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HMRC e-invoicing mandate

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.

Updated October 2026 · Written by the team at Dunn

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)

The timeline

Dunn is free during early access — invoicing, automated payment chasing, and a head start on 2029. Create your first invoice in two minutes →