How the checker decides
The planned rules are tied to VAT and to who you invoice, not to whether you're a sole trader, partnership or limited company.
| You are… | Invoicing… | Result |
|---|---|---|
| VAT registered | Councils, NHS bodies, schools or other public bodies (B2G) | Likely to apply from April 2029 |
| VAT registered | Other businesses, including main contractors on public contracts (B2B) | Likely to apply from April 2029 |
| VAT registered | Homeowners and private customers only | Not expected to apply |
| Close to the £90,000 VAT threshold | The public sector or other businesses | Could apply once you register for VAT |
| Not VAT registered | Anyone | Not expected to apply |
What it means for public sector work
- Public bodies are in scope. The plans cover VAT invoices to councils, NHS bodies, schools, government departments and other public bodies (business-to-government, or B2G), as well as invoices between businesses.
- Many public buyers are already set up. Many public bodies, including NHS bodies, can already receive e-invoices over the Peppol network, so some may ask for them before 2029.
- The buyer reference matters. A Peppol e-invoice needs a buyer reference or purchase order number. Public sector customers usually won't pay an invoice without one, so ask for it before you start the work.
- Subcontracting counts too. If you invoice a main contractor on a council contract, that's a business-to-business invoice and is expected to be covered if you're VAT registered.
For how invoices get paid on public contracts, including 30-day terms and late payment, see getting paid on public sector contracts.
What's been announced so far
- At the Autumn Budget on 26 November 2025, the Government said e-invoicing is planned to be mandatory for VAT invoices between businesses (B2B) and to the public sector (B2G) from 1 April 2029.
- On 23 June 2026, Peppol was confirmed as the network invoices will travel over.
- The format is expected to be based on Peppol BIS Billing 3.0 and the European standard EN 16931. The UK standard hasn't been published yet.
- An implementation roadmap is expected at the Autumn Budget on 28 October 2026. Smaller businesses may be phased in later.
- Invoices to homeowners and other private customers aren't included, and businesses that aren't VAT registered aren't expected to be covered.
- It still needs legislation before it becomes law.
For the full picture, timeline and a get-ready checklist, read our guide to UK e-invoicing from April 2029.
What an e-invoice actually is
An e-invoice isn't a PDF. It's a data file (usually XML) that your customer's finance system reads automatically, with every detail in its own labelled box: your VAT number, the buyer reference, each line, the VAT rate and the total. Want to see one? Open an example in our free e-invoice viewer.
General information based on Government announcements and HMRC guidance (checked 18 October 2026), not tax advice. The final rules haven't been published. Check GOV.UK or speak to your accountant about your own situation.
Questions
Will e-invoicing apply to invoices I send to councils and the NHS?
Under the Government's plans, VAT invoices to the public sector (B2G), including councils, NHS bodies and schools, are expected to need to be e-invoices from 1 April 2029. Many public buyers, including NHS bodies, can already receive Peppol e-invoices. The rules still need legislation and haven't been finalised.
Does e-invoicing apply to me?
It's expected to apply if you're VAT registered and you invoice the public sector or other businesses, from 1 April 2029. Smaller businesses may be phased in later.
I'm a subcontractor on a council contract. Does it apply?
Your invoices go to the main contractor, which is a business, so if you're VAT registered they're expected to be covered as business-to-business (B2B) invoices from April 2029.
I'm not VAT registered. Do I need to send e-invoices?
Businesses that aren't VAT registered aren't expected to be covered. If your turnover is heading towards the £90,000 VAT threshold, it could apply once you register.
Do invoices to homeowners need to be e-invoices?
No. The plans cover invoices to businesses and the public sector. Invoices to homeowners and other private customers are not included.
Are the rules final?
Not yet. The UK technical standard hasn't been published, the law still needs to be passed, and an implementation roadmap is expected at the Autumn Budget on 28 October 2026.