When the decision to require e-invoicing was announced at the autumn Budget, chancellor Rachel Reeves said it was designed to ‘modernise the tax system’, confirming from April 2029 businesses will be required to issue all VAT invoices as e-invoices.

This mandatory change was announced without much fanfare from the Treasury or HMRC, although at the time many SMEs warned it would affect them. Another concern is that the system will be rolled out universally without a staggered start for smaller businesses.

A year ago before the decision was confirmed, HMRC commissioned IFF Research to find out how widely e-invoicing was used by SMEs in order to shape their thinking.