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e-invoicing confusion underlines need for clear guidance and communication

1 April, 2026

New research published by HMRC highlights a significant gap in awareness and understanding of e-invoicing among UK small and medium-sized enterprises (SMEs), with the Association of Taxation Technicians (ATT) calling for clear guidance and a detailed roadmap ahead of the proposed April 2029 start date.

The Chancellor confirmed at last year’s Budget that e-invoicing will be required from April 2029 for business to business (B2B) and business to government (B2G) transactions where VAT is due. But the findings of HMRC’s research, published last week,1 suggest that confusion around what constitutes e-invoicing remains widespread.

In HMRC’s research, a notable number of respondents initially reported that they did not use e-invoicing, yet went on to describe practices that meet the definition. These responses were subsequently reclassified, indicating that many businesses may already be using e-invoicing without realising it. Responses also showed that SMEs frequently combine e-invoicing with simpler digital processes, such as sending invoices via PDF e-mail.

The ATT says the research shows more work must be done to educate SMEs on e-invoicing and ensure that they understand their responsibilities before the changes are brought in. This should include more effective communication and a clear roadmap, which the Government says will be published at this year’s Budget.2

Jon Stride, chair of the ATT’s Technical Steering Group, said:

“The research raises questions about the effectiveness of HMRC’s communications around e-invoicing. Despite a campaign conducted during the research period, including an email bulletin distributed to more than 100,000 recipients, 91% of SMEs surveyed did not recall seeing any messaging about e-invoicing.

“The findings underline that there is still considerable work to be done to ensure SMEs are adequately prepared for the transition to e-invoicing. With a mandate expected to come into force in April 2029, stakeholders are increasingly calling for a clear and comprehensive roadmap, anticipated at Budget 2026, alongside more targeted and effective communications.

“Without greater clarity and engagement, there is a risk that many businesses will remain underprepared for the shift, potentially undermining the intended benefits of e-invoicing, including improved efficiency, reduced errors, and enhanced tax compliance.”

Notes:

  1. HMRC quantitative and qualitative research into small and medium-sized enterprises’ usage and attitudes
  2. ATT: E-invoicing 2029 start date gives businesses “much needed lead-in time” to adapt