A short guide
What is a receipt?
A receipt confirms that you have been paid. An invoice asks for money; a receipt says it arrived: how much, on what day, how it was paid and what it was for. gov.uk puts it in one line: an invoice is not the same as a receipt, which is an acknowledgement of payment.
Source: gov.uk, Invoicing and taking payment from customers, checked on gov.uk on 5 October 2026.
What should a receipt show?
- Your business name, so it is clear who received the money.
- Who paid you.
- The date the money arrived, and how: bank transfer, card, cash or cheque.
- What it paid for, line by line, and the total.
- How much was paid now, anything paid before, and what is left to pay.
- A receipt number of its own, and the invoice it pays if there was one.
When is a receipt also a VAT invoice?
If you are VAT registered and sell without an invoice, the receipt is the VAT invoice. For a sale of £250 or less a simplified VAT invoice is enough, if your customer agrees: your name, address and VAT registration number, the time of supply, a description of what was supplied, and for each VAT rate the total payable including VAT and the rate. Above £250 a full VAT invoice is needed, which also names the customer and their address. When you leave the invoice number empty, the tool asks for exactly these.
Source: HMRC, VAT Notice 700, sections 16.3 and 16.6, checked on gov.uk on 5 October 2026.
What if I already sent an invoice?
Then the invoice was your VAT invoice and the receipt only confirms the payment. HMRC's guide says that where a card slip and an invoice or receipt are both given for a sale, only one of them may be in the form of a VAT invoice. So a receipt made against an invoice names the invoice and says it is not a VAT invoice.
Source: HMRC, VAT Notice 700, section 16.6.2, checked on gov.uk on 5 October 2026.
Made the invoice in the free invoice generator? It is offered at the top of the form: one tap and the receipt carries its lines, counts any deposit already paid and marks the rest as received.
Must I give a receipt for cash?
If you are VAT registered and a customer pays in cash for a VAT invoice, you must give them a dated receipt for the amount if they ask. They may need it because they account for VAT on what they have paid rather than what they have been invoiced.
Source: HMRC, Record keeping, VAT Notice 700/21, section 4.7, checked on gov.uk on 5 October 2026.
If customers pay you large amounts in cash, your business may need to be registered for an anti-money laundering scheme.
Source: gov.uk, Invoicing and taking payment from customers: payment obligations, checked on gov.uk on 5 October 2026.
How long should I keep receipts?
If you are VAT registered, keep your business records for VAT for at least 6 years. Save each PDF where you will find it again.
Source: HMRC, Record keeping, VAT Notice 700/21, section 2.4, checked on gov.uk on 5 October 2026.