Written by Katie Ziegel | Updated 01/12/2023
Whenever you issue an invoice, you need to make sure that it contains key details about you, your customer and the products/services sold. But do you need to put bank details on your invoices?
In this article, we’ll cover:
Mandatory information to include on your invoices
Why it would be beneficial to include bank details on invoices
Which bank details should be on your invoices
How to add bank details to your invoices
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What needs to be on an invoice?
For an invoice to be considered a legitimate, official document in the UK, it needs to contain some important pieces of information such as:
Your registered business name (and a trading name if you use one)
Your registered address
A unique, sequential invoice number
The date of issue
Descriptions, prices, and quantities of the goods or services provided
The total amount due
If you run an incorporated business, your invoices also need to contain your Company Registration Number, and if you’re registered for VAT, you’ll need to provide your VAT number, the tax rate applied to each product and the total amount of VAT due.
Unlike prices, issue dates, etc., bank details are not compulsory elements of an invoice. But while there are strict guidelines about the minimum amount of information that needs to be on your invoices, there are no regulations limiting which extra details you can add.
This means that while you’re not required to include your bank details, nothing is stopping you from doing so.
Why would I put my bank details on my invoices?
It’s up to you to decide whether or not you want to put bank details on your invoices, and it’s usually more appropriate to do so if payments are made directly to your bank account.
If you expect to be paid with a standing order or one-time bank transfer, you should clearly state this on your invoices. In this case, it’s highly recommended that you provide your bank details.
Providing your bank details not only makes it easier for your customers to set up payments but it also limits the need for back-and-forth messages confirming your information.
If you don’t accept payments via bank transfer, you can still put your bank details on your invoices, but it isn’t necessary to do so. Sending invoices with unnecessary details can look a bit cluttered, and it might lead to confused customers who aren’t sure how they should pay.
Which bank details should be on my invoices?
If you decide to include your bank details on your invoices, it’s important to include enough information for your customers to set up their payments.
At a minimum, you should include your sort code and account number, but it’s usually a good idea to include the bank name and account holder’s name as well.
If you sell to customers outside of the UK, you should also consider including your IBAN and SWIFT/BIC code so that international customers can pay from foreign bank accounts.
How to add bank details to your invoices
It’s easy to add your bank details to your invoices with our free invoicing software - SumUp Invoices.
Simply click 'Select payment methods' from the invoice builder, then choose either your free SumUp Business Account or your external bank account. If you choose “External bank account”, you can either enter the details manually or automatically sync your transactions by linking your external bank account to SumUp.
Your sort code, account number, IBAN, etc. will save automatically, and any information you enter will appear on all of your future invoices.
With SumUp, you can open a free Business Account in seconds for free and link it to SumUp Invoices to receive next-day payouts. You can easily transfer money from your SumUp Business Account to an external bank account if you wish.
SumUp Invoices makes sure your invoice is complete, compliant and professional before you send it to your customer. Link your SumUp Business Account to receive your money the next day.
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FAQs
Is it mandatory to include bank details on an invoice?
No, it is not mandatory to include bank details on your invoices, however, there are several benefits to doing so.
What are the benefits of including bank details on an invoice?
The main benefits of adding bank details to your invoices are:
It’s standard practice in the UK
It’s more convenient for your customers
It helps you get paid faster
Less back-and-forth communication
Secure payments
It’s easy for the customer to set up a standing order for recurring payments
Bank payments can usually be linked with invoicing and accounting software, saving you time
How do I add bank details to my invoices?
The easiest way to add bank information to your invoices is to use invoicing software, like SumUp Invoices. Once you add your bank, it will appear automatically on all invoices. If you use the free SumUp Business Account, your payments will automatically link and match with your invoices.
How does SumUp make money if the invoicing software and Business Account are free?
SumUp makes a small percentage of each payment you make with your SumUp Mastercard. The seller's payment processor pays a small percentage of each transaction to the card scheme. Essentially, when you pay for things, we get paid.
We also offer a subscription plan for the invoicing software for businesses that require additional automation, customisation features and external bank account integration.
Finally, we offer a range of different card readers and business solutions that earn us money through collecting transaction fees.
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