A date has been set: the UK Government announced in the November 2025 budget that, from April 2029, VAT invoices must be sent and received as structured e-Invoices.
For construction, this won’t simply be a system adjustment – it’s the next big push towards a competitive and growing economy, fair and on-time payments, structured data to promote efficiency, and more real time processing across complex supply chains. And, as the UK’s largest software solution provider for construction companies and their supply chains, Causeway is fully engaging and embracing the government's move on e-Invoicing.
With more than two decades of experience working at the heart of the construction industry, we’ve shaped our solutions around the realities of fragmented supply chains, high-volume transactions, and complex approval workflows. That’s why Causeway is an active member of UK eLabs - to help shape the national e‑Invoicing framework and ensure it works for construction rather than against it. And it’s why CausewayOne e‑Invoicing (formerly Causeway Tradex) already provides contractors and suppliers with everything they need to transition smoothly: structured invoice exchange, automated validation, seamless ERP integration, and full visibility across every stage of the process. In short, we’re not just prepared for the 2029 e-Invoicing mandate – we’re building on a platform that’s been doing this successfully for many years.
Recognising the value of digital information in supporting real-time analysis and improved decision making, the mandate requires that all invoices are exchanged as data files and not as paper, images or PDFs. The mandate is focussed on invoices as they play a pivotal role in payment and VAT processing. At the same time, the benefits of digital transactions apply to all procure-to-pay (P2P) transactions.
The automatic exchange and validation of these documents allow for fewer errors, faster approvals and a clearer audit trail, meaning less reasons for payment delays. The government has also explicitly expressed within its roadmap planning that this move will help reduce VAT fraud and admin costs.
The construction industry feels the negative impact of payment friction more than most. Valuations, retentions, multi-tier supply chains, to name but a few, create a domino effect in payment processing and delays. Standardising and automating invoice content, processing and status information are valuable steps to improve approvals and to reduce disputes.
This is also designed to support the new Fair Payment Code, which aims to improve payment culture by encouraging and supporting organisations to streamline the process around paying suppliers – particularly small businesses – promptly and fairly. The Fair Payment Code sets clear expectations around transparent terms, fair practices, and collaborative problem solving, and publicly recognises good performance through a voluntary tiered award system (Bronze, Silver, Gold).
Not only that… if you sell to government, there's already a “now, not later” point. Contracting authorities are already expected to accept and process standardised e-Invoices under Procurement Act guidance. Therefore, implementing truly digital e-Invoicing processes today will deliver immediate and longer-term benefits, especially if you are involved with public framework projects.
UK eLab is an independent group bringing together government departments, business, technology providers and other interest groups to support and promote the effective and successful implementation of the 2029 e-Invoicing mandate. It is working with government and is seeking an open interoperable network to promote, standardise and accelerate the beneficial adoption of electronic invoicing across the UK.
As an active participant in UK eLab, Causeway’s role is making sure construction’s voice is heard as policy turns into delivery. This matters because the construction industry has complexities that a generic approach might miss. Our direct involvement ensures our customers remain well-informed and prepared to meet emerging regulatory requirements. We are closely monitoring developments, providing timely commentary, and delivering early insights into future policy decisions as they become clearer.
Rather than seeing 2029 as a starting point, it is strongly recommended that organisations should focus on the importance of early, deliberate planning and preparation – staring now. This year is not just about awareness; rather it’s a call to action to ensure internal IT and external services are in place to prepare for the mandate and to benefit from e-Invoicing from the earliest time.
While the government engages with industry to iron out and confirm the details of the mandate implementation roadmap, there is a time window to set plans that combine compliance, efficient P2P processes and streamlined payment processing:
Map how your invoices move today – by business unit, framework and joint venture – and identify the pinch points you can improve with better data access and processing.
Ask two practical questions of your systems: can we send and receive structured e-Invoices; and can project teams see invoice status without phoning finance?
Engage with key partners, especially those already exchanging e-Invoices, and take practical steps to build initial digital connections.
While PDFs are still used today as mode of invoice exchanged - from which data can be extracted - the mandate is for truly digital invoices. The transition period allows time to remove the automation barrier and costs associated with processing via PDFs to be avoided by establishing end-to-end digital processing.
Causeway has long and extensive experience delivering e-Invoicing benefits through our CausewayOne platform. CausewayOne e-Invoicing already connects buyers and suppliers and facilitates exchange of digital transactions with all your supply chain partners.
CausewayOne e-Invoicing provides straight-through, touchless, processing of invoices between back-office systems. With 60,000+ suppliers onboarded and most of construction supply chains already trading electronically across the platform, the uptake and return on investment is fast.
Suppliers are able to submit invoices using a range of connection options with invoices automatically checked against validation and buyer rules. They can also be matched to POs and delivery information, reducing manual processes, errors and query chasing. Customers report an average reduction of over 50% in manual processing effort. They also praise standardised processing, shared visibility and auditability and simpler payments, aligned with the Fair Payment Code. With clear benefits to buyers and sellers, supply chain relationships are greatly strengthened.
Causeway is committed to keeping our customers briefed as policy details firm up during this year, and to support early adoption of best practice invoice processing. If you’d like a short review of your current flows and the changes that would have the biggest impact on your operations, just let us know.
You can also book a short demo of CausewayOne e-Invoicing and start turning e-Invoicing to an advantage for your projects and your partners.