Credit Note Generator
Correct an invoice for returns, overcharges or cancellations with a proper UK credit note. Add your logo and export a polished PDF — free, no signup.
How to use the credit note generator
- Add your business details. Enter your name or company name, company and VAT numbers if you have them, address, and optionally upload your logo.
- Add the client’s details. Enter the name and address of the client you're crediting.
- Set the credit note number and dates. Give it a unique reference, then set the credit note date and the date the credit applies from.
- List what’s being credited. Add one or more line items describing the goods or services, with quantity and unit price — the generator totals these automatically.
- Apply VAT and record the reason. Set the VAT rate if the original invoice charged VAT, choose a reason from the dropdown, and reference the original invoice number before downloading the PDF.
What to include in a credit note
- Credit note number. A unique reference in its own numbering series, separate from your invoice numbers.
- Original invoice reference. Links the correction back to the invoice it adjusts, so both sides can reconcile it.
- Reason for the credit. A short note — returned goods, an overcharge, a cancelled service, or a negotiated discount — for your own records and the client’s.
- Line items. Description, quantity and unit price for each item being credited, matched to the original invoice where possible.
- VAT breakdown. The net amount, VAT amount and rate, and the total credit — if the original invoice charged VAT.
- Your business and client details. Names, addresses and VAT number so the credit note stands on its own as a record.
Link every credit note to an invoice
Reference the original document number so the correction is traceable. If you need to reissue the corrected amount, create a new Invoice, or confirm any refund with a Receipt.
Frequently asked questions
When should I issue a credit note?
Issue a credit note when you need to reduce or cancel an amount already invoiced — for example returned goods, an overcharge, a cancelled service, or a negotiated discount after the original invoice was sent.
Does a credit note affect my VAT return?
Yes. If the original invoice charged VAT, the credit note should show the VAT you are crediting back, and you adjust your VAT account accordingly for the period the credit note is issued.
Should I reference the original invoice?
Yes — always link a credit note to the original invoice number so both you and your client can reconcile the correction against the right transaction.
What’s the difference between a credit note and a refund?
A credit note reduces what a client owes or can be offset against a future invoice — it does not necessarily mean cash changes hands. A refund is the actual repayment. You might issue a credit note and separately process a refund, or use it to reduce the balance on the client’s next invoice.
Should credit notes use their own numbering sequence?
Yes — keep a separate, sequential series for credit notes (for example CN-001, CN-002) so each one is uniquely identifiable and easy to trace against the invoice it corrects.
How long should I keep copies of credit notes?
Keep credit notes with the rest of your business records for the same retention period as your invoices — HMRC expects VAT and accounting records to be kept for at least 6 years.