Key takeaways
- Zoho Invoice is free for UK businesses, with up to 500 invoices a year and two users.
- SumUp Invoices has a free plan with unlimited invoices and a Plus plan at £7 a month plus VAT billed annually; online card payments cost 2.5%.
- FreshBooks UK plans start at £16 a month for 5 billable clients, with 50% off the first three months when checked on 6 November 2026.
- Every UK invoice must show a unique invoice number, your name and address, the customer's name and address, a description, the supply date, the invoice date and the amount owed.
- VAT-registered businesses must normally issue a VAT invoice within 30 days of the supply, and can use a simplified invoice for supplies of £250 or less.
- If a business customer pays late you can claim statutory interest at 8% plus the Bank of England base rate.
UK invoicing software ranges from free tools such as Zoho Invoice and SumUp Invoices to full accounting packages such as FreeAgent, FreshBooks and Xero that also handle bookkeeping and tax. Which suits you depends on how many invoices you send and whether you need accounts and Making Tax Digital filing in the same place. This page lists five options alphabetically, using each provider’s own pricing page checked on 6 November 2026; we do not rank them.
Quick comparison of invoicing software prices
Prices run from £0 to over £40 a month. All figures exclude VAT unless the provider did not say.
| Product | Entry price | What else it does |
|---|---|---|
| FreeAgent | £19 a month (sole trader) | Full accounts, MTD |
| FreshBooks | £16 a month (Lite) | Accounts, MTD VAT |
| SumUp Invoices | Free; Plus £7 a month | Invoices and quotes |
| Xero | £18 a month (Ignite) | Full accounts, MTD |
| Zoho Invoice | Free | Invoices and quotes |
Several providers showed introductory discounts. Check the page on the day you sign up.
Free invoicing software
Free tools suit sole traders and small firms that only need to raise invoices and keep accounts elsewhere.
SumUp Invoices offers a Free plan with unlimited invoices and quotes, but bank transfers only go to a SumUp Business Account and invoices are in sterling only. The Plus plan is £7 a month plus VAT, billed annually, and adds payment to any bank account, other currencies, full customisation and 14 languages. SumUp’s pricing page lists a 2.5% fee when a customer pays online by card, so £2.50 on a £100 invoice. Bank transfers and cash carry no fee.
Zoho Invoice is free for UK businesses with no card needed to sign up. Zoho’s page sets limits of two users, three projects and 500 invoices a year, and invoices carry “Powered by Zoho Invoice” branding. For Making Tax Digital, Zoho points users to its separate Zoho Books product.
Accounting software with invoicing built in
Accounting packages cost more but turn each invoice into a bookkeeping entry, so your accounts and tax returns update as you bill.
FreeAgent costs £19 a month for sole traders, £27 for partnerships and £33 for limited companies, plus VAT, with half price for the first six months. It is free with a NatWest, Royal Bank of Scotland or Ulster Bank business current account.
FreshBooks prices by number of billable clients. Its UK page listed Lite at £16 a month (5 clients), Plus at £30 (50 clients) and Premium at £42 (unlimited), with 50% off for three months. Extra team members cost £8 each a month. The page did not say whether prices include VAT.
Xero lists Ignite at £18, Grow at £39, Comprehensive at £55 and Ultimate at £70 a month, plus VAT, with 90% off for six months for new customers. All four are listed as MTD for Income Tax ready.
Our free accounting software guide covers other no-cost options.
What must a UK invoice include?
Every UK invoice must include the items GOV.UK lists. Use this as a checklist when you set up a template:
- A unique identification number
- Your business name, address and contact details
- The customer’s name and address
- A clear description of what you are charging for
- The supply date and the invoice date
- The amount charged, any VAT, and the total owed
Sole traders must show their own name and any business name. Limited companies must show the full registered name, and if any directors are named, all of them must be. Our guide to UK invoice requirements covers each item.
VAT invoice rules
You must issue a VAT invoice if you and your customer are both VAT registered. VAT Notice 700/21, last updated 18 March 2024, sets the rules:
| Invoice type | When you can use it | Key extra details |
|---|---|---|
| Full VAT invoice | Any supply | VAT number, rate, VAT total, unit price |
| Modified invoice | Supplies over £250 | Shows VAT-inclusive values |
| Simplified invoice | £250 or less including VAT | Total including VAT, VAT rate |
You must normally issue a VAT invoice within 30 days of the supply. Check that your software lets you add your VAT registration number and show the rate on each line.
Features to check before you choose
Test these in a free trial before you commit:
- Sequential numbering that cannot create duplicates.
- Online payment links and the fee per card payment.
- Recurring invoices for retainers and monthly clients.
- Automatic reminders for overdue invoices.
- Bank feeds that match payments to invoices.
- Export or sync to your accountant’s software.
Which applies to you?
- If you send a few invoices a month and keep accounts in a spreadsheet, a free tool such as SumUp Invoices or Zoho Invoice may be enough.
- If you are a sole trader joining MTD for Income Tax, choose software that files quarterly updates, such as FreeAgent or Xero; see our MTD software guide.
- If you bill many clients by the hour, FreshBooks prices by client count, so check which tier covers your list.
- If you bank with NatWest, RBS or Ulster Bank, FreeAgent may come free with the account.
What to do if invoices go unpaid
Chase late invoices in writing and set out your rights. Between businesses you can claim statutory interest at 8% plus the Bank of England base rate under the late payment rules. Work out the figure with our late payment interest calculator and see how to chase an unpaid invoice.
Frequently asked questions
Is there free invoicing software in the UK?
Yes. Zoho Invoice is free for up to 500 invoices a year, and SumUp Invoices has a free plan with unlimited invoices, though online card payments cost 2.5%.
Can I write invoices in Word or Excel?
Yes. HMRC does not require software for invoices, as long as each one has the required details and a unique number. Software helps avoid numbering mistakes and chases payments for you.
How long do I have to issue a VAT invoice?
Normally within 30 days of the date you make the supply, according to HMRC’s VAT Notice 700/21.
What is a simplified VAT invoice?
A shorter VAT invoice you can issue for supplies of £250 or less including VAT. It shows your name, address, VAT number, the time of supply, a description, the total including VAT and the VAT rate.
Does invoicing software file Making Tax Digital returns?
FreeAgent and Xero list MTD for Income Tax filing. Zoho points MTD users to its separate Zoho Books product, and SumUp’s pricing page did not list quarterly update filing, so check before relying on either.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.