UK e-invoicing in 2025: What businesses should know to stay ahead

A formal mandate has now been announced: e-invoicing will be mandatory for VAT invoices from April 2029, covering both B2B and B2G transactions.

A consultation launched by the UK government was concluded mid-2025, and its findings are helping to shape how suggested changes are implemented. Businesses now have a transition period until 2029 to adopt compliant systems.

While the specifics are still unfolding, staying informed is key for organizations looking to stay ahead. Similar e-invoicing mandates, such as the one implemented in Italy and those underway in Poland, France and Belgium, demonstrate the potential of electronic invoicing to close tax gaps, combat fraud, and streamline the automation of accounts payable (AP) and accounts receivable (AR) processes. 

Here is how these plans matter to UK businesses now: 

1. The global context: The rise of e-invoicing and compliance  

Around the world, governments are increasingly adopting e-invoicing and compliance systems as a critical tool to achieve: 

• Tax efficiency: Real-time or near real-time data reporting reporting enhances accuracy. 

• Fraud reduction: Secure, structured e-invoicing formats prevent falsification. 

• Economic modernization: Adopting modern technologies fosters a globally competitive business environment. 

As shown by the UK’s new approach to e-invoicing, it is more than a trend, it is fast becoming the new standard in financial operations. 

2. Potential benefits for UK businesses 

With the UK's formal embrace e-invoicing, businesses stand to gain several advantages: 

Reduced processing costs

Switching from PDF or paper invoices to machine-readable formats could lower costs from £6–£15 per invoice down to around £0.75. By eliminating manual data entry,  invoice errors are minimized. 

Faster payments and stronger supplier relationships 

Automated workflows lead to quicker approvals and on-time payments, which helps maintain positive relationships with suppliers, a crucial concern in a just-in-time economy. 

Enhanced security and compliance 

E-invoicing networks leverage encryption for secure data exchange, reducing the risk of invoice fraud. They also ensure compliance with emerging requirements worldwide. 

3. Continuous Transaction Controls (CTC): Global implications 

E-invoicing increasingly falls under the broader umbrella of Continuous Transaction Controls (CTC), where governments aim for real-time or near-real-time access to transactional data. The key CTC models include: real-time reporting, clearance, centralized exchange and Peppol 4-corner and Peppol 5-corner. 

Evaluate current workflows:

• Identify bottlenecks: Look for areas with high error rates or repetitive tasks. 

• Measure invoice costs: Calculate your cost-per-invoice to understand the potential ROI of automation. 

Engage key stakeholders:

• Finance and tax teams: Discuss how new UK regulations could affect compliance. 

• Procurement: Enhance purchase order accuracy to facilitate automated matching. 

• IT and Operations: Evaluate system readiness for integration and electronic data exchange. 

Test e-invoicing pilot projects:

• Select a supplier group: Implement e-invoicing on a smaller scale initially. 

• Refine and scale: Use feedback from the pilot to optimize processes before a broader rollout starts. 

Pro tip: Adopting AP automation and e-invoicing best practices now places you in a strategic position, ready to comply when the UK implements an e-invoicing framework.

The UK’s e-invoicing plans are no longer at an early stage, a change has been confirmed. With full implementation expected by April 2029, businesses should act now to ensure readiness. 

By exploring e-invoicing solutions today, your business can optimize accounts payable automation, streamline tax compliance and mitigate fraud risks.

With service providers like Thomson Reuters, you will be well-equipped to handle any changes in UK e-invoicing regulations and stay ahead of the curve in an increasingly digital marketplace. 

Thomson Reuters offers an extensive e-invoicing network operational in over 80 countries:

• Direct engagement with HMRC: We are members of the strategic software forum arranged by HMRC, giving us direct insight into regulatory developments and technical requirements. 

• ACtive role in UK public sector projects: Thomson Reuters (formerly Pagero) played a pivotal role in modernizing invoicing for the NHS, helping to transform one of the UK’s largest public sector projects to automate the handling of hundreds of thousands of invoices. 

• Prepared for future EU and global models: Fully aligned with ViDA (VAT in the Digital Age) and ready for the five-corner model, ensuring your business is future-proofed for cross-border compliance. 

• PEPPOL expertise: As a long-standing participant in the PEPPOL network, we guarantee interoperability and adherence to international e-invoicing standards. We have been active within Peppol governance communities since the network's inception and an outspoken proponent of its adoption worldwide. 

• Continuous engagement in UK digital transformation: Beyond HMRC forums, Pagero actively collaborates with industry bodies and participates in working groups shaping the UK’s e-invoicing landscape. 

• Regular and trustworthy compliance updates: We offer an extensive e-invoicing network operational in over 80 countries with constant monitoring of international mandates 

• Security & validation: Data encryption, real-time error checks and automatic PO validation 

• Scalability: One connection supports global e-invoicing, reducing complexity 

You can book a demo with our team here to discuss how our solution meets your needs.