How to Invoice Someone as an Individual (Without a Company)

In Australia, if you invoice for business work without an ABN, the payer is required to withhold 47% of your payment. That's the sharpest version of a problem that catches first-time earners in every country: assuming that invoicing requires a registered company and either delaying the invoice or getting the details wrong.

It doesn't require a company. An invoice is a document requesting payment, and individuals can issue them under their own name. What varies by country is what you need to put on it and what you need to have registered before the money moves.

What "without a company" really means in each country

"I don't have a business" usually means "I haven't incorporated." But in most countries, the moment you earn money from work, you're treated as self-employed for tax purposes whether you registered anything or not.

• United States: If you work for yourself and aren't incorporated, you're a sole proprietor by default. No registration is required to start; the income goes on your personal tax return (Schedule C). You invoice under your own name.
• United Kingdom: You're a sole trader. You can do occasional work, but HMRC expects you to register for Self Assessment once your self-employed income passes the trading allowance (commonly cited as £1,000 of gross income per tax year — confirm the current figure with HMRC). Below that, you may not need to register at all.
• Canada: You're a sole proprietor. You report business income on the T2125 form attached to your personal return. No incorporation needed to invoice.
• Australia: The real exception. The ATO generally expects anyone carrying on an enterprise — running a genuine business, even part-time — to have an ABN (Australian Business Number). It's free and you can apply online. If you invoice without one for business activity, the payer may be required to withhold 47% from your payment. A genuine one-off hobby sale is different, but recurring paid work usually means you should get an ABN.

Rules vary by jurisdiction and change over time. Confirm thresholds and registration requirements with your tax authority (IRS, HMRC, CRA, ATO) or a qualified accountant before assuming you're under a limit.

What goes on the invoice

A valid invoice as an individual contains almost everything a company invoice does, just with your personal details where a business's would go. Include:

1. The word "Invoice" at the top, clearly.
2. Your full legal name (and a trading name like "Sam's Editing" only if you actually use one). Your name is your business identity here.
3. Your contact details — address, email, phone. A home address is fine; if you'd rather not share it, a PO box or just email and phone works for most clients.
4. The client's name and address.
5. A unique invoice number — start at 001 and never repeat one. See invoice numbering best practices for a system that won't break later.
6. Invoice date and due date (e.g. "Net 14" — payment within 14 days).
7. Line items: a description, quantity, rate, and amount for each thing you're charging.
8. Total due, in the correct currency.
9. Payment details — how you want to be paid.
10. A tax ID, only if you have one or need one (more below).

A simple line item looks like this:

Video editing — promotional reel 6.5 hours @ $45.00/hr — $292.50 Stock music licence (1 track) — $18.00Total due: $310.50 Payment terms: Net 14. Due by 13 July 2026.

You don't need fancy software. A clean template in Word, Google Docs, or Excel is perfectly professional, or grab one from our roundup of free invoice templates. The full anatomy is covered in how to write an invoice.

What tax number do you put — SSN, UTR, company number?

The short answer: you almost never put a personal tax number on the invoice itself, and you never need a company number you don't have.

• US: A client paying you $600 or more in a year will usually ask you to complete a Form W-9, which captures your name and either your Social Security Number or an EIN. They use that to file a 1099 — they do not expect it printed on your invoice. If you'd rather not hand out your SSN, you can get a free EIN from the IRS as a sole proprietor and use that instead. Don't put your SSN on the invoice body.
• UK: You don't put your UTR (Unique Taxpayer Reference) on invoices, and you don't need a company number because you're not a company. If you're VAT registered you must show your VAT number, but most occasional earners aren't. See do I need to register for VAT.
• Canada: No number needed on the invoice unless you're registered for GST/HST (generally required once revenue exceeds CAD $30,000 over four consecutive quarters — verify the current threshold). Then you show your GST/HST number.
• Australia: Show your ABN on the invoice. If you're registered for GST, the document becomes a tax invoice and must say "Tax Invoice", show the GST amount, and include your ABN.

The pattern across all four: a personal tax identifier is for filing your taxes or completing a payer's form, not for the invoice itself. The exception is a consumption-tax registration number (VAT, GST/HST) or an Australian ABN, which do belong on the document when they apply.

Should you charge sales tax, VAT, or GST?

Usually not, if you're a small occasional earner who hasn't crossed a registration threshold.

You can't charge VAT or GST/HST unless you're registered for it — adding it when you're not registered is a serious error. US sales tax depends on what you sell and your state; most freelance services aren't taxable, but goods and some digital products can be. US sales tax on invoices walks through it. If you're below the registration threshold, your invoice total is simply your fee with no tax line.

When in doubt, charge no tax and note "No VAT/GST charged" so the client isn't left wondering.

How to actually get paid

Without a registered business, you may not have a business bank account — and you don't strictly need one to start. But mixing personal and work money makes bookkeeping painful, so a separate free account or a dedicated sub-account is worth setting up early.

Practical options:

• Bank transfer (ACH / Faster Payments / EFT / PayID): Cheapest, no fees, fine for domestic clients. Put your account details (or sort code/account number, or BSB/account for Australia) on the invoice.
• PayPal / Wise / Stripe: Easier for clients, especially internationally, but they take a cut — typically a few percent. Factor that into your rate.
• For overseas clients, Wise and similar services beat traditional bank wires on fees and exchange rates. See how to invoice international clients and our comparison of payment methods for freelancers.

Make payment frictionless: state the method clearly, give exact terms, and consider asking for a deposit on larger jobs — see how to ask for a deposit on upfront invoices. To shorten the wait, these tactics genuinely move the needle.

The tax basics you can't skip

Being unregistered doesn't make the income tax-free. The universal principle across all four countries: self-employment income is taxable, and it's your job to report it.

• Keep records. Save a copy of every invoice and every receipt for expenses. A spreadsheet is enough at this scale.
• Set money aside. No one withholds tax from your invoices. A common rule of thumb is to park 25–30% of what you earn for tax — adjust to your actual bracket and country.
• Know your filing duty. US: Schedule C plus possible quarterly estimated payments. UK: Self Assessment if over the trading allowance. Canada: T2125 with your personal return. Australia: report on your individual return, plus BAS if GST-registered.
• Track expenses. Software, equipment, mileage, and supplies used for the work are typically deductible, which lowers the income you're taxed on.

This is general guidance, not personalised tax advice. Thresholds, forms, and rates change — check with your tax authority or an accountant for your situation.

A quick checklist before you hit send

• Document says "Invoice" and has a unique number
• Your full legal name and contact details
• Client's name and address
• Clear line items with quantities and rates
• Total and currency correct
• Due date and payment terms stated
• Payment method and account details included
• Tax number shown only if you're VAT/GST registered or in Australia (ABN)
• A copy saved for your records