E-invoicing checklist
for sole traders

A structured e-invoice is an invoice sent as data. Every piece of it, from the invoice number to each line's VAT, sits in a labelled field that the buyer's software reads without anyone typing. From April 2029, every VAT invoice in the UK must be one. The good news for sole traders is that most of the preparation is free, and much of it improves your invoicing today. This checklist puts the steps in order, flags what to leave until the UK rules are published, and links to the detail.

The checklist at a glance

Step 1: check your VAT position

The mandate covers VAT invoices. You must register for VAT if your taxable turnover over the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. The government has said many of the smallest businesses, which are not required to register and choose not to, will not be obliged to adopt e-invoicing. The VAT registration checker shows where you stand. If you are well below the threshold and not registered, most of this checklist is optional, though steps 3 to 5 still make you a better invoicer.

Step 2: list your VAT invoices

HMRC's VAT guide says you must give a VAT invoice whenever you supply standard or reduced-rated goods or services to another VAT-registered person. You do not need to for customers who are not VAT registered, and consumer sales are outside the mandate. So list your regular customers and mark which receive VAT invoices from you: those are the invoices that will change. The guide on who is in scope covers the edge cases.

Step 3: move invoicing into software

An invoice made in a word processor or spreadsheet exists only as a document. To become a structured e-invoice, someone would have to retype it. An invoice raised in invoicing or accounting software already exists as data, so turning it into an e-invoice is the software's job. If you still use templates, this is the single most useful step you can take. The government's response notes that several Making Tax Digital providers focused on small businesses already offer e-invoicing, so choosing MTD-compatible software can cover both.

Step 4: set a clean numbering sequence

A VAT invoice needs a unique, sequential number. In a structured e-invoice, it is a field that systems use to match, de-duplicate and reconcile, so gaps, duplicates and ad hoc formats cause problems. Pick a simple format and stick to it; the invoice number generator helps, and the invoice number entry explains the rules.

Step 5: complete your customer records

Structured invoices need structured customer data. For each business customer, record:

Customers will also have a Peppol identifier once they are on the network. You will not need to collect it by hand if your software looks customers up, but accurate names and VAT numbers make that lookup reliable.

Step 6: capture order and buyer references

Larger customers often issue purchase orders and expect the order number on your invoice. In a structured e-invoice, the buyer's reference and order number are dedicated fields, and invoices without them may be rejected or stall. Get into the habit now of asking for the PO number before you start work, and recording it against the job.

Step 7: check VAT on every line

Each line of a structured e-invoice carries its own VAT rate and category, such as standard, zero-rated, exempt or reverse charge. Mistakes that a person might wave through on a PDF will fail validation. Make sure your software has the right rate on each product or service, and that construction work under the domestic reverse charge is flagged. The VAT calculator and reverse charge checker help.

Step 8: ask your software provider

Ask four questions now, and again after the Budget 2026 roadmap:

1. Are you, or will you be, an accredited Peppol access point, or do you work with one?
2. Will I be able to receive e-invoices as well as send them?
3. What will it cost?
4. Will you meet the UK standards once they are published?

The guides on choosing e-invoicing software and Peppol access points explain what good answers look like.

Step 9: talk to customers and suppliers

Once the roadmap is out, tell your main business customers you will be sending e-invoices and ask when they expect to receive them. Ask your main suppliers when they will start sending e-invoices to you. If a customer already requires e-invoices, for example an NHS body using Peppol, you may need to move sooner.

Step 10: test before it matters

When your provider supports the UK standards, send a real e-invoice to a friendly customer and ask a regular supplier to send you one. Check that both appear correctly in your records, that the VAT is split out, and that you know what happens when an invoice is rejected. Do this months before April 2029, not in the final week.

A suggested timeline

Three starting points

The template user. A VAT-registered gardener invoices a handful of commercial clients from a word processor template and keeps a spreadsheet of who has paid. Their biggest step is step 3: moving to invoicing software, ideally one that also handles Making Tax Digital. Once invoices live in software, the rest of the checklist is quick.

The software user. A VAT-registered IT contractor already invoices from cloud accounting software, with numbered invoices and saved customer details. Their work is mostly steps 5 to 8: filling in missing VAT numbers and PO references, checking the VAT settings, and asking the provider about its Peppol plans.

The unregistered sole trader. A mobile hairdresser with turnover of £30,000 sells only to the public and is not VAT registered. The mandate does not oblige them to adopt e-invoicing, and their sales are consumer sales in any case. Steps 3 to 5 are still worth doing for their own records and Making Tax Digital, but the rest can wait unless their turnover heads for the VAT threshold.

Involve your accountant or bookkeeper

If someone helps with your books, bring them in early. The government expects accountants and bookkeepers to play a vital role in helping businesses adopt e-invoicing, as they did with Making Tax Digital, and 69% of consultation respondents who answered said they use an accountant. Ask which software they support and whether they plan to help clients switch. Choosing software your adviser already works with makes the move, and your year-end, simpler.

What not to do yet

• Do not pay for e-invoicing tools that cannot say how they will meet the UK standards.
• Do not change your invoice content in anticipation: the VAT invoice rules still apply as they are.
• Do not stop sending PDFs until you have switched: they remain valid today.
• Do not panic: the government chose a long lead time precisely so businesses can prepare.

Keep the basics right in the meantime

While you prepare, the everyday rules of invoicing still apply. Set clear payment terms and due dates (the invoice due date calculator works them out), chase late payers promptly, and remember that business customers who pay late owe statutory interest and compensation. The e-invoicing hub will be updated as the roadmap and standards are published, so you can tick off the later steps when the time comes.