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Accounting and invoicing for small businesses

Little turnover, little time, no tax office in the house: whoever starts small or works for themselves on the side needs invoices that are right and an overview that does not overwhelm. Saldiqo puts the VAT exemption note on the invoice, shows how much turnover is left before the limit and collects your receipts in one place.

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What comes up for small businesses

The right note

Whoever does not show VAT has to make that clear on the invoice. If the note is missing or wrong, there is trouble with the tax office and questions from customers.

Keeping an eye on the limit

The exemption only applies up to a turnover limit. Whoever passes it has to account for VAT, often already on the turnover that passes it.

Little time, little knowledge

Next to a job there is hardly time for bookkeeping. You need few steps: write the invoice, match the payment, photograph the receipt.

How Saldiqo helps

  • Note on every invoiceYou choose the small business tax type, and Saldiqo puts the matching note for your country on the invoice.
  • Limit in viewSaldiqo shows how much turnover is left before the limit.
  • Receipts by phone photoPhotograph the receipt and capture it as an expense instead of collecting slips.
  • Tick off paymentsUpload the bank statement, and Saldiqo recognises paid invoices and suggests the matching one for the rest.

Typical invoice lines

Examples that often appear on invoices in this industry. You set the prices yourself.

  • Service as agreed, hours
  • Flat fee for the job
  • Material as per receipt
  • Travel, flat fee
  • Gift voucher worth 30
  • Credit note: discount granted afterwards

Tax and invoicing in the UK

What applies to invoices in the UK, in short. As of October 2026.

VAT
Standard rate 20 %, reduced rate 5 % and zero rate 0 %. Saldiqo calculates each invoice line with the rate you pick.
VAT registration
You must register once your taxable turnover passes £90,000 over any 12 months, or you expect to pass it within the next 30 days. You can deregister below £88,000. Until you are registered, your invoices show no VAT, and Saldiqo adds up your 12-month turnover for you.
What goes on an invoice
If you are VAT registered: your VAT number, the tax point, unit prices and the VAT total in pounds. A limited company shows its registered name on every invoice, and its company number, registered office and part of the UK on letters, order forms and the website.
E-invoicing
There is no mandate today. From April 2029 e-invoicing is planned for all B2B and B2G sales that carry VAT, through Peppol. The exact date and standard are not yet in law, and the government’s roadmap follows with the Budget on 28 October 2026.
VAT returns
VAT returns go to HMRC through Making Tax Digital, usually quarterly, due one month and seven days after the period. Saldiqo shows sales and VAT per rate and exports CSV. It does not submit to HMRC, and for Making Tax Digital you need software recognised by HMRC.
Record keeping
Keep VAT records for 6 years.
Late payment
Statutory interest on late business payments is the Bank Rate (3.75 % in the second half of 2026) plus 8 points, so 11.75 %. On top comes fixed compensation of £40, £70 or £100, depending on the amount owed (under £1,000, from £1,000, from £10,000). Consumers have no statutory interest.
Getting paid
Your sort code and account number are on every invoice. Customers pay by Faster Payments or Bacs, and banks check the account name with Confirmation of Payee. There is no QR standard in the UK.

For small businesses in the UK

The UK has no small business scheme as such but a registration threshold of £90,000. Until you are registered, your invoices show no VAT.

Frequently asked questions

How do I know that I am a small business?

That depends on your country and your turnover. The limits are listed above. Saldiqo adds the note when you choose the small business tax type, but does not check whether the exemption applies to you.

What happens when I pass the limit?

Saldiqo shows you the current standing. Once you pass it, you choose the tax type with VAT on new invoices. When exactly that is, you clear with your tax adviser.

Do small businesses in the UK have to charge VAT?

Only once they are VAT registered. Registration is required when taxable turnover passes £90,000 over any 12 months, or is expected to within the next 30 days. Below that you may register voluntarily. If you are not registered, you must not show VAT on your invoices.

Do small businesses in the UK need e-invoicing?

Not today. A mandate for B2B and B2G sales with VAT is planned from April 2029, and the details were still open as of October 2026. You can keep sending PDF invoices for now.

How long should small businesses keep invoices?

Keep VAT records for 6 years. You can store receipts digitally in Saldiqo. The legal duty to keep records stays with you.

Try Saldiqo for free

Write invoices, match payments, collect receipts and send reminders: free and without a trial period.

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As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.