As a sole trader, knowing how to create and send professional invoices is key for getting paid on time and keeping clients happy. 

After all, there’s no getting around the fact that all sole traders need to send them. Invoices are essential not just for getting paid but for tax purposes, financial record-keeping and projecting a professional image to your clients and customers. 

In today’s article, we'll break down how to create and send professional invoices, giving you the lowdown on what to include, the best invoicing software options and your legal obligations as a sole trader.

What to include in your invoice

Let’s jump right into it. Here’s all the important info you need to include when sending an invoice as a sole trader:

1. Your business information

Put your business name, address and contact details at the top. If you're VAT registered, include your VAT number too.

2. Your client’s details

Make sure you've got your client's name, address and contact details right.

3. Invoice number and date

Give each of your invoices a unique number (ideally in chronological order) and include the date you’re sending it.

4. A description of the services or products provided

List the work you've done or products you've sold, along with the prices for each item or service. Clear itemisation (breaking down hours spent or number of products sent) will also help avoid any misunderstandings down the line. 

5. Lay out your payment terms

Lay out a clear payment due date on your invoices to indicate when payment is expected. Lots of sole traders use terms like "Net 30" (if the payment’s due within 30 days) or "Upon Receipt" (for immediate payment). It’s super important to clearly communicate your payment terms to make sure everyone’s on the same page.

You’ll also need to specify clear payment terms, including accepted payment methods and any consequences for late payments, such as late fees or interest charges. Clearly communicating these policies in your invoice will encourage customers to pay you on time. 

6. Consider any VAT requirements

If your business is VAT registered (the current mandatory VAT threshold is £90,000), ensure your invoices comply with HMRC's VAT invoicing requirements. Include your VAT registration number, separate VAT amounts (if applicable) and make sure you comply with invoicing rules for international transactions if relevant.

7. The total amount due

Calculate the total amount due, including any taxes or additional charges, and clearly display it on your invoice. We’d recommend using bold formatting or highlighting the total amount for emphasis.

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Using professional sole trader invoice templates

If you want to see an example of a strong invoice that ticks all of the boxes above, check out our free UK invoice template for sole traders, freelancers and the self-employed.

If you’re VAT registered, you might also be interested in our free VAT registered sole trader invoice template.  

Choosing the right invoicing software

You can do all your invoicing yourself, but many sole traders choose to use invoicing software to make their lives that little bit easier. 

Invoicing software is great for automating tasks like invoice generation, tracking payments and sending overdue payment reminders. It can also simplify your financial admin by providing professional invoice templates, easy-to-use reporting tools and other handy features tailored to small businesses, freelancers and sole traders like you. 

You can also use our free Crunch invoicing software to quickly create, send and track invoices while managing expenses, saving your business time and money.

Get professional help with creating your invoices

The easiest way to check whether your invoices tick all the legal boxes and are clear as can be is to seek help from a professional accountant or tax adviser. 

And if you want to do that on a budget, our new service for sole traders, CrunchONE, might be for you. CrunchONE combines award-winning self-employed accounting software with support from in-house accredited accountants to simplify your financial admin and help you never worry about invoices, tax or any other sole trader admin again. 

With CrunchONE, you can manage your invoices, expenses, sales, payments and more with open banking and bank reconciliation from one unified platform linked to your bank account.

Our top tips for invoice management

Now that we’ve covered the basics, here are a few things to bear in mind to make you a total pro when it comes to invoicing:

1. Keep hold of every single invoice

Hang on to copies of all your invoices for at least six years. It's a legal requirement to keep hold of them for that long, and will help you out a lot when tax season rolls around.

2. Send your invoices as promptly as possible

Send your invoices out as soon as you've finished a job or delivered a product. Or, if you’re providing an ongoing service to multiple customers, set a reminder to send out your invoices on the same day each month. This helps keep your cash flow steady. 

3. Remember to follow up on overdue invoices

If you’re sending out lots of invoices regularly, it can be tempting to think the job’s done the second you’ve got that invoice sent out. But don’t forget to follow up on any invoices that are past your payment due date. If a client hasn't paid on time, send them a friendly reminder. Sometimes, they just need a nudge. You might find our free late payment reminder templates helpful for this! 

4. Review and reconcile your payments

It’s a good idea to regularly check your incoming payments against invoices you’ve sent, so you’re able to spot any discrepancies or outstanding payments. 

5. Keep your invoices on-brand 

Remember that consistent formatting across invoices enhances professionalism and makes a great impression on your customers, so stick to the same professional invoice template/s and don’t be afraid to customise them to include your own branding elements (like fun colours or your logo).

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You’re ready to start invoicing!

Sending invoices might seem complicated at first, but once you've got the hang of it - or have help from a professional - it's really not so bad. 

By making sure your invoices are clear, using the right software, setting fair payment terms and staying organised, you'll be on your way to getting paid on time and running a successful business as a sole trader.

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