HMRC published a press release today (17 February 2025) to launch their consultation into e-invoicing, or electronic invoicing to give it its full name.

So what actually is e-invoicing?

E-invoicing is the digital exchange of invoice information directly between buyers and suppliers.

Unlike PDFs or scanned paper invoices, e-invoices are structured data files that integrate with accounting software, reducing manual entry and errors.

What are the benefits of e-invoicing? 💡

✅ Faster payments – In Australia, government agencies pay e-invoices in just 5 days, compared to 20 days for traditional invoices!
✅ Less admin – A UK NHS trust cut invoice processing times from 10 days to 24 hours, leading to quicker payments and fewer supplier queries.
✅ Fewer tax errors – Manual data entry mistakes contribute to 22% of the UK’s VAT tax gap. E-invoicing could help businesses get their VAT right the first time.

The government believes these changes will not only make tax compliance easier but also boost productivity across the economy. 📈

What’s in the consultation about e-invoicing?

The consultation, running until 7 May 2025, is gathering feedback on:
🔹 Different e-invoicing models – What would work best for UK businesses?
🔹 Mandated vs voluntary adoption – Should businesses be required to use e-invoicing?
🔹 Real-time reporting – Could e-invoicing be linked to live tax reporting to further streamline compliance?

HMRC and the Department for Business and Trade want input from small business owners, accountants, freelancers, charities, and industry bodies—essentially anyone who deals with invoices! 📜

👉 Have your say: Take part in the consultation on e-invoicing

While no immediate changes are planned, the feedback collected will shape the future of invoicing in the UK.

The government is also holding roundtable discussions and business events to hear directly from those affected.

If you’d like to participate, email einvoicingengagement@hmrc.gov.uk to register your interest.

How can you prepare for e-invoicing?

Even if e-invoicing isn’t yet mandatory, it’s worth exploring digital invoicing tools to streamline your business processes.

Almost every cloud accounting provider, like Xero, Quickbooks, FreeAgent and Sage, already support e-invoicing, making it easier to get ahead of any future changes.

What do you think—should e-invoicing be the future of UK business? Let us know in the comments! 💬

Or, if you have any questions on this subject, or any other aspect of cloud accounting or Making Tax Digital please do not hesitate to get in touch and the IN Team will be happy to help you.

You can read the full HMRC press release here:

Government sets out plans for ‘e-invoicing’ overhaul to cut paperwork – GOV.UK

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