A sole trader invoice must show the trader's name and any trading name, business address, a unique sequential invoice number, the issue date, a description of goods/services, the amount due, and payment terms. UK sole traders registered for VAT (mandatory above £90,000 turnover) must add their VAT number, VAT rate, and VAT amount per line; Australian sole traders need an ABN on every invoice (or clients must withhold 47%) and 'Tax Invoice' wording with GST shown when registered. UK law grants statutory late-payment interest (Bank of England base rate + 8%) on commercial debts without any contract clause.
Sole Trader Invoice Template
Reviewed by the Agiled editorial teamUpdated June 2026
Sole trader invoicing comes with rules employees never see: the UK's requirement that your own name appears alongside any trading name, the VAT fields that become mandatory the day you cross the registration threshold, Australia's ABN rule with its brutal 47% withholding penalty for non-compliance — and, on the bright side, statutory late-payment interest that UK law hands you for free. This template carries the compliant field set for sole traders in the UK, Australia, and similar jurisdictions, alongside the billing discipline any one-person business runs on. Download it in PDF, Word, Excel, Google Docs, or Google Sheets, or generate a pre-filled version below.
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Your Company Name
123 Business St, City, State 12345
billing@yourcompany.com
INVOICE
INV-0001
Bill to
Client Company
Due
Net 30
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Professional services | 15 | $90.00 | $1,350.00 |
| Travel expenses | 1 | $100.00 | $100.00 |
| Materials | 1 | $150.00 | $150.00 |
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Create online- UK VAT registration
- Mandatory above £90,000 turnover
- AU rule
- ABN on every invoice, or 47% withheld
- UK late interest
- Base rate + 8%, statutory
- Terms
- 14 – 30 days typical
What to include on a sole trader invoice
Your name and trading name together
UK rules require the sole trader's own name on the invoice alongside any business name — "Jane Okafor, trading as Brightline Bookkeeping." The pairing is the legal identity.
Unique sequential invoice number
Required by HMRC and the ATO alike — an unbroken sequence with no reuse. It's also the spine of your self-assessment or BAS records.
VAT fields, when registered (UK)
VAT registration number, the rate per line, VAT amount, and totals ex- and inc-VAT. Below the threshold and unregistered? State no VAT — don't show a rate of zero ambiguously.
ABN and 'Tax Invoice' wording (AU)
The ABN on every invoice (clients must withhold 47% from payments to suppliers without one), and 'Tax Invoice' with GST shown when registered (mandatory above A$75,000 turnover).
Description, quantities, and dates of supply
What was supplied and when — the supply date can differ from the invoice date and both matter for VAT/GST accounting periods.
Payment terms and bank details
14–30 days is customary; bank transfer details stated cleanly (sort code/account or BSB/account). Faster payment correlates with easier methods, everywhere.
Late-payment interest line (UK)
"Late payments subject to statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998." The right exists without the line — but the line makes it land.
Sole trader invoicing thresholds and standards (2026)
| Item | Standard | Notes |
|---|---|---|
| UK VAT registration threshold | £90,000 turnover / 12 months | Voluntary registration below |
| UK standard VAT rate | 20% | Reduced 5%, zero rate for some supplies |
| UK statutory late interest | BoE base + 8% | Plus fixed recovery costs £40–£100 |
| AU GST registration threshold | A$75,000 turnover | GST = 10% |
| AU missing-ABN withholding | 47% | Client must withhold |
| Typical payment terms | 14 – 30 days | |
| Record retention | UK: 5 yrs (self-assessment); AU: 5 yrs |
Thresholds and rates change with budgets and rulings — verify current figures with HMRC or the ATO. This is guidance, not tax advice.
How sole trader billing actually works
Below the threshold: simple and compliant
An unregistered sole trader's invoice is refreshingly simple: name and trading name, address, sequential number, date, description, amount, terms, bank details — no VAT/GST fields at all. The discipline that matters is the sequence and the archive: self-assessment (UK) and income reporting (AU) reconstruct from your invoice trail, and the trail is also your income proof for mortgages and tenancy checks. Watch the rolling turnover as you grow — VAT registration is mandatory from the threshold, and late registration generates back-dated liabilities.
Crossing into VAT/GST: the invoice changes
Registration transforms the document: UK invoices add the VAT number, per-line rates, the VAT amount, and ex/inc-VAT totals; Australian invoices become 'Tax Invoices' with GST shown and the ABN prominent. Pricing strategy changes too — consumer-facing trades effectively absorb some of the new tax or raise prices, while business clients reclaim it and barely notice. Invoice numbering, supply dates, and retention discipline all feed the VAT return or BAS, so the template upgrade and the bookkeeping upgrade happen together.
Getting paid: the sole trader's leverage
One-person cash flow can't absorb 60-day payers, and the law in both jurisdictions backs you: UK statutory interest (base + 8%) plus fixed recovery costs apply to late commercial payments automatically, and a quiet footer line citing the Act makes large clients' AP departments move. The practical ladder: invoice on completion day, polite reminder at due date + 3, statement with interest accruing at +14, work pause and final notice at +30. Deposits on new clients and shorter terms (14 days) do more for solvency than any collection letter.
Invoicing mistakes that cost sole trader professionals money
Trading name without your name (UK)
A business name alone doesn't satisfy UK disclosure rules for sole traders — your own name must appear. 'T/A' formatting handles it in four characters.
Missing ABN (AU)
Without an ABN on the invoice, business clients are required to withhold 47% of the payment. It's the most expensive blank field in Australian small business.
Charging VAT while unregistered
Showing VAT without a registration number is unlawful; absorbing it silently after registration shreds margin. Register at the threshold, update the template the same day.
Broken number sequences
Gaps and reused numbers turn a tax inquiry from routine into suspicious. One sequence, no exceptions, kept for the full retention period.
Not claiming late-payment interest
UK sole traders sit on a statutory right most never invoke. You needn't charge it every time — but citing it in terms changes payer behavior, and invoking it on chronic late-payers is pure mechanics, not aggression.
How to use this template
- 01
Download the template in your preferred format, or generate a pre-filled version with the download studio above.
- 02
Add your name and trading name together, your address, and (AU) your ABN.
- 03
Number invoices in one unbroken sequence and date each with issue and supply dates.
- 04
Describe the goods or services with quantities and rates.
- 05
Apply VAT/GST fields if registered — number, rate, amount, and correct totals.
- 06
State 14–30 day terms with bank details, cite statutory late-payment interest (UK), and archive every invoice for five years.
Skip this template if…
- US-based freelancers — W-9/1099 mechanics differ; use the self-employed invoice template.
- Limited companies — registered company details and different disclosure rules apply.
FAQs
What must a sole trader invoice include?
Your name (alongside any trading name), business address, a unique sequential invoice number, issue date, description of the goods or services, amounts, and payment terms. Add the VAT number and VAT breakdown if UK-registered, or the ABN and 'Tax Invoice' wording with GST if Australian-registered.
Do sole traders need to charge VAT?
Only once registered — mandatory when UK taxable turnover passes £90,000 in any rolling 12 months, optional below it. Registered traders show their VAT number, per-line rates, and the VAT amount on every invoice. Charging VAT without registration is unlawful; missing the registration deadline creates back-dated liability.
What happens if an Australian sole trader invoices without an ABN?
Business clients are required to withhold 47% of the payment ('no ABN withholding') and remit it to the ATO. The ABN belongs on every invoice — and once GST-registered (mandatory above A$75,000 turnover), invoices must be titled 'Tax Invoice' with GST shown.
Can sole traders charge interest on late payments?
In the UK, yes — by statute: the Late Payment of Commercial Debts (Interest) Act grants Bank of England base rate + 8% on late commercial payments, plus fixed recovery costs, with no contract clause required. Citing it in your terms is the polite version; invoking it on chronic late-payers is simply using a right Parliament gave you.
How long should sole traders keep invoices?
Five years is the working rule in both the UK (self-assessment records) and Australia (ATO requirements) — covering issued and received invoices. The archive doubles as your income proof for mortgages, tenancy references, and loan applications, where a clean numbered trail does the persuading.
What's the difference between a sole trader and a limited company invoice?
Identity and liability: a sole trader invoices as an individual (own name required alongside any trading name) and the income is personal; a limited company invoices as the company, showing its registered name, company number, and registered office. The VAT/GST mechanics are similar once registered — the header block is what changes.
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