There are certain elements that should be included in all official business cor­res­pond­ence. What defines a business letter and what guidelines should you observe when writing them? Find out here.

What is a business letter?

A business letter is any formal written com­mu­nic­a­tion between two business entities or pro­fes­sion­als, addressed to a specific recipient or group of re­cip­i­ents. Business letters are used to establish, maintain, or manage business re­la­tion­ships and typically follow standard UK format­ting and content guidelines.

What purpose do business letters serve?

In the UK, business letters serve as a formal and pro­fes­sion­al means of com­mu­nic­a­tion between or­gan­isa­tions, clients, and stake­hold­ers. Their key purposes include:

  • Proposals and offers
  • Order con­firm­a­tions and enquiries
  • Ac­know­ledge­ments of receipt
  • Invoices and payment receipts
  • Pricing lists
  • Order forms
  • Per­son­al­ised marketing letters (addressed to a named recipient)

The format of the letter—whether printed or digital (fax, email, etc.)—does not change its clas­si­fic­a­tion as a business letter. However, certain legal and in­form­a­tion­al re­quire­ments may apply depending on the business structure and context.

Note

If a business letter serves as initial written contact between business partners, it should include all relevant company in­form­a­tion to establish trans­par­ency. For instance, a company re­gis­tra­tion number allows re­cip­i­ents to verify the sender’s le­git­im­acy through Companies House or industry re­gis­tries.

The following types of written com­mu­nic­a­tion are not clas­si­fied as business letters:

  • Internal company cor­res­pond­ence (e.g., emails or memos between de­part­ments, branches, or sub­si­di­ar­ies)
  • Mass marketing com­mu­nic­a­tions (e.g., direct mail, generic ad­vert­ising materials sent to large groups)
  • Pre-filled business forms used in ongoing trans­ac­tions (e.g., delivery notes, shipping notices, or col­lec­tion no­ti­fic­a­tions)

Business letters fa­cil­it­ate com­mu­nic­a­tion in both business-to-business (B2B) and business-to-consumer (B2C) in­ter­ac­tions.

Business letters should be clearly dis­tin­guished from personal letters, which are intended for private, non-com­mer­cial com­mu­nic­a­tion.

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Required in­form­a­tion for business letters

Business letters are used to establish contact and maintain pro­fes­sion­al re­la­tion­ships and there are legal re­quire­ments in the UK regarding the in­form­a­tion that must be included, depending on the business structure. To ensure clarity and pro­fes­sion­al­ism, standard company details should be provided, including:

  • Company name (as re­gistered with Companies House)
  • Business address
  • Phone number & email address
  • Website (if ap­plic­able)
  • Date of the letter

Ad­di­tion­al details may be required based on business structure or industry reg­u­la­tions.

Sole traders

Business letters from sole traders should include:

  • Business name (if trading under a different name, the owner’s full legal name must also appear)
  • Business address
  • Contact details (phone number, email)

If operating under a trading name (DBA – ‘Doing Business As’), the owner’s personal name must also be included on all official business cor­res­pond­ence.

Part­ner­ships (General & Limited Part­ner­ships)

Business letters from general part­ner­ships (GP) or limited part­ner­ships (LP, LLP) should include:

  • Re­gistered business name
  • Part­ner­ship des­ig­na­tion (e.g., LLP, LP)
  • Principal place of business
  • The names of all partners (or an in­dic­a­tion of where a list of partners can be found)

Limited Companies (Ltd)

For private limited companies (Ltd) and public limited companies (PLC), business letters must include:

  • Company name (as re­gistered with Companies House)
  • Legal entity des­ig­na­tion (e.g., Ltd, PLC)
  • Re­gistered office address
  • Company re­gis­tra­tion number (as issued by Companies House)
  • VAT number (if ap­plic­able)

It’s important to know that if a company is in li­quid­a­tion, this must be stated in business cor­res­pond­ence.

Fact

The Companies Act 2006 mandates that all UK busi­nesses include their re­gistered company details in official cor­res­pond­ence, including business letters, invoices, and websites.

How should a business letter look? Page structure and design

To ensure pro­fes­sion­al and effective com­mu­nic­a­tion, business letters in the UK should follow a stand­ard­ised format. While there is some flex­ib­il­ity, using a pro­fes­sion­al structure enhances cred­ib­il­ity and read­ab­il­ity since poorly formatted letters may appear un­pro­fes­sion­al and cause un­cer­tainty.

Page format

Business letters should be formatted on A4 paper (210 × 297 mm) in portrait ori­ent­a­tion. The re­com­men­ded page margins are:

  • Top margin: 2.5 cm
  • Bottom margin: 2.5 cm
  • Left margin: 2.5 cm
  • Right margin: 2 cm

Font and ty­po­graphy

There is no legally required font for business letters, but pro­fes­sion­al, easy-to-read fonts are re­com­men­ded. Common choices include:

  • Arial
  • Times New Roman
  • Calibri
  • Helvetica

The re­com­men­ded font size is 11 or 12 points for read­ab­il­ity. If using a custom corporate font, adjust the size to maintain legib­il­ity.

Let­ter­head design

A business let­ter­head typically includes:

  • Company logo (optional but re­com­men­ded)
  • Company name
  • Business address
  • Phone number, email, and website (if ap­plic­able)
  • Company re­gis­tra­tion number (if ap­plic­able)
  • VAT number (if ap­plic­able)

Logos and design elements should be placed at the top of the page, ensuring they do not interfere with read­ab­il­ity or printing.

Tip

Avoid placing design elements too close to the page edges, as they may fall outside the printable area.

Recipient address block

The recipient’s address should be formatted according to Royal Mail standards and placed two lines below the let­ter­head (or below the sender’s address if no let­ter­head is used).

Example:

John Smith Marketing Director ABC Cor­por­a­tion 123 Business Avenue London EC1A 1BB

Date placement

In UK business letters, the date is right-aligned and written in the following format:

  • 20 March 2025 (Day Month Year, no commas)

The date should be one line below the sender’s address or two lines below the let­ter­head.

Subject line (optional)

A subject line is placed two lines below the recipient’s address and is usually bolded:

Subject: Proposal for Part­ner­ship Agreement

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Sa­luta­tion (greeting)

The greeting is placed two lines below the subject line (or recipient’s address if no subject is used). Formal business cor­res­pond­ence typically uses:

  • Dear [Recipient’s name],
  • Dear Mr./Ms. [Last name],
  • Dear Sir/Madam, (only if the recipient’s name is unknown)

For ongoing business re­la­tion­ships, a less formal approach may be used:

  • Hello [Recipient’s name],
  • Dear [First name],

The UK standard is to use a comma after the sa­luta­tion.

Letter body format­ting

The body text should be:

  • Left-aligned
  • Single-spaced
  • Divided into short, clear para­graphs
  • Separated by blank lines

If a letter exceeds one page, the footer should contain page numbers (e.g., ‘Page 2 of 3’).

Tip

Use clear, pro­fes­sion­al language and avoid excessive format­ting such as un­der­lin­ing or dec­or­at­ive fonts.

Closing and signature

The closing phrase is placed two lines below the body text and is followed by the sender’s signature.

UK Closing Con­ven­tions:

  • Yours sincerely, → When ad­dress­ing a specific named recipient
  • Yours faith­fully, → When using ‘Dear Sir/Madam’

After the closing, leave three blank lines for the signature and then type the sender’s name and title:

Yours sincerely, [Signature] John Smith Marketing Director ABC Cor­por­a­tion

At­tach­ments & en­clos­ures

If ad­di­tion­al documents are included, an enclosure or at­tach­ment note should be placed one or two lines below the signature block:

En­clos­ures: Business Proposal, Contract Draft

The footer (if used) should contain:

  • Company’s legal business name
  • Re­gistered office address
  • Company re­gis­tra­tion number (if ap­plic­able)
  • VAT number (if ap­plic­able)
  • Phone number and website

Example:

ABC Cor­por­a­tion Ltd | Re­gistered in England and Wales | Company No. 12345678 | VAT No. GB123456789 | Re­gistered Office: 123 Business Avenue, London EC1A 1BB | Tel: +44 (0)20 7946 0123 | email@abc.co.uk | www.abc.co.uk

Business letter – down­load­able template

Here you can find our business letter template as a Word file for download:

Business_letter_template_UK.docx

The dos and don’ts of writing a business letter

Dos

Be clear and concise

  • Business letters, whether printed or emailed, should be direct and to the point.
  • Most re­cip­i­ents receive multiple business com­mu­nic­a­tions daily, so ensure your message is brief, clear, and pur­pose­ful.
  • Use a concise, relevant subject line for clarity.
  • Business letters should not exceed one A4 page (210 × 297 mm) unless ab­so­lutely necessary.
  • For complex in­form­a­tion (e.g., tables, figures, or invoice details), include at­tach­ments instead of over­load­ing the main letter.

Use a personal greeting

  • Address the recipient per­son­ally whenever possible.
  • If necessary, research the correct name and spelling of the contact person.
  • If the recipient’s name is unknown, use a neutral but pro­fes­sion­al greeting, such as:
    • Dear Hiring Manager, (for job ap­plic­a­tions)
    • Dear Customer Service Team, (for customer enquiries)
    • Dear Sir/Madam, (if no specific contact is available)

Use a post­script (PS) stra­tegic­ally

  • A post­script (PS) was tra­di­tion­ally used in hand­writ­ten letters but still serves a purpose in modern business writing.
  • In a business letter, use a PS to highlight important in­form­a­tion or provide an extra note, such as:
    • A special offer or promotion
    • A website link for more details
    • A friendly reminder or follow-up request
  • The PS should be brief and relevant to avoid dis­tract­ing from the main message.

Don’ts

Phrases and outdated for­mu­la­tions

Write business letters in a modern, recipient-focused style. Avoid clichéd phrases, formulaic blocks of text, or outdated ex­pres­sions. Use clear, direct language without un­ne­ces­sary em­bel­lish­ment.

Remember that your business cor­res­pond­ence reflects your company’s image. If you bore clients or partners with stale or bur­eau­crat­ic language, you miss an op­por­tun­ity to make a positive im­pres­sion. A well-written letter, tailored to the recipient, signals genuine interest and will be re­membered.

Spelling and grammar mistakes

Poor spelling, punc­tu­ation or grammar appears un­pro­fes­sion­al. This applies not only to the content but also to layout and structure. Always proofread your business letters carefully, or seek pro­fes­sion­al support if needed.

Negative language

Avoid using negative phrasing or un­ne­ces­sary negations. Even bad news can usually be conveyed more pos­it­ively. Focus on offering options rather than blocking the con­ver­sa­tion. ‘Let me look into that and get back to you shortly.’ sounds a lot more positive than ‘Un­for­tu­nately, I can’t answer that.’ It’s important to replace wording that sounds dis­missive or problem-focused with a friendly, con­struct­ive al­tern­at­ive—without sugar-coating the message.

Passive voice

Passive con­struc­tions often hide who is re­spons­ible and can come across as vague or unhelpful. Active voice makes your message clearer and more engaging.

Compare:

‘Your request will be processed as soon as possible.’

vs.

‘My colleague, Mr Smith, will process your request as soon as possible.’

The second version feels more personal and re­as­sur­ing because the reader knows who is taking re­spons­ib­il­ity.

Overly complex sentences

Long, con­vo­luted sentences hinder un­der­stand­ing and weaken com­mu­nic­a­tion. Replace tangled sentence struc­tures and excessive sub­or­din­ate clauses with clear, straight­for­ward state­ments.

Please note the legal dis­claim­er for this article.

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