Are you ready for mandatory e-invoicing?

Are you ready for mandatory e-invoicing?

When the decision requiring e-invoicing was announced at the autumn Budget, chancellor Rachel Reeves said it was designed to ‘modernise the tax system’, confirming from April 2029 businesses will be required to issue all VAT invoices as e-invoices.

This mandatory change was announced without much fanfare from the Treasury or HMRC, although the concern is that the system will be rolled out universally without a staggered start for smaller businesses.

A survey last year of 800 SMEs ranging from manufacturing to transport and business services, found that 25% of SMEs were ‘not at all familiar’ with the definition of an e-invoice when the research was conducted, with 69% of SMEs reported that they had not used e-invoicing before, and 91% said they had not seen any HMRC communications about e-invoicing at the time of the research in spring 2025.

Despite some not understanding the term e-invoice, many businesses may already be using e-invoicing without realising it!

Jon Stride, chair of the ATT’s technical steering group, said: ‘Without greater clarity and engagement, there is a risk that many businesses will remain underprepared for the shift, potentially undermining the intended benefits of e-invoicing, including improved efficiency, reduced errors, and enhanced tax compliance.’

Overall, 5% of SMEs said they did not use any accounting software at all. For the non-software users, 9% were in the manufacturing and construction sectors and 3% were in the transport, retail, and accommodation sectors.

If you are not sure about e-invoicing and would like to discuss the various software’s, please contact us today – we are ready to help!