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Posted: Fri 14th Feb 2025
The government has launched a consultation on electronic invoicing (e-invoicing) proposals.
It is seeking the views of businesses and representative groups on encouraging and standardising the digital exchange of invoice information directly between buyers and suppliers.
Minsiters say e-invoicing can businesses get their tax right first time, reduce invoicing and data errors, improve the accuracy of VAT returns, cut red tape and save time and money.
An example of where e-invoicing improving cash flow highlighted by the government is a UK NHS trust where e-invoices are ready for processing within 24 hours, compared to 10 days under paper invoicing. It said the e-invoices are typically paid almost twice as quickly than paper invoices, with supplier queries reduced by an average of 15%.
According to a report by Sage, a partner of Enterprise Nation's Tech Hub, e-invoicing can lead to annual savings of around €13,500 (£11,233) for small businesses by almost halving the time spent processing invoices.
Enterprise Nation has called for measures around boosting the use of e-invoicing in our submissions to government, including in our 21 small business recommendations sent to the Treasury.
We have urged the government to consider a phased rollout of mandatory e-invoicing for B2B transactions in the UK, which could successfully encourage technology adoption while allowing businesses time to prepare.
James Murray, exchequer secretary to the Treasury, said:
"E-invoicing simplifies processes, reduces errors and helps businesses to get paid faster. By cutting paperwork and freeing up valuable time and money, it will help improve firms' productivity and their ability to grow and succeed."
"Small businesses are at the heart of our economy and vital to our growth mission. The potential of digitising taxes, speeding up payments and streamlining administrative tasks will provide real benefits to the economy, supporting smaller firms and boosting growth.
"This is why we want to make sure e-invoicing works for SMEs, because cash flow can make all the difference between staying afloat or going under."
The consultion, 'promoting electronic invoicing across UK businesses and the public sector', runs here until 7 May 2025.
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