- When: e-invoicing becomes mandatory in the UK from April 2029 for VAT invoices on business-to-business (B2B) and business-to-government (B2G) sales. HMRC has confirmed the month, not the day.
- Who: VAT-registered businesses. Sales to consumers are out of scope, and businesses that are not VAT-registered (turnover under the £90,000 threshold, unless registered voluntarily) are not obliged.
- How: invoices will travel between businesses’ own software over Peppol, a network of certified providers. There is no central HMRC platform and no real-time reporting to HMRC in 2029.
- What a PDF is: not an e-invoice. The government’s definition excludes PDF and Word invoices, images and invoices in the body of an email.
- Not yet confirmed: phasing by business size, penalties, software accreditation and any free government tool. The roadmap and standards are due at Budget 2026 on 28 October 2026.
- Already needed: NHS Supply Chain requires its suppliers to send e-invoices over Peppol today.
- Software: of the five big names, only Xero says on its UK pages that you can send and receive Peppol e-invoices now. Two cheaper invoicing tools also send them.
From April 2029 every VAT invoice a UK business sends to another business or a public body must be a structured e-invoice sent over the Peppol network, not a PDF. If you are not VAT-registered, or you only sell to consumers, your sales invoices are not covered on the plans announced so far. The detailed roadmap is due on 28 October 2026, and this page will be updated that day.
Does UK e-invoicing apply to you?
Example answer for a VAT-registered business that invoices other businesses. Change the answers above.
The mandate applies to you from April 2029
You are VAT-registered and you invoice businesses or public bodies. On the rules announced so far, every VAT invoice you issue to them will have to be a structured e-invoice from April 2029. A PDF attached to an email will no longer count.
What to do next
- Ask your invoicing or accounting software whether it can send and receive Peppol e-invoices, and from when.
- Clean up customer records now: legal names, VAT numbers and addresses, which an e-invoice needs in fixed fields.
- Watch the roadmap due at Budget 2026 on 28 October 2026: it should say whether smaller businesses get a later date.
Compare Peppol-ready software What to do now, in 2027 and 2028
Your sales invoices look out of scope, but your purchases may not be
Sales to consumers are outside the mandate: it covers VAT invoices for business-to-business and business-to-government sales. As a VAT-registered business you will still receive VAT invoices from your suppliers, and the government says it wants VAT invoices to be issued and received electronically. How receiving will work for businesses like yours is not yet confirmed.
What to do next
- If you ever invoice a business (trade customers, corporate orders), assume those invoices will be in scope.
- Check that your accounting software can receive e-invoices from suppliers by 2029.
- Recheck after the roadmap on 28 October 2026.
You need to register for VAT, and then the mandate will apply
If your taxable turnover in the last 12 months went over £90,000, you must register for VAT within 30 days of the end of the month in which you crossed it. Once you are VAT-registered and invoice businesses or public bodies, the April 2029 e-invoicing rules will cover those invoices.
What to do next
- Check the rolling 12-month figure and register for VAT on GOV.UK if you are over £90,000.
- When choosing software for VAT, pick one with a clear Peppol plan.
- If you only sell to consumers, your sales invoices are outside the mandate.
Not obliged today, but you are close to the VAT threshold
Businesses that are not VAT-registered are not obliged to use e-invoicing under the plans announced so far. You are close to the £90,000 VAT threshold, so this could change within a year: once you register for VAT and invoice businesses, the mandate covers you.
What to do next
- Track your turnover over a rolling 12 months, not your tax year.
- If you change software in the next year, choose one that can send Peppol e-invoices.
- Remember that voluntary VAT registration would also bring you into scope.
On current plans you will not be obliged to e-invoice
The mandate applies to VAT invoices. The government says many of the smallest businesses, which are not required to register for VAT and choose not to, will not be obliged to adopt e-invoicing. You can still send e-invoices voluntarily if a customer asks for them.
What to do next
- Nothing to do by law. Keep sending normal invoices with all the details your customers need.
- If a business customer asks for e-invoices, many invoicing tools can send them already.
- Recheck if you register for VAT, voluntarily or because you pass £90,000.
Supplying the NHS: you may need Peppol now, not in 2029
NHS Supply Chain already requires its suppliers to issue e-invoices through the Peppol network. If you supply an NHS trust or NHS Supply Chain, check your contract and purchase orders: you may need a Peppol ID and an access point today, whatever your VAT status.
What to do next
- Read the invoicing clause in your NHS contract or supplier onboarding pack.
- Get a Peppol ID through an access point or software that includes one.
Public sector customers can already take e-invoices
Bodies covered by the Public Procurement Act 2023 must accept e-invoices that meet the BS EN 16931 standard. Some may ask suppliers to send them under the contract before 2029.
Not sure whether you are VAT-registered?
If you have a VAT number and file VAT returns, you are registered. The result above uses your turnover answer to estimate whether you must register.
Assumptions: the rules announced up to 20 October 2026: VAT invoices for business and public sector sales must be e-invoices from April 2029; VAT registration threshold £90,000. Phasing by business size, penalties and exemptions are not yet confirmed. This is general information, not tax advice.
This guide is for UK sole traders, limited companies and online sellers who have heard that e-invoicing is coming and want a straight answer: does it apply to me, from when, and what do I need to do. Most of what you will read elsewhere comes from companies selling e-invoicing software. TillRadar doesn’t sell any, and every rule on this page links to a GOV.UK document.
By the end you’ll know what an e-invoice is, how Peppol works in plain English, whether you are in scope, what to do in each year up to 2029 and which invoicing software can already send Peppol e-invoices. It is general information, not tax advice. If your situation is unusual, speak to an accountant.
When does e-invoicing become mandatory in the UK?
E-invoicing becomes mandatory from April 2029. The decision was announced at Budget 2025 on 26 November 2025, which said the government “will require the use of electronic invoicing for all VAT invoices” for business-to-business and business-to-government transactions from 2029. HMRC’s transformation roadmap, updated on 27 July 2026, names the month: “mandatory from April 2029”.
No official document gives the exact day yet. 1 April is the start of the financial year and a common date for VAT changes, which is why the countdown above counts to it, but treat it as an assumption until the roadmap confirms it. There is also no confirmed phasing. Some software companies have written that large businesses go first and smaller ones follow a year later. No GOV.UK document says that today.
The tracker below is the official timeline so far. We update it whenever HMRC or the Department for Business and Trade (DBT) publishes something new, starting on Budget day.
UK e-invoicing tracker: milestones to April 2029
- 7 May 2025Done
Consultation on promoting e-invoicing closes
HMRC and the Department for Business and Trade consulted from February to 7 May 2025 and received 342 responses.
Source: Consultation response, GOV.UK
- 26 November 2025Done
Budget 2025: e-invoicing becomes mandatory from 2029
All VAT invoices for business-to-business and business-to-government sales must be e-invoices from 2029. The consultation response confirms a decentralised model, with no real-time reporting to HMRC in 2029.
Source: Budget 2025 OOTLAR, para 2.34
- January 2026Done
Co-design with industry starts
A stakeholder group of accountants, business organisations and software providers meets monthly from January to June 2026, plus a technical expert group and sector deep dives.
Source: Small Business Commissioner
- 23 June 2026Done
Peppol named as the UK's core e-invoicing network
Tax Update 2026: the government announces that Peppol will be the core interoperability network for e-invoicing in the UK.
Source: Tax Update 2026 summary, GOV.UK
- 27 July 2026Done
HMRC roadmap fixes the month: April 2029
HMRC's transformation roadmap update says B2B and B2G VAT e-invoicing becomes mandatory from April 2029, and that guidance, standards, technical specification and legislation follow by the end of 2027 to 2028.
- 28 October 2026Next in 8 days
Budget 2026: implementation roadmap and standards
HMRC and DBT are due to publish the e-invoicing roadmap with the milestones to April 2029, and the standards. Expected answers: phasing, penalties, software rules, support for small businesses.
Source: Budget date letter, HM Treasury
- By the end of 2027 to 2028Planned
Full guidance, technical specification and legislation
HMRC plans to publish full guidance, standards, the technical specification and legislation by the end of the 2027 to 2028 period.
- April 2029Planned
E-invoicing mandatory for B2B and B2G VAT invoices
The exact day and any phasing by business size are not yet confirmed. Sales to consumers are out of scope.
- After 2029Planned
Possible real-time reporting to HMRC
The government will consider some form of real-time reporting, but it will not be implemented in 2029, only once e-invoicing use is well established.
Source: Consultation response, chapter 8
Checked 20 October 2026. Dates are as the official documents give them. Where a document gives only a month or a financial year, the label says so. Updated on Budget day, 28 October 2026.
What is confirmed so far, and what is still open?
Much of the coverage of UK e-invoicing mixes official decisions with guesses. Here is the split, based only on GOV.UK documents published up to 20 October 2026.
| Question | Status | What the official text says |
|---|---|---|
| Start date | confirmed | April 2029 (HMRC roadmap annex, July 2026). Exact day not stated. |
| Which invoices | confirmed | All VAT invoices for B2B and B2G transactions. Sales to consumers are not covered. |
| Model | confirmed | Decentralised: invoices go between businesses’ software providers, not through a government platform. |
| Network | confirmed | Peppol is “the core interoperability network for e-invoicing in the UK” (Tax Update, 23 June 2026). |
| Real-time reporting to HMRC | confirmed: not in 2029 | May come later, “once e-invoicing use was well established”. |
| Phasing by business size | open | Not mentioned in any official text. One date for all VAT invoices so far. |
| Penalties | open | None announced. |
| Software accreditation | open | The government will make sure “the right regulatory framework is in place for software providers”. No scheme announced. |
| Free government tool | not planned so far | None announced. The government expects the market to offer products “at a range of price points”. |
| Technical standard and data format | open | Standards are due at Budget 2026. Full guidance, technical specification and legislation by the end of 2027 to 2028. |
What to look for on Budget day, 28 October 2026
The Budget 2025 document says the implementation roadmap “and standards for e-invoicing” will be published at Budget 2026, and the Chancellor has confirmed the Budget date as 28 October 2026. When it lands, these are the answers that matter to a small business:
- Whether smaller businesses get a later start date, or one date applies to everyone.
- Whether you must be able to receive e-invoices from suppliers from the same date, even if you only sell to consumers.
- The data standard (the UK flavour of the Peppol invoice format) that software must support.
- Penalties, any soft-landing period and exemptions, for example for businesses that cannot use digital tools.
- Whether software providers will need HMRC recognition, as they do for Making Tax Digital.
- Any support for small businesses: the Budget 2025 text says the government will “explore ways to support businesses with this transition”.
We will update this page on 28 October 2026 and record every change in the changelog at the bottom.
What is an e-invoice, and why doesn’t a PDF count?
An e-invoice is invoice data sent in a structured, machine-readable format straight from the seller’s software into the buyer’s software, so nobody has to open it or retype it. The government’s consultation defines e-invoicing as “the digital exchange of invoice data directly between buyers’ and suppliers’ financial systems, even when those systems differ”.
The same document lists what does not count: invoices in PDF or Word format, images such as JPEG, HTML invoices on a web page or in an email, OCR scans and faxes. So the invoice you email today as a PDF from your accounting app is an electronic invoice in the everyday sense, but it is not an e-invoice for the 2029 mandate.
HMRC’s current guidance on voluntary electronic invoicing (VAT Notice 700/63) says an electronic invoice may be “a structured format such as XML or an unstructured format such as PDF”. That notice still applies today. The 2029 mandate uses the narrower definition: structured data only. Expect Notice 700/63 to be rewritten before 2029.
| PDF by email (today) | E-invoice over Peppol (2029) | |
|---|---|---|
| Format | A picture of an invoice | Structured data (an XML file in a fixed format) |
| How it travels | Email attachment | From your software to your provider, across the Peppol network, to the buyer’s provider and software |
| What the buyer does | Opens, checks and types it in, or uses a scanning tool | Approves a bill that is already filled in |
| What you need | The buyer’s email address | The buyer’s Peppol ID and software connected to an access point |
| Counts for the 2029 mandate | No | Yes |
The content of a VAT invoice does not change. Notice 700/63 already says electronic invoices “must contain the same information as paper invoices”: your VAT number, the customer’s details, the date, the supply, the VAT rate and amounts. The difference is that each item sits in a named field, so software can check it.
What is Peppol? The four-corner model in plain English
Peppol is an international network and set of rules for exchanging e-invoices and other business documents between different software systems. It is used in many EU countries, Australia, New Zealand and Singapore, and since 23 June 2026 it is the UK’s chosen network. Think of it as a postal system for invoices: you don’t need to use the same software as your customer, just as you don’t need the same postman.
It is usually described as a four-corner model:
- Corner 1: you, the seller You create the invoice in your accounting or invoicing software, as you do now.
- Corner 2: your access point An access point is a certified Peppol provider that converts and sends your invoice into the network. Often it is built into your software, so you never see it.
- Corner 3: your customer’s access point The network looks up your customer’s Peppol ID in a public directory to find which access point receives their invoices, and delivers it there.
- Corner 4: your customer The invoice arrives in their software as a draft bill, ready to approve and pay.
The government’s consultation response describes the alternative, a five-corner model, where a copy of the invoice data also goes to the tax authority in real time or close to it. That fifth corner is not part of the 2029 plan. HMRC has said real-time reporting “will not be implemented in 2029” and might follow once e-invoicing is well established.
What is a Peppol ID, and how do you get one in the UK?
A Peppol ID (participant identifier) is your address on the network, the e-invoicing equivalent of an email address. It has two parts: a scheme code that says what kind of number follows, and the number itself. In the official Peppol code list, scheme 9932 is “United Kingdom VAT number”, 0088 is the GS1 Global Location Number (GLN) and 0060 is the D-U-N-S number. A UK business registered with its VAT number would have an ID in the form 9932:GB123456789 (an illustrative number).
You don’t apply to HMRC for a Peppol ID. Your software or access point registers you on the network and publishes your entry in the Peppol directory. Xero, for example, says that when you register for e-invoicing it adds your business name, Peppol participant ID and registration date to the directory, and that your financial data isn’t shared.
Your Peppol ID can be linked to only one access point for receiving at a time. If you change software, you move your ID, as you would port a phone number. Ask any provider how it handles moving your ID in and out.
Do I need e-invoicing as a sole trader or small business?
It depends on two things: whether you are VAT-registered, and who you invoice. The mandate covers VAT invoices, and VAT invoices are issued for sales to businesses and public bodies, not for sales to consumers. The consultation response says it plainly: “many of the smallest businesses who are not required and choose not to be registered for VAT will not be obliged to adopt this technology”.
- If you are VAT-registered and invoice businesses or public bodies, then the mandate applies to those invoices from April 2029, unless the roadmap brings in a later date for smaller firms.
- If you are VAT-registered but sell only to consumers (a shop, a café, an online seller to the public), then your sales are out of scope. You will still receive VAT invoices from suppliers, and the government says it wants VAT invoices to be “issued and received electronically”. How that applies to you is one of the open questions for the roadmap.
- If you are not VAT-registered, then you are not obliged on current plans, whatever kind of customers you have. You can still send e-invoices voluntarily if a customer asks.
- If you supply the NHS, then you may need Peppol now. See the next section.
The VAT threshold decides it for most sole traders
You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. You then have 30 days from the end of the month in which you went over to register, and your registration takes effect from the first day of the second month after you crossed the threshold. It is a rolling 12-month test, not your tax year, which catches out many growing online sellers. Our VAT threshold guide walks through it.
- Example: monthly taxable sales of a growing sole trader
- £7,800
- Rolling 12-month total (12 × £7,800)
- £93,600
- VAT threshold
- £90,000
- Over the threshold by
- £3,600
ResultMust register for VAT, then in scope for B2B invoices
Two more points. Voluntary VAT registration, which many businesses with trade customers choose so they can reclaim VAT, brings you into scope in exactly the same way. And being a sole trader or a limited company makes no difference: the test is VAT registration, not legal form. If you are weighing up which structure to use, see sole trader vs limited company.
How does this fit with Making Tax Digital?
They are separate rules that use the same idea: records and submissions handled by software. All VAT-registered businesses already have to follow Making Tax Digital for VAT, regardless of turnover, for VAT periods starting on or after 1 April 2022. Sole traders and landlords with qualifying income over £50,000 are already in Making Tax Digital for Income Tax, with £30,000 following in April 2027. The consultation response says the government will work with MTD software providers, and that “several MTD providers focused on the small business market” can already provide e-invoicing. In practice, the software you choose for MTD is likely to be the one that sends your e-invoices. Our MTD software guide compares the options.
Do NHS and public sector suppliers need Peppol already?
Some do, today. The government’s consultation response states that “NHS Supply Chain requires its suppliers to issue e-invoices through the Peppol network”. If you supply NHS Supply Chain or an NHS body that follows the same rules, check the invoicing clause in your contract or supplier onboarding pack now, rather than waiting for 2029. This can apply whether or not you are VAT-registered, because it comes from the contract, not from tax law.
For the wider public sector the rule runs the other way round. All bodies covered by the Public Procurement Act 2023 must accept e-invoices that comply with the European standard BS EN 16931. That means a council, school or government department cannot refuse a compliant e-invoice from you, but it doesn’t by itself force you to send one. Individual contracts may ask for it.
- you supply NHS Supply Chain or an NHS trust that asks for Peppol invoices
- a large customer or public body asks you for e-invoices
- you sell to businesses in countries that already use Peppol, such as Belgium
- your software includes Peppol at no extra cost and setup takes minutes
- you are not VAT-registered and nowhere near £90,000
- you only sell to consumers
- no customer has asked for e-invoices
- you plan to change software before 2029 anyway
What should you do now, in 2027 and in 2028?
Nothing is legally required of most businesses until April 2029. But the businesses that found Making Tax Digital painless were the ones that sorted their software early. Here is a sensible order, built around the official timetable.
- Now (October to December 2026): check your position Use the checker above. If you are VAT-registered and invoice businesses, ask your software provider two questions in writing: can it send and receive Peppol e-invoices in the UK, and from when? Read the roadmap after 28 October.
- Now: tidy your customer records An e-invoice needs the buyer’s legal name, address and VAT number in fixed fields. Fix incomplete contacts while you have time, and collect your business customers’ Peppol IDs as they appear.
- 2027: choose or confirm your software If your current tool has no Peppol plan by the time HMRC publishes the technical specification, budget for a switch. Moving accounting software is easiest at the start of a VAT quarter or financial year.
- 2027 to 2028: register and test Register for a Peppol ID through your software, receive a few supplier invoices (Xero sends its own subscription bill as an e-invoice, for example) and send a test invoice to a friendly customer.
- By early 2029: switch over Agree a date with your main business customers, stop emailing PDFs to them, and check that your archive keeps the e-invoices for the usual VAT record-keeping period.
There is no accreditation scheme, no penalty regime and no final technical standard yet. Be wary of anyone selling a long contract today as “HMRC-compliant e-invoicing for 2029”. Monthly plans you can cancel are the safer choice until the specification is published.
New business account offers, fee changes and deadlines, in one short email.
Which software can send and receive Peppol e-invoices?
We checked the UK pages of the five accounting packages most sole traders and micro limited companies use, plus two cheaper invoicing tools that send e-invoices. We used only what each provider publishes about its own product. “Not documented” means we found no UK Peppol feature on the provider’s own pages on 20 October 2026, not that one isn’t coming.
| Software | Send via Peppol (UK) | Receive via Peppol (UK) | Price from | MTD-recognised |
|---|---|---|---|---|
| Xero | Yes. VAT-registered UK businesses can send e-invoices to Peppol-registered businesses. | Yes. Free registration inside Xero; in the UK only VAT-registered businesses can register. | £18 (Ignite) | Yes (Xero states it is HMRC-recognised) |
| QuickBooks Online | No built-in feature, per a QuickBooks team reply of 28 April 2026; third-party apps via its integrations. | No built-in feature | Not captured (live prices only) | Yes (plans listed as MTD for Income Tax ready) |
| Sage Accounting | Via Sage Network partners such as Paya; Peppol not named for UK, Sage says it plans to support it. | As for sending | £20 (Start) | Yes (Sage states HMRC recognition) |
| FreeAgent | Not documented. Invoices are emailed with a PDF; no Peppol articles in its help centre. | Not documented | £19 sole trader, £33 Ltd | Yes (MTD VAT returns filed to HMRC) |
| Zoho Books | Not documented for the UK. Zoho offers Peppol in its Belgian and other EU editions. | Not documented for the UK | £0 (Free), £12 (Standard) | Yes (MTD for VAT and Income Tax listed) |
| Zervant (invoicing only) | Yes, as an e-invoice “premium delivery” to the customer’s e-invoice address (VAT number, GLN or DUNS). Network not named. | Not offered | £10.99 (Starter, 3 deliveries a month) | No, invoicing only |
| Invoice Ninja (invoicing only) | Yes, through its own Peppol access point (Storecove). UK listed as supported. | Yes (automatic on the hosted version) | $18 (Enterprise, 250 credits) | No, invoicing only |
Sources: each provider’s own pages, listed under Sources below. Sage’s pages block automated checks, so its price and Peppol position come from Sage’s published pages as indexed on 20 October 2026; check sage.com before buying. Invoice Ninja is priced in US dollars. Zervant charges Finnish VAT if you are not VAT-registered.
Xero
Xero is the only one of the five large packages whose UK pages describe Peppol sending and receiving today. Registration is free inside your Xero organisation, received e-invoices arrive as draft bills, and Xero sends its own subscription bill as an e-invoice. The catch is the entry plan: Ignite costs £18 a month at the regular price and its plan card lists quotes and 20 invoices, so a business with more invoices needs Grow at £39. Xero’s page doesn’t say which plans include e-invoicing, so confirm that before you choose Ignite.
QuickBooks, Sage, FreeAgent and Zoho Books
None of these four documents UK Peppol sending on its own pages yet. That isn’t a reason to switch today: there are two and a half years to go, the standard isn’t final, and the consultation response notes that several MTD providers can already offer e-invoicing. It is a reason to ask your provider for a date. QuickBooks points UK users to third-party apps. Sage routes e-invoicing through Sage Network partners. FreeAgent sends invoices as PDFs by email. Zoho runs Peppol in its EU editions through Storecove, which suggests the plumbing exists, but its UK help centre has no e-invoicing section. FreeAgent is free with a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account used monthly; see our business bank accounts guide if that matters to you.
Cheaper invoicing tools: Zervant and Invoice Ninja
If you only need to send a handful of e-invoices, for example to one NHS or corporate customer, an invoicing tool can be cheaper than full accounting software. Zervant’s Starter plan (£10.99 a month, or £8.99 a month billed yearly) includes three “premium deliveries” a month, which covers e-invoices or post; the free plan includes none. Invoice Ninja’s Enterprise plan ($18 a month) runs on its own Peppol access point with 250 credits, one per invoice sent, and extra credits cost $50 for 500. Neither is MTD software, so you would still need separate software for VAT returns.
- NHS or corporate suppliers who need Peppol now for a few invoices a month
- businesses whose accountant handles the books in other software
- non-VAT-registered businesses asked for e-invoices by one customer
- VAT-registered businesses that want one tool for invoices, bookkeeping and MTD
- anyone sending more invoices than the plan includes
- businesses that need to receive supplier e-invoices into their books
For a fuller comparison of the big three on everything else they do, see Xero vs QuickBooks vs FreeAgent.
How much will e-invoicing cost a small business?
The government hasn’t announced a free tool, and the consultation response expects “a range of price points, including some low-cost products”. For most VAT-registered businesses the real cost will be the accounting software subscription they already pay for MTD for VAT, if their provider includes Peppol. Here is what the published prices mean for a business sending 20 invoices a month to business customers.
- Xero Ignite: £18 × 12 months (regular price, ex VAT)
- £216
- Peppol registration in Xero
- £0
- Invoice Ninja Enterprise: $18 × 12 months (240 invoices fit in 250 credits)
- $216
- Invoice Ninja cost per invoice ($216 ÷ 240)
- $0.90
- Zervant Starter: £10.99 × 12 months (36 deliveries a year included)
- £131.88
Accounting software with Peppol included, year oneabout £216 ex VAT
Zervant looks cheapest, but its three included deliveries a month cover only a small share of 20 invoices, so it suits low volumes. On the other side of the ledger, some respondents to the government consultation reported spending £30 to £50 to process a single invoice by hand. The government’s foreword cites industry research that e-invoicing adoption cuts late payments by 20%. Those are the government’s figures, not ours, but they show why the mandate is pitched as a saving as well as a rule.
Will there be penalties, a free HMRC tool or accredited software?
Penalties: none have been announced. HMRC will publish legislation by the end of 2027 to 2028, and any penalty regime would be set out there. For comparison, Making Tax Digital for Income Tax uses a points-based system for late submissions; nothing says e-invoicing will copy it. See our MTD penalties guide for how that one works.
A free government tool: none is planned so far. Unlike Poland, the UK has chosen not to run a state platform, and the government’s documents expect the software market to supply products. For Making Tax Digital, HMRC also left software to the market, and free options appeared, often bundled with business bank accounts.
Accreditation: not decided. The government says it will ensure “the right regulatory framework is in place for software providers”. Peppol access points already go through Peppol’s own certification, but a UK scheme on top of that hasn’t been announced. HMRC runs a recognition list for MTD software, so a similar approach is possible. We’ll update this section after the roadmap.
How is the UK approach different from Poland’s KSeF?
Poland’s KSeF, mandatory from 1 February 2026, is a centralised model: every B2B invoice is issued through a Ministry of Finance platform, which validates it and makes it available to the buyer, and the state offers its own free invoicing app. The UK has chosen the decentralised Peppol model used in Belgium and Australia, because, as the consultation response puts it, many countries that chose a central platform did so to tackle “much more significant tax gaps than the UK’s”, while a decentralised model fits Making Tax Digital and leaves businesses free to pick their provider.
Frequently asked questions
When does e-invoicing become mandatory in the UK?
From April 2029, for VAT invoices on business-to-business and business-to-government sales. HMRC’s transformation roadmap, updated on 27 July 2026, confirms the month. The exact day and any phasing by business size are due to be set out in the roadmap at Budget 2026 on 28 October 2026.
Do I need e-invoicing as a sole trader?
Only if you are VAT-registered and invoice businesses or public bodies. Sole traders below the £90,000 VAT threshold who have not registered voluntarily are not obliged on current plans. If you sell only to consumers, your sales invoices are also out of scope.
Is a PDF invoice sent by email an e-invoice?
Not for the 2029 mandate. The government’s definition excludes PDF and Word invoices, images and invoices in the body of an email, because an e-invoice must be structured data that the buyer’s software can read. HMRC’s current voluntary guidance (VAT Notice 700/63) still allows PDFs until the rules change.
What is Peppol in simple terms?
Peppol is an international network for sending e-invoices between different software systems through certified providers called access points. The UK named it the core network for e-invoicing on 23 June 2026. You don’t need the same software as your customer, only a provider connected to Peppol.
How do I get a Peppol ID in the UK?
Your accounting software or Peppol access point registers you, usually using your VAT number under scheme 9932 (United Kingdom VAT number) or a GLN under scheme 0088. You don’t apply to HMRC. In Xero, for example, registration is free and only VAT-registered UK businesses can register to receive.
Will HMRC provide free e-invoicing software?
No free government tool has been announced. The consultation response, published on 26 November 2025, expects the market to provide products at a range of price points, including low-cost ones. Some accounting software, such as Xero, includes Peppol registration in the subscription at no extra charge.
Are there penalties for not using e-invoicing?
None have been announced as of 20 October 2026. HMRC plans to publish full guidance, standards, technical specification and legislation by the end of 2027 to 2028. Any penalties would be set out in that legislation.
Will invoices be reported to HMRC in real time?
Not in 2029. The government says some form of real-time reporting may be introduced only once e-invoicing use is well established. In 2029 invoices go between businesses’ software over Peppol without a copy going to HMRC at the same time.
I supply the NHS. Do I need Peppol now?
Possibly. NHS Supply Chain already requires its suppliers to send e-invoices through the Peppol network, so check your contract and onboarding pack. This comes from the contract, not tax law, so it can apply even if you are not VAT-registered.
Do I need to change accounting software before 2029?
Not yet. HMRC’s technical specification is due by the end of 2027 to 2028, and several providers are still building UK Peppol support. Ask your provider in writing whether and when it will send and receive Peppol e-invoices, and plan a switch for 2027 if it has no date.
Changelog
- : first published. Facts checked against GOV.UK documents up to the HMRC roadmap update of 27 July 2026; software checked on providers’ own pages. Next scheduled update: 28 October 2026, when the e-invoicing roadmap and standards are due at Budget 2026.
Sources
- HM Treasury, Budget 2025: overview of tax legislation and rates, paragraph 2.34 E-invoicing
- HMRC, Transformation roadmap progress update 2026, annex (updated 27 July 2026)
- HMRC and DBT, Promoting electronic invoicing: consultation response (26 November 2025)
- HM Treasury, Tax Update 2026 summary: core interoperability network announcement (23 June 2026)
- HM Treasury, Chancellor’s letter to the Treasury Select Committee: Budget 2026 date
- HMRC, Electronic invoicing (VAT Notice 700/63)
- GOV.UK, Register for VAT: when to register
- HMRC, Making Tax Digital for VAT
- Office of the Small Business Commissioner, Spotlight on e-invoicing
- OpenPeppol, code lists: participant identifier schemes (v9.7)
- Xero UK, eInvoicing software and pricing plans
- QuickBooks UK community, “How do I integrate Peppol?” (QuickBooks team reply, 28 April 2026) and pricing
- Sage UK, Sage Accounting invoicing, Sage Network e-invoicing and Sage Accounting
- FreeAgent, pricing and Send an invoice to a contact
- Zoho Books UK, pricing and E-invoicing in Belgium (Zoho Books help)
- Zervant, e-invoicing and pricing
- Invoice Ninja, e-invoicing and Peppol, user guide and pricing
- Ministry of Finance (Poland), Krajowy System e-Faktur (KSeF)
Checked on 20 October 2026 against GOV.UK documents and the providers’ published pages. The e-invoicing rules are still being designed and will change at Budget 2026 on 28 October 2026; the official documents and the providers’ own terms always prevail.