Free Credit Note Template

Last updated: October 2026



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Acme Design Studio

hello@acmedesign.studio · +44 20 7946 0018
London, UK
CREDIT NOTECN-2026-0039 · Issued 6 Oct 2026
Issued against invoice INV-2026-1042. Please deduct this credit from the outstanding balance.
Credited to
Brightline Media Ltd
accounts@brightline.co.uk
14 Rivington Street, London EC2A 4BX
Description Qty Rate Credit
Website redesign, duplicate hours billed in error 4 £65.00 -£260.00
Subtotal credited£260.00
Total credited£260.00
Reason: duplicate hours billed in error on INV-2026-1042. Our apologies for the mistake.
This credit note reduces the balance of the invoice above. No payment is due on this document.

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What is this template for?

This free credit note template is for correcting an invoice you have already sent: overcharges, returned goods, discounts applied late, or simple billing errors. It mirrors a professional invoice layout but is clearly marked as a credit note, with the credit shown as a reduction against the original invoice.

Who should use it?

Any freelancer or business that needs to reduce or cancel an amount previously invoiced. If you have not invoiced yet, just fix the invoice template instead — a credit note is only for issued invoices.

What is inside the template?

Your business and client details, credit note number and date, a reference to the original invoice, credit lines shown as negative amounts, subtotal and total credited, and a reason box explaining the correction.

Frequently asked questions

What is a credit note?

A credit note is a document that reduces the amount a customer owes on an invoice you already issued. It is used for overcharges, returns, cancelled work or billing errors.

When should I issue a credit note instead of editing the invoice?

Once an invoice has been sent — and especially once it has been entered into accounts or a VAT return — do not silently edit it. Issue a credit note and, if needed, a corrected invoice.

Does a credit note need a unique number?

Yes. Number credit notes in their own sequential series, for example CN-2026-0039, so they are easy to trace.

How does a credit note affect VAT?

A credit note reduces the VAT you declared on the original invoice. Reflect the adjustment in your VAT records and return. If in doubt, ask your accountant.

Should the credit show as a negative amount?

Yes — this template shows credit lines and totals as reductions, which is the standard presentation. The total credited is the amount the customer no longer owes.

Want to customise this further? Open it in the free invoice generator — add your logo, save clients and download a polished PDF.

Reviewed by

Arham Arshad, founder of LancerBill, checked this template and its downloads in October 2026.