Dave, his spreadsheet and round two
Meet Dave, a plumber we made up for this article, though you may know several. Dave invoices from a spreadsheet he built in 2011: one tab per job, a formula for the VAT, export to PDF, email, done. He has only just survived Making Tax Digital for Income Tax, which started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000.
And now, round two. From April 2029, the government wants every VAT invoice to be a structured e-invoice, sent over a network rather than attached to an email. Dave’s PDF will still look lovely. It just won’t be an e-invoice.
Let’s be honest, even though we sell the software: this is more red tape, and nobody at the plumbers’ merchant asked for it. You are being nudged off a free tool you know inside out and onto a paid service, with new acronyms thrown in. We get it. The shoebox era is ending, and we would like to make what replaces it cheap and painless.
What is decided, and what is still in the post
| Date | What happened or is planned | Status |
|---|---|---|
| Today | Electronic invoices, PDFs included, are valid with your customer’s agreement (VAT Notice 700/63) | Current rules |
| 26 November 2025 | Budget 2025: all VAT invoices to be issued as e-invoices from April 2029, B2B and B2G | Announced policy |
| 23 June 2026 | Peppol confirmed as the core interoperability network | Announced policy |
| 28 October 2026 | Budget 2026: implementation roadmap expected | Pending |
| April 2029 | Mandatory e-invoicing for VAT invoices | Planned, not yet in legislation |
The consultation response of 26 November 2025 adds a few useful details: a decentralised model, with no central government platform; no real-time reporting in 2029; and very small businesses that are not VAT registered are not in scope, nor are invoices to consumers. Whether large businesses start before small ones, which exact format will apply and what the penalties will be are still open questions. Many websites already quote a “large firms 2029, small firms 2030” split; it has not been confirmed officially.
The full story, from the 2025 consultation onwards, is in UK e-invoicing: from the 2025 consultation to the April 2029 mandate, and the MTD side in Making Tax Digital for VAT and Income Tax.
Yet another HMRC thing: what people are saying
Fatigue is the word. Writing about MTD in The Spectator on 28 March 2026, the journalist Iona Bain described the old way of doing things as “stuffing receipts into a shoebox”. That way is going, for income tax first and for invoices next.
Accountants are not asking to cancel the plan, but to give people time. Responding to the Budget, ICAS said on 28 November 2025 that “at least two years would be necessary for some businesses” to get ready.
The government’s own pitch, in its announcement of 13 February 2025, is that “E-invoicing simplifies processes, reduces errors and helps businesses to get paid faster.” Fine. Let’s hold everyone to the last part, because an e-invoice does not chase a late payer on its own.
What Le Frac does for you today (and what it doesn’t)
First, what’s missing: Le Frac does not send e-invoices over Peppol in the UK. Nobody has to yet, and we will say more once the roadmap is out. What it does today:
- VAT invoices in pounds sterling, sent by email as PDFs;
- automatic email reminders written for UK law, with statutory interest and the fixed sum under the Late Payment of Commercial Debts (Interest) Act 1998 calculated for you and added if you choose to claim them (see Late Payment Act 1998: statutory interest and fixed sums);
- a payment page showing your Faster Payments details.
Prices, in pounds, with no VAT charged to a UK business: Essential at £50 a year per person (£5 a month), email reminders included; Small business at £19 a month or £190 a year, with 2 people, a customisable sequence, SMS and payment links; SME at £59 a month or £590 a year. Beyond the included volume, £0.10 per extra invoice issued. There is no free trial: the first period is paid when you subscribe, and monthly plans can be cancelled at any time. Everything is on Le Frac pricing, the comparison with Xero, QuickBooks and FreeAgent puts list prices side by side, and our e-invoicing guide for the UK is updated as HMRC publishes more.
Curious what an e-invoice actually looks like? Drop one into our free e-invoice validator: it checks the file against Peppol BIS and EN 16931, the rules used on the network the UK has chosen (the exact UK format is still to be confirmed).
Frequently asked questions
Can I keep invoicing from a spreadsheet or Word?
Today, yes: a PDF by email is a valid VAT invoice once your customer agrees to electronic invoices. From April 2029, under the announced policy, VAT invoices to businesses and the public sector must be structured e-invoices. If you are not VAT registered, you are not in scope.
Is UK e-invoicing law yet?
Not yet. It is announced government policy (Budget 2025 and the consultation response of 26 November 2025), with Peppol confirmed as the core network on 23 June 2026. The implementation roadmap is due at the Budget on 28 October 2026.
Will small businesses get more time?
Nothing official says so on 20 October 2026. Some websites mention large businesses in 2029 and small ones in 2030, but that phasing has not been confirmed. Watch the 28 October 2026 Budget.
Does Le Frac offer a free trial?
No. The first period is paid when you subscribe, and monthly plans can be cancelled at any time. Essential costs £50 a year per person, with email reminders included.
Sources
- GOV.UK — VAT Notice 700/63: electronic invoicing (gov.uk)
- GOV.UK — Promoting electronic invoicing: consultation response (26 November 2025) (gov.uk)
- GOV.UK — Budget 2025 (gov.uk)
- GOV.UK — Tax update 2026: simplification, modernisation and fairness (23 June 2026) (gov.uk)
- GOV.UK — Chancellor letter to the Treasury Select Committee: Budget 2026 date (gov.uk)
- GOV.UK — Government sets out plans for e-invoicing overhaul to cut paperwork (13 February 2025) (gov.uk)
- GOV.UK — Check if you’re eligible for Making Tax Digital for Income Tax (gov.uk)
- The Spectator — The taxman is coming for the self-employed (28 March 2026) (spectator.com)
- ICAS — Autumn Budget 2025: e-invoicing will go ahead from 2029 (28 November 2025) (icas.com)
This article summarises the official texts to help you get organised. It is not a substitute for personalised advice from your accountant.