity or time charged.
- The agreed rate, subtotal, any separately identified expenses, applicable VAT and the total payable.
- Payment terms, a due date or a clear calculation of when payment is due, and payment instructions.
- Any client reference, purchase order number or approved timesheet reference required by the client.
Keep the description specific enough to connect the charge to the agreed work. For example, “UX design services, 1–15 October, 8 days at £450 per day” is more useful than “consultancy”. Avoid including confidential project details that are not needed to identify the work.
Limited company contractor invoice template
Copy the blank fields into a document and complete the relevant details. Remove optional fields that do not apply, and check the finished invoice against your contract and the client’s billing instructions.
| Field | Enter your details |
|---|---|
| Supplier’s limited company name | |
| Registered office address and contact details | |
| Company registration number and place of registration | |
| VAT registration number, if applicable | |
| Bill to: client name and billing address | |
| Invoice number | |
| Invoice date and supply date or work period | |
| Purchase order or client reference, if required | |
| Description of services or expenses | |
| Quantity or hours/days and agreed rate | |
| Subtotal before VAT | |
| VAT rate and VAT amount, if applicable | |
| Total amount due | |
| Payment due date and payment terms | |
| Account name and payment instructions |
Sample — fictional details only: Supplier: Example Field Services Ltd, 10 Sample Lane, Bristol; company number: SAMPLE; VAT number: SAMPLE ONLY. Bill to: Harbour Design Studio Ltd. Invoice: EFS-2026-014, dated 20 October 2026, for services supplied 1–15 October 2026. Description: Project support, 2 days at £500 per day. Subtotal: £1,000. VAT at 20%: £200. Total due: £1,200. Payment terms: 14 days from invoice date. All names and identifiers in this sample are invented and must not be used as real company details.
How to number and send invoices
Use a consistent numbering system that makes each invoice distinguishable. A simple sequence such as 001, 002 and 003 can work; a prefix and year, such as ABC-2026-001, can make filing easier. The sequence does not need to reveal how many clients you have. Do not reuse a number for a different invoice, and keep a record of cancelled or corrected invoices so your files explain any gaps.
Before sending, compare the invoice with the contract, approved time records and any purchase order. Confirm that the recipient is the correct legal entity, the billing email or portal is right, and the amount matches the agreed rate. Save a copy of the invoice and the evidence that supports it, such as a timesheet approval or delivery confirmation. If you need to correct an invoice after issuing it, make the correction traceable rather than silently overwriting the original record; the appropriate method can depend on the error and VAT status.
Send the invoice promptly after the agreed billing milestone. A client may have a monthly processing cut-off, so ask when invoices must arrive and whether its accounts team accepts attachments, portal submissions or another format. A correctly prepared invoice can still be delayed if it is sent to the wrong place or lacks a required reference.
VAT: what changes when you are registered
If your company is VAT-registered and the supply is subject to VAT, the invoice needs the relevant VAT information. A full UK VAT invoice generally includes the supplier’s VAT registration number, a unique invoice number, the invoice date, the tax point where required, the customer’s name and address, a description of the goods or services, amounts excluding VAT, the VAT rate and the VAT amount. The exact information can vary with the transaction and invoice type, so check the current HMRC requirements for your circumstances.
Show the VAT rate and amount clearly, rather than combining VAT with the service fee in a way that hides the calculation. If you charge different VAT rates on different lines, show the amounts in a way that lets the client see which rate applies to each relevant charge. A VAT-registered business may be able to issue a simplified VAT invoice for certain low-value supplies; the conditions and required details are specific, so do not assume that every invoice can use the shorter format.
If your company is not VAT-registered, do not add a VAT charge or describe the invoice as a VAT invoice. You can still show the amount payable, but label it as the total rather than presenting a VAT amount you are not entitled to charge. VAT treatment can depend on the type and location of the supply, especially for international clients or unusual services. If your situation needs tax or legal interpretation, ask a qualified professional.
Rates, expenses and payment terms
Make the calculation easy to check. If you charge by the day or hour, show the number of units, rate and resulting line total. For a fixed-fee milestone, name the milestone and state the agreed fee. For example, “Testing phase delivery, fixed fee £1,800” is clearer than a single unexplained amount. The invoice should reflect the price agreed with the client, not introduce a new rate after the work is complete.
List reimbursable expenses separately from your service fee and identify what each expense relates to. Whether an expense can be recharged, how it should be evidenced and how VAT applies are matters to confirm against your agreement and the relevant rules. Do not assume that calling a cost a “disbursement” automatically gives it a particular VAT treatment.
State the payment deadline in plain language, such as “due within 14 days of the invoice date”, if that matches the agreed terms. Avoid vague wording such as “payment on receipt” when the contract sets a specific period. Include the company account name and the payment details the client needs, and provide a reference to use if helpful. Do not put personal bank details on an invoice when the company is the contracting supplier unless there is a valid, agreed reason to do so.
Common invoice problems and how to prevent them
Small inconsistencies can cause an invoice to be queried, rejected or paid late. The most common issues are often administrative rather than complicated accounting errors:
- Wrong customer entity: Check whether the contract is with a parent company, subsidiary or another client entity, and bill the contracting party as instructed.
- Missing purchase order: Add the client’s required PO or project reference before sending. Do not invent one if none has been provided.
- Unclear work period: Give dates or a milestone name so the client can identify what the charge covers.
- Arithmetic that does not reconcile: Recalculate line totals, subtotal, VAT and total due, and check that rounding has not changed the final amount.
- Unexpected expenses: Confirm that the contract permits the charge and that any required receipts or approvals are available.
- Unclear correction: Keep a clear trail when correcting or replacing an invoice, including which earlier document the change relates to.
IR35 status and invoicing are related only in the broad sense that both concern a contractor engagement. An invoice does not determine employment status or change the terms of an engagement; it documents a charge for services. Do not treat the wording on an invoice as a substitute for reviewing the actual working arrangement.
Keeping invoice records and choosing a format
A spreadsheet, word-processing document or accounting record can all be used to prepare an invoice if the finished document is readable, complete and retained properly. Choose a format that makes it easy to maintain unique numbers, calculate totals and find previous invoices. A PDF is often convenient for sending because its layout is less likely to shift, but follow the client’s submission rules if they require a particular format or portal.
Keep copies of invoices alongside relevant contracts, purchase orders, approvals, expense evidence and payment records. Good records help you answer a client query and reconcile what was billed with what was received. The period for retaining business and tax records depends on the rules that apply to the company, so check current HMRC guidance or ask a qualified accountant about your company’s record-keeping obligations.
For occasional billing, the blank template above may be enough. If you issue many invoices or have multiple VAT rates, currencies or approval steps, a structured invoicing process may reduce manual mistakes. Whatever method you choose, review the final document before sending it; a template does not verify the underlying contract terms or tax treatment for you.
Frequently Asked Questions
Does a limited company contractor invoice need a company number?
Including the company registration number, registered name, place of registration and registered office address is sensible for a UK company’s business documents. Check current Companies House guidance for the precise requirements that apply to your invoice and company.
Can I invoice a client before I am VAT-registered?
You can invoice for services without being VAT-registered, but you must not charge VAT unless entitled to do so. If registration may be required or the supply has unusual VAT circumstances, check current HMRC guidance or ask a qualified tax professional.
Should I put my own name or my company name on the invoice?
If the limited company is the supplier under the contract, use the company’s legal name as the supplier. You can include your name as a contact person, but that does not replace the company details.
Can I invoice by the hour or day?
Yes, if that matches your agreement. State the number of hours or days, the agreed rate, the work period and the calculated line total so the client can verify the charge.
What should I do if an invoice has the wrong amount?
Contact the client promptly and issue a clearly identified correction using a method suitable for the error and your VAT status. Retain the original and corrected records rather than changing the only saved copy without an audit trail.