Make a credit note
the right way
Correct or cancel an invoice without touching it: a credit note against the original number, with VAT worked out. Free, with no account.
Your business and bank details are kept in this browser only, never sent to us to store.
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<iframe
src="https://taptax.co.uk/credit-note-generator/embed"
title="Credit note generator"
width="100%"
height="680"
loading="lazy"
style="border:1px solid #e5e7eb;border-radius:12px;max-width:100%"
></iframe>
<p style="font-size:12px">
<a href="https://taptax.co.uk/credit-note-generator">Credit note generator by TapTax</a>
</p>- Credit note
- A document that reduces or cancels an amount you invoiced, for a return, an overcharge, a discount agreed afterwards or a cancelled job. It is the correct way to fix an invoice that has already been sent.
When to issue a credit note
- The customer returned goods, or part of an order.
- You charged too much, or charged for something not delivered.
- You agreed a discount or goodwill reduction after invoicing.
- The job was cancelled after the invoice went out.
- The invoice had a mistake in it, such as the wrong customer or price.
In every case the original invoice stays as it was. The credit note sits beside it and reduces what is owed, and both stay in your records. For a full correction, credit the whole invoice and send a new one with the invoice generator.
What a VAT credit note must show
When you are VAT registered and the credit changes the VAT due, HMRC expects the credit note to carry the details below, so both sides adjust their VAT correctly.
| Detail | In the generator |
|---|---|
| An identifying number and the date of issue | Credit note number and date |
| Your name, address and VAT number | From “Your business” |
| The customer’s name and address | From “Who the credit note is for” |
| The reason for the credit | In the line descriptions or the notes |
| What is being credited, with quantity and amount | One line for each item credited |
| The total credited excluding VAT, and the VAT | Worked out for you |
| The number and date of the original VAT invoice | “Against invoice number” |
- Never change a sent invoice: credit it.
- Always quote the original invoice number on the credit note.
Credit notes in your books
A credit note reduces your income for the period it relates to, so it belongs in your records next to the invoice it corrects. If the customer had already paid, you either refund the amount or carry the credit against their next invoice; say which in the notes. For Making Tax Digital, your quarterly update should report your income after credits: what you earned, not what you first invoiced.
Nothing you type here is stored on our side. The credit note is made and sent straight back to you as a PDF, with a small “Created with TapTax” line in the footer and nothing else of ours.
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Frequently asked questions
Is the credit note generator free?
Yes, with no account and no card. The only mark of ours is a small “Created with TapTax” line in the footer.
When should I issue a credit note?
When goods are returned, you overcharged, a discount is agreed after invoicing, or a job is cancelled. Never edit a sent invoice; credit it instead.
What must a VAT credit note show?
Its own number and date, your name, address and VAT number, the customer, the reason, what is credited with amounts, the VAT, and the number and date of the original invoice.
Do I refund the money?
If the customer has paid, either refund the credit or set it against their next invoice. Say which in the notes.
Do you keep my credit notes?
No. The PDF is made and sent straight back; nothing you type is stored.
Your income, kept right.
TapTax keeps your income and expenses in one place and files your quarterly updates to HMRC. Start on the free plan, no card needed.
Get started freeWhere these figures come from
Rates from GOV.UK.