Invoicing software compared
Invoicing is the cheapest thing accounting software does, which is why so much of it is given away free. The question is not which invoicing tool is best, it is whether you need one at all or whether you are really buying bookkeeping.
Prices checked 10 September 2026 · List prices per month, excluding VAT
The two things people mean by invoicing software #
Searches for invoicing software split into two quite different jobs, and the answer is different for each.
- I need to send an invoice. This is close to free. A dedicated invoicing tool or a generator does it.
- I need to run my books. Invoicing is one feature of an accounting package, and you are paying for the VAT return, the bank feed and the expense tracking.
Paying £39 a month for accounting software when all you do is raise six invoices a year is the most common overspend in this area. It is also the easiest to avoid.
The free options #
| Tool | Price | Limits | VAT | CIS |
|---|---|---|---|---|
| Zoho Invoice | Free | Up to 2 users, 3 projects, 500 invoices a year, with Zoho branding on the document | Yes | No |
| This site's invoice generator | Free | No account, no storage. You fill it in and print or save as PDF each time | Yes, including the construction reverse charge | Yes |
Free invoicing tools are genuinely free rather than trials, because the vendor is hoping you will grow into the paid accounting product later. The limits are on volume and branding rather than on the invoice being valid.
What the accounting packages charge #
If you need the bookkeeping as well, these are the same list prices tracked on the accounting software comparison. Invoicing is included in every plan.
If you work in construction #
This is where most invoicing tools quietly fail, and it is worth checking before you commit.
A construction invoice frequently needs two things that general invoicing software has never heard of: a CIS deduction taken from labour only, and the domestic reverse charge, where VAT is stated on the invoice but not added to the total.
| Product | CIS | Reverse charge |
|---|---|---|
| QuickBooks | From the Sole Trader plan upward | Yes |
| Xero | Available as a paid add-on | Yes |
| FreeAgent | Yes on the Limited Company plan | Yes |
| Most dedicated invoicing tools | No | Usually not |
| Word or Excel templates | No | Only if you add the wording yourself |
Getting the reverse charge wording wrong is not cosmetic. Charging VAT when the reverse charge applies means your customer has paid you VAT they cannot reclaim, and unwinding it afterwards is your problem. The invoice generator on this site handles both, which is why it exists.
What a UK invoice must actually show #
Whatever tool you use, the legal requirements are the same, and they are shorter than people expect.
- A unique, sequential invoice number
- Your business name and address
- The customer's name and address
- The date of the invoice, and the tax point if different
- A clear description of what was supplied
- The amount, and the total due
A VAT invoice adds your VAT registration number, the rate applied to each item, and the VAT amount. A proforma is not a VAT invoice and must say so. None of that requires software: it requires the fields to be there.
When paying for it starts to make sense #
Nobody pays for invoicing software because the invoice looks nicer. They pay for it when chasing money starts costing real time.
- Automatic reminders. The single feature most likely to pay for itself.
- Recurring invoices, if you bill the same clients every month.
- A live list of what is outstanding, rather than a folder of PDFs.
- Payment links, which measurably shorten how long invoices sit unpaid.
If none of those describes your week, free is the right answer and the money is better spent elsewhere.
Which to pick #
- A handful of invoices a year: a free generator. No account, no subscription, no data to maintain.
- Regular invoicing, nothing else: a free dedicated tool such as Zoho Invoice, until you hit its limits.
- Invoicing plus bookkeeping and VAT: an accounting package, chosen on total cost rather than on its invoicing.
- Construction: check CIS and reverse charge support before anything else. It narrows the field faster than price does.
Common questions #
What is the best free invoicing software in the UK?
Zoho Invoice is free for up to 2 users and 500 invoices a year, with its own branding on the document. For occasional invoices, a generator that produces a compliant PDF without an account at all is simpler still. Free accounting packages are rarer, because invoicing is the cheap part to give away.
Do I need invoicing software or accounting software?
If you only raise invoices, invoicing software is enough and often free. If you also need to track expenses, file a VAT return or run payroll, you need an accounting package, and the invoicing comes bundled with it. Paying for accounting software purely to send invoices is the expensive way round.
Which invoicing software handles CIS?
Very few. QuickBooks handles CIS from its Sole Trader plan upward and Xero offers it as an add-on. Most dedicated invoicing tools have no concept of a CIS deduction at all, which means the subcontractor has to work it out and enter it by hand.
Can I just use a Word or Excel invoice template?
Yes, and for a handful of invoices a year it is entirely reasonable. The risks are practical rather than legal: a duplicated invoice number, a missing mandatory field, or the wrong VAT wording. Any of those can hold up payment.
What must a UK invoice show?
A unique sequential number, your name and address, the customer's name and address, the date, a description of what was supplied, and the amount. A VAT invoice also needs your VAT number, the tax point, the rate applied and the VAT amount. Construction work under the reverse charge needs a statement that the reverse charge applies.
Is invoicing software worth paying for?
It becomes worth paying for when chasing payment starts costing you time. Automatic reminders, recurring invoices and a record of what is outstanding are the features people actually end up paying for, not the invoice itself.