E-invoicing is coming — but small businesses deserve support, not dismissal
By Esther Guy, FMAAT Licensed Accountant, Freedom Financials, Dorking
9th October 2026
This week I visited the Digital Accountancy Show at ExCeL London. Think a huge conference hall, dramatic lighting, pyrotechnics and stages dotted around the arena. Delegates wear headphones to listen to their chosen presentation above the background noise. It’s certainly a fancy way to spend a day learning about accountancy!
These events form part of my continuing professional development, which is a requirement of my accontancy practising licence. They’re also an opportunity to meet colleagues, speak to suppliers and understand changes that could affect my clients.
One session in particular gave me plenty to think about: e-invoicing.
What is e-invoicing?
The session featured representatives from Sage and HMRC explaining how invoice information will be required to move directly from a supplier’s software into a customer’s financial system, digitally.
An e-invoice contains structured digital data that the receiving system can process automatically. Simply emailing a PDF, Word document, spreadsheet or photograph of an invoice does not make it an e-invoice.
With so much attention on Making Tax Digital, I felt this was a development worth taking time to understand.
When is it coming?
The government has announced mandatory e-invoicing for VAT invoices from April 2029, with an implementation roadmap due to be released in the Budget 2026.
I’ll be watching the roadmap closely to understand what preparation my clients will need and how it is that I'll be able to support them.
I can see the benefits
I love technology. When it works well, it can save time, reduce repetitive tasks and make running a business easier.
The HMRC presenter on stage described how e-invoicing could reduce errors and delays: less retyping, fewer queries about invoice details and less chance of an invoice sitting unnoticed in somebody’s email inbox.
Those improvements could help businesses get paid sooner. They won’t solve every reason for late payment, but reducing administrative hold-ups would be welcome.
For accountants like me, less time correcting data entry could also mean more time helping clients understand their figures and plan ahead.
But I’m still fond of a shoebox
What troubled me was the way “shoebox clients” were discussed. I came away feeling that to HMRC businesses keeping paper records were being dismissed as somehow less proper or less worthwhile.
I disagree.
A “shoebox client” might keep receipts in a box, write invoices in a duplicate book and bring everything to their accountant at year end. Behind that box might be a window cleaner, painter and decorator or hairdresser working hard to earn a living.
They provide services, support their families and take responsibility for their tax affairs. Keeping paper records does not make their business any less legitimate.
And I’ll admit it: I enjoy working through somebody’s shoebox. There’s a person and a working business behind those receipts.
Change needs to work for the smallest businesses too
My concern is how change will be introduced for people who have limited time, no confidence with technology and no money to spend on new systems.
A new requirement can sound straightforward from a conference stage but for someone who spends their day serving customers and catching up with paperwork in the evening, it may feel very different.
As policy develops, I want small businesses to have clear explanations, affordable options, practical support and proper consideration of barriers to digital use. Software providers have an important role, but the needs of the people using their products must be central to the discussion.
How I support my clients
My role is to translate the changes into plain English: what is changing, whether it affects your business, when you need to act and what your options are.
Where software is required, or would genuinely help, I can support you in choosing and using a suitable system.
I feel strongly about this because I like small businesses and the people behind them. They turn up in the rain, juggle family responsibilities and often work weekends to keep things going. They deserve an accountant who understands their working day as well as their figures.
If you’re concerned about digital changes, you’re welcome to contact me at Freedom Financials in Dorking. We can work through what applies to you, one step at a time.
WhatsApp: 01306 400 480
E-invoicing: five common questions
Is an emailed PDF an e-invoice?
No. An e-invoice uses structured digital data that can be exchanged and processed between financial systems. An emailed PDF alone does not meet that definition.
When will e-invoicing become mandatory in the UK?
The government has announced an April 2029 start for mandatory e-invoicing for VAT invoices. An implementation roadmap is due at Budget 2026.
Will it affect me if I’m not VAT registered?
The announced mandate only applies to VAT invoices only right now. I await further details on how these change impact unregistered businesses who trade with VAT registered firms.
Is e-invoicing the same as Making Tax Digital?
No. E-invoicing concerns how invoice information is exchanged between systems. Making Tax Digital concerns digital tax records and submissions to HMRC. The two can use related technology, but they are separate requirements.
Do I need to buy new software now?
The announced mandate does not require you to buy software today. Before changing systems, check what your existing software supports and wait for the implementation detail needed to make an informed decision.
Policy information checked on 9th October 2026. This article gives general information; the rules affecting an individual business will depend on its circumstances and the final implementation details.
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