Invoice
template for Excel

The Excel version of the invoice template works as a calculator as well as a form. Type a quantity and a price and the line total, subtotal, VAT and total update on their own. This page explains how the formulas work, how to keep them safe, how to organise a year's worth of documents, and what a UK invoice must show.

How the formulas work

Each line's amount is its quantity multiplied by its unit price, rounded to the penny: =ROUND(B12*D12,2). The subtotal adds up the amount column with SUM, the VAT line multiplies the subtotal by the VAT rate cell, and the total adds them together. Type only into the description, quantity, unit and price cells; the amount and total cells should be left alone. The empty rows below the example lines already contain the formula, and the money format shows nothing until you enter a quantity and price, so the sheet stays tidy.

Adding rows without breaking the totals

If you need more lines than the template provides, insert new rows in the middle of the lines (right-click a row number, Insert) rather than below the last one. Excel then extends the SUM range automatically. Copy the amount formula into the new row by dragging down from the row above. A quick way to check nothing is broken is to click the total cell and look at the formula bar: it should refer to the subtotal and VAT cells, not to a typed number.

Protecting the formulas

To stop a formula being typed over, lock the calculated cells. Select the cells you type into, choose Format Cells, Protection, and untick Locked; then choose Review, Protect Sheet. From then on only the input cells can be edited. Keep one workbook per year, and make a new sheet for each invoice by right-clicking the sheet tab and choosing Move or Copy, Create a copy, naming each tab with its number.

Sending it

Send a PDF, not the spreadsheet. In Excel, choose File, Export, Create PDF/XPS (or Save As, PDF on a Mac), and select only the invoice sheet. Check the print preview first: the template is set to fit one page wide, so it prints and exports cleanly on A4. Keep the workbook as your working record and the PDF as the copy you sent.

Changing the VAT rate

The VAT rate sits in its own cell next to the VAT line, formatted as a percentage, and the VAT and total formulas refer to it. If you are not VAT registered, delete the VAT row entirely (right-click the row number, Delete) and check the total now equals the subtotal: an unregistered business must not show VAT. If you charge 5% on some work, change the rate cell to 5%, or keep two invoices rather than mixing rates on one sheet, which is simpler to get right.

What the invoice must show

Send an invoice when you have supplied goods or services and expect to be paid later, even if only a few days later. Businesses almost always need one, because their accounts team cannot pay without it, and a VAT-registered customer needs a VAT invoice to reclaim the VAT.

The template's example lines, which you replace with your own:

Filling in the invoice

1. Replace [Your business name] and the address and contact lines with your own details.
2. Add your customer's name and address under "Bill to".
3. Give the invoice the next number in your sequence and set the invoice date.
4. Describe each piece of work or item on its own line, with the quantity and price.
5. Add VAT at the correct rate only if you are VAT registered, and your VAT number.
6. Set the due date from your payment terms and add your bank details.
7. Save it as a PDF and email it to the person who pays, keeping a copy.

VAT invoices and payment terms

You can only charge VAT if you are VAT registered, and registration is compulsory once your taxable turnover over any 12 months goes above £90,000. A VAT-registered business selling to another VAT-registered business must issue a VAT invoice, normally within 30 days of the supply, showing its VAT number, the time of supply, and for each item the price excluding VAT, the rate and the VAT. Payment terms are up to you and your customer, but between businesses the law fills the gap when none are agreed: payment is due 30 days after the customer receives the invoice or the goods, and late payers owe statutory interest at 8% above the Bank of England base rate plus fixed compensation. The invoice due date calculator and late payment interest calculator do the sums.

Invoice, receipt, quote or pro forma?

An invoice asks to be paid for something already supplied. A receipt confirms payment has been made. A quote offers a price before the work, and a pro forma invoice asks for payment in advance but is not a real invoice or a VAT invoice. If you need to reduce or cancel an invoice after sending it, the right document is a credit note, never an edited invoice.

Getting paid on time

Most late payment is disorganisation, not refusal. Put everything needed to pay on the invoice: your bank details, the reference to use and a clear due date. Send it on the day the work is finished, to the person who actually pays, and quote the customer's purchase order number if they gave you one. Then follow a simple routine: a friendly reminder the day after the due date, a firmer one a week later, and a payment reminder letter after two weeks. If a business still does not pay, a letter before action usually does it.

Invoices for sole traders and limited companies

A sole trader invoices in their own name, or in a business name with their own name shown too, and gives an address where legal documents can be delivered. A limited company must use its full registered name, and its business letters and order forms must also show its registered number, place of registration and registered office address, which is why most companies put them on invoices too. Neither needs to be VAT registered to invoice. Until you register, you simply invoice without VAT; once registered, every invoice to a VAT-registered customer must be a full VAT invoice.

Invoicing and your tax return

For most sole traders, income is taxed on the cash basis, which is the default from the 2024 to 2025 tax year: an invoice counts as income when it is paid, not when it is sent. Your invoices are still your record of what you earned and when, so they need to be complete and kept. Under Making Tax Digital for Income Tax, your quarterly updates are built from these records, which is where keeping invoices digitally from the start pays off: nothing has to be retyped at the end of the quarter.

Common mistakes

• Charging VAT when not VAT registered. You can only show VAT with a VAT number; an unregistered business shows the total with no VAT line.
• Editing an invoice after sending it. Correct mistakes with a credit note and a new invoice, so both sets of records match.
• No due date or bank details. Without them the invoice is harder to pay and easier to ignore; put both on every invoice.
• Typing over a formula. A typed number in a total cell stops updating; restore the formula or protect the sheet.
• Adding rows below the SUM range. Insert rows inside the lines, so the subtotal includes them.

Checklist before you send it

A quick check of every invoice before you send it:

• A unique invoice number is on it and correct.
• Your name or business name, and an address is on it and correct.
• Your customer's name and address is on it and correct.
• A clear description of what you are charging for is on it and correct.
• The date of supply and the date of the invoice is on it and correct.
• The amount charged for each item, VAT if applicable, and the total owed is on it and correct.
• Your VAT number, and VAT details for each rate, if VAT registered is on it and correct.
• A copy is saved with your records.

Keep a copy

Business documents are records, and records have to be kept. Save every invoice in one place, ideally digitally, so you can find it if a customer or HMRC asks. Making Tax Digital for Income Tax makes digital records compulsory from 6 April 2026 for qualifying income over £50,000, from April 2027 over £30,000 and from April 2028 over £20,000; check your date with the MTD requirement checker.

Other formats and the full guide

This page covers Excel. The invoice template guide explains the document itself in full, and the same template is available in the other formats from there. To skip the download, the free invoice generator makes a finished PDF online.

If you would rather not manage documents by hand, a TapTax account, free to start, keeps your invoices, receipts and bank transactions together and files your Making Tax Digital quarterly updates to HMRC.