Invoa vs Wave — built for the UK vs built for North America
Wave is a well-regarded free tool — in the US and Canada. For UK freelancers who need HMRC-compliant VAT invoices, Making Tax Digital support, and GBP-first workflows, it falls short in ways that matter legally.
Try Invoa FreeNo credit card required. Free plan available.
The key difference
Wave is a genuinely good product — for freelancers in the US and Canada. It was founded in Montréal and its product decisions reflect the North American market: USD-centric design, US/Canada payroll, and no built-in UK VAT invoice fields. For UK VAT-registered freelancers, this is not a minor inconvenience. HMRC has specific legal requirements for what a VAT invoice must show, and Wave's standard templates do not meet them without manual intervention. Invoa was built for the UK market from the ground up: UK VAT compliance, Making Tax Digital, and UK Open Banking are first-class features, not afterthoughts.
At a glance
A direct feature comparison for UK freelancers.
Price
From £7.99/mo (free starter plan)
Free (payments and payroll cost extra)
UK VAT invoice compliance
Built-in — VAT number, rate, and amount as required by HMRC
No dedicated UK VAT fields; must be added manually
Making Tax Digital (MTD)
Designed with MTD in mind
No MTD support
UK Open Banking
Yes — auto-reconcile invoices against your bank feed
No UK Open Banking integration
Currency focus
GBP-first; multi-currency on Business plan
USD-centric; GBP available but secondary
UK-based support
UK company and support hours
US/Canada support; no UK entity
Free plan
Yes — 1 invoice/month on Starter
Yes — unlimited invoices free
Full accounting suite
Invoicing and payment tracking
Full double-entry accounting included free
PDF invoices
Yes
Yes
Client management
Yes
Yes
Receipt scanning
No
Yes (Wave Receipts app)
UK VAT compliance — where Wave falls short
If you are VAT-registered in the UK, every invoice you issue must meet HMRC's requirements for a valid VAT invoice. Sending non-compliant invoices can create problems for you and your clients at audit — your client may be unable to reclaim the VAT, and HMRC may dispute the validity of the supply record. The following fields are legally required and must appear automatically, not as an afterthought.
Supplier's VAT registration number
Every VAT invoice must display your VAT number in full (format: GB followed by 9 digits). Wave's default template has no dedicated field for this.
VAT rate applied to each line
HMRC requires the VAT rate (e.g. 20%, 5%, or 0%) to be shown for each supply. Wave does not surface this as a required invoice field.
VAT amount as a separate line
The amount of VAT charged must appear as a distinct line on the invoice — it cannot be rolled into the total. Invoa calculates and displays this automatically.
VAT-exclusive (net) price
The price before VAT is applied must be shown. This allows the recipient to reclaim VAT correctly. Invoa shows net, VAT, and gross on every invoice.
Unique sequential invoice number
A requirement in all UK invoicing; critical for audit trail. Both tools support this, but Invoa's numbering is enforced automatically.
When to choose Invoa vs Wave
Choose Invoa when…
- You are VAT-registered in the UK and need HMRC-compliant invoices without manual workarounds
- You are subject to Making Tax Digital for VAT
- You want to connect your UK bank account and auto-reconcile invoices against payments
- You want a GBP-first product built and supported by a UK company
- You want automatic payment reminders and overdue chasing
Wave may suit you if…
- You are below the VAT threshold and do not need VAT invoice fields
- You want a full double-entry accounting suite at no cost
- You need receipt scanning via a mobile app
- You also operate in the US or Canada and want one tool for both markets
- You want unlimited free invoices and can handle the UK compliance gaps manually
Frequently asked questions
Is Wave free in the UK?
Wave's core invoicing and accounting software is free in the UK. However, Wave charges for payment processing (credit and debit card payments) and payroll. The free tier is genuinely useful for basic invoicing, but UK users quickly discover the product was designed for the North American market. VAT invoice compliance in particular requires manual workarounds that can be time-consuming and easy to get wrong.
Does Wave support UK VAT invoices?
Not automatically. HMRC requires VAT invoices to show your VAT registration number, the VAT rate applied to each line, and the VAT amount as a distinct line item. Wave's standard invoice template does not include these as built-in fields. UK VAT-registered users have to add this information manually — usually via a custom note or memo field — which creates room for error and is technically not a compliant VAT invoice layout. Invoa generates fully HMRC-compliant VAT invoices out of the box.
Does Wave support Making Tax Digital?
No. Wave has no Making Tax Digital (MTD) integration. HMRC's MTD for VAT programme has been mandatory for VAT-registered businesses since 2019 (above the threshold) and 2022 (all VAT-registered businesses). Wave is not listed as HMRC-recognised MTD-compatible software. UK freelancers subject to MTD need to use compatible software or a bridging tool alongside Wave — adding complexity and cost that eliminates most of the free-tier benefit.
Is Invoa free?
Invoa has a free Starter plan that includes one invoice per month — enough to try the product and see how HMRC-compliant VAT invoices work in practice. Paid plans start at £7.99 per month and include unlimited invoices, automatic payment reminders, and UK Open Banking reconciliation. There is no credit card required to start.
VAT invoice generator
Create a fully HMRC-compliant VAT invoice in minutes
Invoa vs FreeAgent
How does Invoa compare to FreeAgent for UK freelancers?
Invoa vs Xero
Xero pricing vs Invoa — which is right for you?
UK invoicing done right, from £7.99/mo
Invoa generates HMRC-compliant VAT invoices automatically, connects to your UK bank account, and sends payment reminders — so you spend less time on admin and more time on your work.
Get Started FreeFree plan available. No credit card required.