HM Revenue & Customs (HMRC) has recently published a research paper examining how small and medium-sized enterprises (SMEs) perceive electronic invoicing, commonly referred to as e-invoicing.

In the Autumn Budget 2025, plans were announced to make e-invoicing mandatory for VAT invoices from 2029. The research paper aims to support the development of an e-invoicing policy that meets the competitive needs of SME businesses.

An e-invoice is a document that is issued and received in a structured digital format, allowing it to be processed automatically by electronic systems. E-invoicing solutions can integrate with accounting software, helping to streamline a business’s bookkeeping processes.

The government considers that e-invoicing will help businesses submit more accurate tax returns.

The research suggests that 59% of businesses are familiar with e-invoicing. However, only 29% appear to be actively using it, and just 10% of SMEs report both sending and receiving e-invoices.

The most common method used by SMEs for both sending and receiving invoices remains PDF or email. A significant number of businesses also continue to rely on paper and traditional postal methods for invoicing.

Although e-invoicing will not become mandatory until 2029, there is still ample time to prepare. If you would like support in assessing whether your accounting system is ready for e-invoicing, please do get in touch. We would be delighted to assist you.

See:  https://www.gov.uk/government/publications/electronic-invoicing-sme-usage-and-attitudes/electronic-invoicing-quantitative-research-into-small-and-medium-sized-enterprises-usage-and-attitudes