# How to write a receipt of payment (with template)

Using the right receipt template makes filling out a receipt incredibly simple. But what does a receipt template actually include? And why are receipts necessary at all? We’ll guide you through the process of issuing a receipt and highlight the essential details you must include.

## What is a receipt of payment?

A receipt of payment is a document that acknowledges payment for a product or service. It typically includes details such as the **date and time of purchase, items purchased, total amount paid, payment method, and business details** (such as name and location). If the purchase was made in a physical store rather than online, the store’s address is usually included.

In the United Kingdom, there are **no legal requirements** for businesses to issue receipts for standard transactions, except in certain cases such as [VAT](https://www.ionos.co.uk/digitalguide/startup/grow-your-business/value-added-tax-vat/) invoices for VAT-registered businesses. However, receipts must be accurate and should include key details for tax and record-keeping purposes.

For card payments, businesses must comply with the **Payment Card Industry Data Security Standard (PCI DSS)**, which regulates how card details are stored and displayed. Only the last few digits of a credit/debit card may be shown on a receipt, and expiration dates must not be printed.

## What is the purpose of receipts of payment?

Receipts serve several important purposes for both businesses and consumers. They act as **proof of payment** and provide a record of transactions for financial, legal, and tax-related reasons.

1. **Proof of purchase** – Confirms transactions for returns, warranties, and disputes.
2. **Legal & tax documentation** – Important for business records, VAT reporting (if applicable), and tax deductions for self-employed individuals and businesses.
3. **Expense tracking** – Helps individuals and businesses manage budgets and claim business expenses.
4. **Fraud prevention** – Verifies transactions and helps consumers dispute unauthorised charges.
5. **Regulatory compliance** – Businesses must comply with UK tax laws, including issuing VAT receipts if VAT-registered.

## What is the difference between a receipt of payment and an invoice?

An **[invoice](https://www.ionos.co.uk/digitalguide/startup/grow-your-business/creating-an-invoice-tips-for-businesses/)** is a **request for payment** issued by a seller to a buyer. It typically includes:

- Products or services provided
- Prices, VAT (if applicable), discounts, and total amount due
- Payment terms (e.g., due in 30 days or upon receipt)
- Business contact details (e.g., address, phone, website)

Invoices are commonly used in **business-to-business (B2B)** transactions or for services rendered before payment is received.

A **receipt of payment**, on the other hand, confirms that payment has been made and that a sale is complete. It serves as:

- **Proof of purchase** for returns, exchanges, or warranties
- A record of **what was bought, how much was paid, and the payment method**
- A document that includes **business details** but usually **limited customer information**

Receipts are most common in **business-to-consumer (B2C)** transactions and for immediate payments.

Fact UK businesses are not legally required to issue receipts unless requested by the customer or required for VAT records.

## How to fill out a receipt of payment correctly

A **receipt of payment** should typically include the following:

**Title:** ‘Receipt’ (optional but recommended)

**Transaction date and time**

**Receipt number** (for tracking, but not legally required)

**Business name and address**

**Items purchased or services provided** (with description and quantity)

**Price per item and total amount paid**

**VAT amount and VAT rate** (if applicable, for VAT-registered businesses)

**Total including VAT (if applicable)**

**Payment method** (cash, card, etc.)

**Merchant contact information** (phone, email, or website)

### Extra points to consider for compliance

- **VAT considerations:** If a business is VAT-registered, the receipt should include a VAT breakdown. If the transaction is zero-rated or VAT-exempt, this should be stated.
- **Legal requirements:** A receipt is not legally required unless a VAT invoice is needed, but businesses commonly issue receipts as proof of purchase.
- **Card payment security:** Businesses must comply with PCI DSS (Payment Card Industry Data Security Standard) rules—receipts should only show the last 4 digits of a card number and never include the expiration date.
- **Keep records**: Businesses must retain receipts for six years as part of their financial records.

You can issue a receipt of payment either electronically or on paper. It can be created by hand using a receipt book or generated using a digital receipt template on your computer. However, HMRC requires that records be kept digitally for VAT-registered businesses under **Making Tax Digital (MTD)**.

Using [accounting software](https://www.ionos.co.uk/digitalguide/startup/grow-your-business/accounting-software/) can streamline this process by integrating receipt creation with your overall bookkeeping. This helps to **automate data entry**, saving time and reducing errors. If your business issues a high volume of receipts, switching to a digital solution may be more efficient.

If you don’t have accounting software or prefer physical copies, you can use a receipt book, which usually includes duplicate pages (one for the customer and one for your records). Alternatively, **pre-made receipt templates** can be downloaded and printed for manual use.

## Receipt template to download

This is an example of how a receipt of payment looks:

[![Image: Example of a receipt template in Word](https://www.ionos.co.uk/digitalguide/fileadmin/_processed_/c/7/csm_receipt-of-payment-template-uk_c22c95b403.webp "Example of a receipt template in Word")](https://www.ionos.co.uk/digitalguide/fileadmin/StartupGuide/Screenshots/receipt-of-payment-template-uk.png) The sample receipt template includes all essential information. Receipt_of_payment_template_UK.docxPlease note the [legal disclaimer](https://www.ionos.co.uk/digitalguide/startup/disclaimer/) for this article.


This is a markdown version of: [https://www.ionos.co.uk/digitalguide/startup/grow-your-business/sales-receipt-templates-the-easy-way-to-write-sales-receipts/](https://www.ionos.co.uk/digitalguide/startup/grow-your-business/sales-receipt-templates-the-easy-way-to-write-sales-receipts/) for AI/LLM consumption.