UK e-invoicing becomes mandatory in April 2029. Here's what it means if you're a sole trader.
From 1 April 2029, every VAT invoice in the UK must be a structured electronic invoice. Typing up a Word doc and emailing a PDF will no longer count. Here's the plain-English version — no jargon, no panic.
What's actually changing
At Autumn Budget 2025, the government confirmed that e-invoicing becomes mandatory for all VAT invoices from 1 April 2029, covering invoices between businesses (B2B) and to the public sector (B2G). An "e-invoice" here has a specific technical meaning: structured, machine-readable invoice data that travels directly between software systems. The UK has confirmed Peppol — the network the NHS already uses for its suppliers — as the central infrastructure.
What this is not: in the first phase, there is no real-time reporting of your invoices to HMRC. The government deliberately chose a decentralised model — invoices flow business-to-business, with HMRC outside the exchange. The full technical roadmap is due at Budget 2026.
Does this apply to you?
The mandate covers VAT invoices, so it directly binds VAT-registered businesses — including VAT-registered sole traders, contractors and small limited companies. If you're under the VAT registration threshold, you're not directly required to comply.
But there's a practical catch for everyone else: your bigger clients will be in scope. Main contractors, agencies and corporate customers moving their systems to structured e-invoices will increasingly expect suppliers to send them the same way. The direction of travel is one-way.
Why the government is doing it
Beyond tax efficiency, ministers have been explicit that this is a late-payments measure: structured invoices land directly in the customer's system, can't sit unopened in an inbox, and are materially less likely to be paid late. Which happens to be the exact problem Dunn exists to solve.
Dunn is built for this transition. Every Dunn invoice is already structured data under the hood — line items, VAT breakdowns, CIS deductions, your details and your client's, including VAT numbers. Peppol support is on our roadmap ahead of the mandate, so Dunn users will be e-invoicing-ready without changing how they work: create the invoice, Dunn handles the format and chases it until it's paid.
What to do now (and what not to)
- Don't panic-buy enterprise software. 2029 is a deadline, not an emergency, and the detailed standards land at Budget 2026.
- Do get off manual invoicing. If your invoices live in Word or Excel today, the mandate will eventually outlaw that workflow for VAT invoices. Moving to invoicing software now means the 2029 switch happens in your software, not in your working day.
- Keep your details structured. Your VAT number, your client's VAT number, proper addresses and itemised lines are all required fields on a compliant e-invoice. Dunn captures all of them today.
The timeline
- November 2025 — mandate confirmed at Autumn Budget 2025.
- June 2026 — Peppol confirmed as the central infrastructure.
- Budget 2026 — full implementation roadmap and format standards due.
- 1 April 2029 — mandatory e-invoicing for all VAT invoices begins.
Dunn is free during early access — invoicing, automated payment chasing, and a head start on 2029. Create your first invoice in two minutes →