The Institute of Chartered Accountants in England and Wales (ICAEW) has advocated for the voluntary adoption of electronic invoicing (e-invoicing) in the UK, with mandatory implementation postponed until at least 1 January 2030.
The recommendation was made in response to the government’s consultation on increasing e-invoicing adoption among UK businesses and the public sector.
The consultation explored whether e-invoicing should be mandatory or voluntary and examined the potential for real-time or near real-time data reporting to HMRC.
ICAEW said it “strongly” supports e-invoicing adoption, citing international evidence of improved productivity, reduced costs, faster payment times, better cash flow, and increased tax compliance and revenues.
Many nations, including EU member states, have already implemented e-invoicing mandates or frameworks, according to the professional membership organisation
ICAEW said it “believes that the UK’s current lack of a co-ordinated e-invoicing policy places its businesses at a growing disadvantage and could deter capital investment”.
The government’s consultation is seen as a timely opportunity to address this gap and lay the groundwork for future digital transformation.
The ICAEW suggests a decentralised model using established standards, ensuring clarity, consistency, and flexibility.
It recommends prioritising voluntary adoption, considering mandatory implementation only after careful evaluation and not before 1 January 2030, allowing businesses time to adjust and align with the EU’s VAT in the digital age reforms.
The ICAEW also advised a cautious approach to real-time reporting and additional services, with further consultation on detailed implementation issues.
Earlier in May 2025, ICAEW expressed concerns over proposed inheritance tax (IHT) reforms, which aim to cap reliefs at £1m ($1.33m).
The organisation warns these changes could disproportionately affect elderly business owners and farmers, especially those in poor health, by imposing unforeseen tax liabilities.
ICAEW’s response to the government consultation highlighted that the proposed IHT reforms could create significant financial challenges for business owners planning to pass on their enterprises.
“ICAEW recommends prioritising e-invoicing adoption” was originally created and published by The Accountant, a GlobalData owned brand.
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