techUK and industry leaders call for the government to provide a clear signal on the introduction of e-invoicing

In an Open Letter shared publicly today, techUK and industry leaders call for the government to seize the moment and unlock the benefits that e-invoicing can bring to the UK economy

In our Open Letter, sent to the Secretary of State for the Department for Business and Trade Peter Kyle MP yesterday, signatories outline the need for the government to provide a clear signal on the phased introduction of e-invoicing, building on the foundations of Making Tax Digital (MTD) and starting with Business-to-Business transactions for VAT-registered businesses.  

You can access the full letter here. 

We believe in the UK and its thriving digital economy which has many of the building blocks are in place to support businesses to digitise their processes. As part of this, e-invoicing represents a vital tool to support the UK Government’s ambitions to boost productivity, improve access to working capital, and also support in tackling late and other poor payment practices, which your government estimates currently cost the UK economy £11bn each year. 

The UK is a relatively late adopter of e-invoicing and further delaying the shift could risk undermining our future competitiveness. Certainty and a map for the road ahead will unlock investment from the tech companies that will build the relevant functionality for compliance in the UK. 

While we recognise that SMEs often face barriers to technology adoption, signatories of this letter are committed to building, and supporting, the solutions that make e-invoicing work for the UK economy. We further reiterate the need for standards, clear guidance, the right support infrastructure and sources of information to be in place to ensure wide success of e-invoicing in the UK.  

Signatories of the letter are committed to building, and supporting, the solutions that make e-invoicing work for the UK economy.  

Aaron Asadi, CEO of small business support platform and 150,000-strong membership community Enterprise Nation, said: “We shouldn’t even be having this conversation. Late payment is crippling small businesses, taking food off tables and putting millions of livelihoods at risk. The mandating of e-invoicing is essential, eradicating the late payments that impact growth instantly. The UK already has a strong digital base to build on. Under Making Tax Digital, all VAT-registered businesses already keep digital records and file returns using compatible software, so the core plumbing is in place; what remains is to digitise the connections between firms by standardising invoices in structured, machine-readable form. That's why we support techUK's open letter today."

Philip Salter, Founder, The Entrepreneurs Network said: “Entrepreneurs are at their best when they’re actively building their companies. For too many, administrative burdens associated with handling invoices gets in the way of expansion. From previous research we have carried out, we know that most entrepreneurs intuitively understand that the government has a unique role to play in setting the rules of the game – and, provided that the burdens do not become onerous, accelerating the shift towards e-invoicing could be a win-win for the economy and taxpayers alike. As we make clear in our joint letter, the goal now should be to signal a clear roadmap and ensure that Britain’s businesses have the certainty they require to make a smooth transition to a digital future.”

Ellen Leith, CEO, Purchase to Pay Network and co-founder of the UKeLab said: "We’re at a significant point for UK business. Companies that seize this initiative and view the transition to e-invoicing strategically rather than just as a compliance exercise will see the greatest returns. Our research shows that moving from manual or PDF invoices to structured e-invoicing can reduce processing costs from around £15 per invoice to less than £1, while dramatically improving accuracy, end-to-end visibility and payment times. I believe we’re set-up perfectly for positive change from digitisation and e-invoicing adoption across the UK economy."

techUK, on behalf of our members and signatories, stand ready to partner with this government to ensure that this transition works for the whole economy.  


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Antony Walker

Antony Walker

Deputy CEO, techUK

Alice Campbell

Alice Campbell

Head of Public Affairs, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Nimmi Patel

Nimmi Patel

Head of Skills, Talent and Diversity, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Regulation, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Mia Haffety

Mia Haffety

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Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Daniella Bennett Remington

Daniella Bennett Remington

Policy Manager - Digital Regulation, techUK

Oliver Alderson

Oliver Alderson

Junior Policy Manager, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK

 

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