If you’re wondering whether you can invoice without a company, the answer is yes! **Whether you’re an independent contractor or just starting out, invoicing without a company is possible – and it isn’t complicated. **
Do I Need to Set Up a Company to Invoice?
In the UK, you don’t need to set up a company in order to invoice for your services. This is because there’s no legal requirement for businesses to have a formal company structure – sole traders can operate without one.
If you’re invoicing as an individual, you’ll just need to use your own name and address on your invoices. However, there are a few things to bear in mind if you’re going down this route.
First of all, customers may be more comfortable dealing with a registered company than an individual – so it’s worth considering whether setting up a limited company might give you an advantage in terms of winning work.
Secondly, if you’re invoicing under your own name, you’ll be personally liable for any debts incurred by the business – so it’s important to make sure you have the right insurance in place to protect yourself.
How Do I Invoice Without a Company?
There are a few different ways to invoice without a company. The simplest method is to just use your own name and address on your invoices, as we mentioned above. However, if you’d prefer to give your customers the impression that they’re dealing with a real company, there are a couple of other options available to you.
One option is to have a trading name for your business. This is basically just another name that you trade under, and it can be anything you like – it can’t, however, include the word “limited” or anything similar. You can find out more about setting up a trading name via the UK Government website or by reading our guide on whether you need a registered company to set up a website.
What to Include in an Invoice as an Individual
If you’re invoicing as an individual, there are a few key pieces of information that you’ll need to include on your invoice.
Firstly, you’ll need to put your name and contact details (including your address, phone number and email address) at the top of the page. You should also include your customer’s name and contact details – if you’re unsure about how to format this, just take a look at some examples of invoices online.
Next, you’ll need to give your invoice a unique reference number. This is so that both you and your customer can keep track of it, and it will usually be made up of both letters and numbers. It’s a good idea to include the date that the invoice was issued, too.
Finally, you’ll need to list the products or services that have been provided, along with the corresponding cost. If there are any discounts or special offers applied, make sure to include these on the invoice as well. Once you’ve got all of this information included, just add up the total cost and put it at the bottom of the page – then your invoice will be ready to send!
Remember to put your payment details at the bottom of the invoice otherwise your client may find it hard to pay you.
Will my invoice be legally enforceable?
Yes – as long as your invoice includes all of the relevant information (as outlined above), it will be legally enforceable. This means that if your customer doesn’t pay you, you can take them to court in order to recover the debt.
An invoice on its own is not legally enforceable without a written contract. Therefore there must be something written with the terms of the agreement. This can be as simple as an email, or you can draft up an official document if you need to.
It’s always wise to make sure that you have terms and conditions written for your services, as this further protects you if a client challenges an invoice, but it’s not always necessary if you’ve stipulated these in writing beforehand.
Can I Invoice Without A Company Number?
Yes – you can invoice without a company number, but there are a few things to bear in mind if you do. Firstly, customers may be reluctant to deal with a business that isn’t registered with Companies House – so it’s worth considering whether setting up a limited company might give you an advantage in terms of winning work.
Secondly, if you’re invoicing under your own name, you’ll be personally liable for any debts incurred by the business – so it’s important to make sure you have the right insurance in place to protect yourself.
Do I Need To Be Registered For VAT Registered?
VAT registration is only really necessary if you trade with a lot of businesses or have a high turnover, and often that means you will have already thought about your company structure.
The current VAT threshold as of 2022 is £85,000.
There is no legal requirement to register for VAT until you meet that threshold, and it applies to all businesses, including self-employed.
You may wish to register for VAT before you hit that threshold, as you do get the benefit of claiming VAT back on any purchases you make. You do, however, need to charge VAT on all invoices to customers.
Some customers may ask if your invoice includes VAT. Make it clear on your invoices if you do charge VAT.