UK tax and compliance

E-invoicing in the UK from 2029

What mandatory e-invoicing means for UK businesses, how the Peppol network works, what HMRC has confirmed so far and how to prepare.

Talk to an expert

This guide is part of our UK tax and compliance guide, covering Making Tax Digital, e-invoicing, CIS, UK GDPR and audit trails.

UK tax and compliance guide

What e-invoicing is

E-invoicing is the exchange of invoice data in a structured, standard format directly between a supplier's and a customer's finance systems, even when those systems are different. The invoice arrives as data the receiving system can read, rather than a document someone has to open and type in.

From 1 April 2029, VAT invoices in the UK will have to be issued this way. It builds on Making Tax Digital for VAT: where Making Tax Digital moved VAT records and returns into software, e-invoicing does the same for the invoices passing between businesses.

What we know

What has been confirmed so far

The start date and the network are settled. The detailed scope, exemptions and technical standards will be published between October 2027 and April 2028.

  • Start date

    1 April 2029

    VAT invoices must be issued as e-invoices from this date, as announced at Budget 2025 and confirmed in HMRC's roadmap.

  • Who

    VAT-registered businesses and public bodies

    Including sole traders, partnerships, charities and overseas businesses registered for UK VAT. Limited exemptions are expected, including for people who are digitally excluded.

  • Both directions

    Issue and receive

    It isn't only about sending. You'll also need to be able to receive e-invoices from your suppliers into your own system.

  • Network

    Peppol

    Invoices travel between businesses through certified Peppol access points, so suppliers and customers can use different software.

What won't count as an e-invoice

An e-invoice is structured data that one system can read straight into another. Digital files that a person has to read and re-key don't qualify:

  • PDF files
  • Word or other word-processed documents
  • Images such as JPEG scans
  • HTML invoices on a web page or in an email
  • Faxed images
Roadmap

HMRC's timeline to April 2029

HMRC published its e-invoicing roadmap on 28 October 2026. It sets out when the remaining decisions will be made and when businesses can start testing.

  1. Already decided

    Mandate and network confirmed

    VAT invoices must be issued as e-invoices from 1 April 2029, and Peppol will be the UK's core interoperability framework.

  2. Budget 2026 to October 2027

    Detailed design

    The government continues the detailed design of the regime and consults on technical standards.

  3. October 2027 to April 2028

    Requirements published

    Scope, exemptions, standards, guidance, business identifiers and service provider requirements are published, giving at least 12 months to prepare.

  4. April 2028 to April 2029

    Testing and onboarding

    A government awareness campaign runs while software providers, businesses and public bodies test and onboard.

  5. 1 April 2029

    E-invoicing takes effect

    VAT-registered businesses and public bodies must be able to issue and receive VAT invoices as e-invoices, unless an exemption applies.

Based on HMRC's e-invoicing roadmap published on 28 October 2026. This guide is general information, not tax advice, and details will change as requirements are published, so check the latest HMRC guidance or speak to your accountant.

How it works

How an invoice travels over Peppol

Peppol works like a postal network for invoices. You and your customer each use an access point, and the access points pass invoices between them in a standard format.

  1. 1

    You raise the invoice

    Your finance system creates the VAT invoice as structured data rather than a document.

  2. 2

    Your access point sends it

    Your software or e-invoicing provider's certified Peppol access point checks the format and sends it on.

  3. 3

    Their access point receives it

    Your customer's access point picks the invoice up from the network, whichever provider they use.

  4. 4

    It lands in their system

    The invoice arrives in your customer's finance system ready to match, approve and pay, with no re-keying.

The benefits go beyond compliance. NHS Shared Business Services reports that electronic invoices are paid 26 days faster on average than paper or email invoices, and structured data makes it harder to tamper with bank details on an invoice.

Get ready

How to prepare now

The detail is still to come, but there is plenty you can do before it arrives.

  1. 1

    Map your invoicing today

    List how invoices are raised, sent, received and approved across the business, including any sent from systems outside finance.

  2. 2

    Tell the people involved

    Finance, tax, procurement and IT teams all have a part to play, and suppliers and customers will be making the same change.

  3. 3

    Tidy customer and supplier records

    Check VAT numbers, legal names and addresses, so invoices can be addressed and matched correctly once identifiers are confirmed.

  4. 4

    Talk to your providers and advisers

    Ask your finance system partner and accountant what they plan to offer and when, before the detailed requirements land.

  5. 5

    Automate purchase invoices

    Getting supplier invoices into your system as data, matched to orders and receipts, gives you the benefits early and makes the switch smaller.

  6. 6

    Plan time to test

    Leave room to test sending and receiving with key customers and suppliers during the onboarding period before April 2029.

Business Central

E-invoicing in Business Central

Microsoft Dynamics 365 Business Central already sends and receives Peppol e-invoices in other countries. The UK-specific rules will follow once HMRC publishes them.

  • E-Documents app

    A built-in framework for sending and receiving electronic invoices and credit notes, with statuses and logs for each document.

  • PEPPOL BIS 3.0

    Business Central's standard Peppol format, ready to use with the network the UK has chosen.

  • Connectors to access points

    Ready-made connections to providers including Avalara, B2BRouter, Continia, Logiq, Pagero and SignUp, so you don't need to build an integration.

  • Incoming invoices as drafts

    Received e-invoices become purchase documents to review, match and post, and the Payables Agent can take on much of that work.

Microsoft Dynamics 365 Business Central
Further reading

Related guides and articles

Enquiry form

Want to get ahead of e-invoicing?

Tell us how you send and receive invoices today, and we'll show you how Microsoft Dynamics 365 Business Central could get you ready for 2029.

TD SYNNEX and its elite Dynamics partner network need the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.

FAQ

Frequently asked questions

From 1 April 2029, VAT-registered businesses and public bodies will need to be able to issue and receive VAT invoices as e-invoices, unless an exemption applies. The government plans to publish the detailed requirements 12 to 18 months before that date.

No. An e-invoice is structured data exchanged directly between the supplier's and customer's systems. PDFs, Word documents, scanned images, HTML invoices and faxes are digital files but not structured data, so they won't count.

Peppol is an international network and set of standards for exchanging e-invoices and other business documents. Each business connects through a certified access point, usually provided by its software or e-invoicing provider, so businesses using different systems can still exchange invoices. The UK has confirmed Peppol as its core framework, with HMRC acting as the UK Peppol Authority.

The requirement applies to VAT invoices. VAT invoices are not required for supplies to consumers or to businesses that aren't VAT registered, so those sales are outside the core requirement, although businesses can choose to use e-invoicing more widely.

Yes. Business Central's E-Documents app supports the PEPPOL BIS 3.0 format and has connectors for e-invoicing providers including Avalara, B2BRouter, Continia, Logiq, Pagero and SignUp. You need a contract with the provider you choose, which may carry its own cost. The detailed UK requirements are still to be published, so expect updates as they are confirmed.

Review how you raise, send, receive and approve invoices today, make sure your finance, tax, procurement and IT teams know the change is coming, talk to your accountant or adviser, and check what your finance system and software providers plan to offer. Tidying customer and supplier records now will make onboarding easier later.