UK businesses prepare for mandatory e-invoicing and Fair Payment Code

The UK government has announced that mandatory e-invoicing for all VAT invoices will begin in 2029. In preparation for this regulatory shift, accounting platforms are being assessed for their ability to exchange usable invoice data and manage transaction exceptions.

Xero has emerged as a primary option for small-business pilots due to its documented receiving processes, where incoming invoices arrive as populated draft bills for review. Sage is also noted as a viable option for businesses already utilizing its finance operations. Businesses are advised to verify software editions, workflows, and costs to ensure future compliance.

In a related development regarding payment standards, Xero has launched a ‘Supplier Days to Pay Detail’ report in the UK. This tool allows businesses to track payment speeds and provides the necessary evidence for applications to the Government’s Fair Payment Code. The code awards gold, silver, and bronze status to businesses that demonstrate prompt and fair payment to their suppliers.