Your credit control may be failing when overdue invoices are getting older instead of being...
The Ultimate Checklist To Making The Perfect Invoice (that people actually pay!)
A clear invoice removes avoidable reasons for payment delays. It should identify the supplier and customer correctly, explain what was supplied, state the amount due and make the payment terms easy to understand. Where a customer requires a purchase order or job reference, including it can also help the invoice move through their accounts-payable system without unnecessary queries.
Sending invoices promptly matters too. Issue them in line with your contract and the applicable VAT tax-point rules rather than allowing completed work to sit uninvoiced. If overdue invoices are already becoming routine, see how to get invoices paid and cleaning up your sales ledger in 30 days.
The invoice checklist
| Element | What to include | Why it matters |
|---|---|---|
| Invoice number | A unique identification number | Required on an invoice; VAT invoices require a sequential number from one or more series |
| Your details | Business name, address and contact information | Identifies the supplier clearly |
| Customer details | Correct customer name and address | Required information and helps avoid entity disputes |
| PO or job reference | The reference requested by the customer | Not generally a legal requirement, but may be needed for internal approval |
| Description | Clear description of goods or services | Required and reduces queries |
| Dates | Supply date and invoice date | Both are required on standard invoices |
| Amounts and VAT | Charges, applicable VAT and total due | Required information; VAT invoices have additional rules |
| Payment details | Due date, bank details or payment link | Makes payment instructions clear |
| Late-payment wording | Contractual terms or statutory rights where relevant | Sets expectations if a qualifying commercial debt becomes overdue |
GOV.UK sets out the legal minimum for what an invoice must contain. A standard invoice must include a unique identification number, supplier and customer details, a clear description, supply and invoice dates, amounts charged, VAT where applicable and the total owed. Limited companies must use their full company name as it appears on the certificate of incorporation.
VAT-registered businesses have additional requirements. A full VAT invoice must include a sequential invoice number, time of supply, date of issue, supplier VAT number, customer details, sufficient description, applicable VAT rates and amounts, among other information.
Make payment easy
Adding a payment link for faster settlement can reduce friction where it suits your customers and payment provider. Your written terms also matter, particularly around due dates, disputes and interest. See contract clauses that reduce late payment and practical advice on getting customers to pay on time.
Keep credit notes controlled too. Poorly recorded adjustments can make it difficult to establish the balance genuinely outstanding, so use a consistent process for managing credit notes.
For qualifying business-to-business debts, statutory interest can generally be charged at 8% above the Bank of England base rate unless the contract provides a different qualifying interest arrangement. Fixed recovery compensation is currently £40 for debts below £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more.
When a correct invoice still goes unpaid
An accurate invoice does not guarantee payment. Deal carefully with handling part and short payments and consider a company credit check before extending further credit.
Businesses that do not want to manage the chasing process internally can consider outsourced credit control services. Specialist circumstances may require construction debt recovery or an international debt collection agency.
Frequently asked questions
Does every invoice need a sequential invoice number?
Every invoice should have a unique identification number. Full VAT invoices must use a sequential number based on one or more series.
Is a purchase order number legally required?
Not generally. However, if your customer operates a purchase-order system, omitting the required reference may delay internal processing.
Can I charge interest when an invoice is paid late?
For qualifying commercial debts, statutory interest and recovery compensation may be available. Contractual terms can affect whether statutory interest applies.
Next steps
Review your oldest unpaid invoices against the checklist above. If the paperwork is complete and payment has still not arrived, speak to our UK debt collection agency about the available recovery options.
Need Expert Debt Collection Advice?
If your business is dealing with overdue invoices or difficult debtors, speak to Taurus Collections for practical, professional support with commercial debt recovery.
Karl Baker
Karl Baker is the founder of Taurus Collections and his company has helped recover over £1.1 million worth of debt with an average recovery rate of 91.5%.