The UK’s move towards mandatory electronic invoicing represents one of the most significant changes to business payment infrastructure in decades.
From 2029, all VAT invoices will need to be issued electronically, as part of a government push to address late payments, reduce administrative friction and improve productivity across the economy. While the policy is still several years away, its implications are immediate, particularly for businesses that continue to rely heavily on paper-based or manual invoicing processes.
Tietoevry recently explored why UK businesses should prepare for the e-invoicing mandate now.
E-invoicing is widely recognised as a practical way to cut costs and speed up payments. Government analysis suggests that digital invoicing can reduce late payments by 20%, generate annual savings of around £11,300 for small businesses and deliver a 3% boost in productivity. Yet despite these clear benefits, adoption in the UK remains uneven. More than half of invoices are still issued in non-digital formats, exposing businesses to avoidable delays, errors and cash flow pressures.
As the government prepares to publish a formal roadmap in 2026, early adopters are expected to gain an advantage by spreading implementation costs over time and avoiding the disruption that can come with last-minute compliance efforts, Tietoevry said.
Tieto is helping organisations modernise their invoicing and communications infrastructure through its Multichannel platform, which is designed to centralise communications, automate document handling and integrate payment options within a single system. By replacing fragmented processes with a unified digital approach, businesses can simplify operations while accelerating payment times and reducing costs.
Tieto Indtech Sales Manager Steve Tait said, “Companies can no longer afford inefficiency. Multichannel helps businesses speed up payments, reduce operational costs and strengthen customer loyalty, all while futureproofing their communication strategy.”
The platform is intended to support UK firms at different stages of digital maturity. Integrated payment options encourage faster customer responses, while automation reduces reliance on manual processing and follow-ups. At the same time, customers are able to choose how they receive and interact with invoices, helping businesses deliver a more flexible and responsive experience.
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