Freelance Invoice Payment Terms UK: Everything You Need to Know

If you're a freelancer in the UK, choosing the right payment terms on your invoices can be the difference between getting paid on time and chasing clients for months. Here's everything you need to know.

What Are Invoice Payment Terms?

Payment terms tell your client when they need to pay you and how. Common options include:

• Net 7 — Payment due within 7 days
• Net 14 — Payment due within 14 days
• Net 30 — Payment due within 30 days (most common)
• Due on receipt — Payment expected immediately
• 50% upfront, 50% on delivery — Split payment structure

As a UK freelancer, you're free to set any terms you like. There's no legal requirement to offer Net 30 — that's just a convention.

What Payment Terms Are Normal for UK Freelancers?

Most UK freelancers use Net 14 or Net 30. However, shorter terms are increasingly common — especially for smaller projects or new clients.

Recommended starting point:

• Projects under £500 → Net 7 or due on receipt
• Projects £500–£2,000 → Net 14
• Larger projects → Net 30, or consider a split payment

Do You Have to Charge Late Payment Fees?

You don't have to, but UK law gives you the right to. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge:

• Statutory interest: 8% above the Bank of England base rate
• Flat-rate compensation: £40–£100 depending on the debt amount

You don't need to mention this on every invoice, but it's worth including a note like:

"Late payments may incur statutory interest under the Late Payment of Commercial Debts Act 1998."

This alone can encourage on-time payment without being aggressive.

What Should You Include in Your Payment Terms?

At minimum, your invoice should state:

• Due date (or number of days, e.g. "payable within 14 days")
• Accepted payment methods (BACS, bank transfer, card, etc.)
• Your bank details (account number and sort code for BACS)
• Late payment policy (optional but recommended)

How to Protect Yourself Before Starting Work

Payment terms don't start at the invoice — they start at the agreement. Consider:

1. Send a proposal or contract before starting any work
2. Agree terms in writing (email confirmation counts)
3. Request a deposit for larger projects (30–50% is standard)
4. Include payment terms in your contract, not just the invoice

What If a Client Doesn't Pay?

1. Send a polite reminder on the due date
2. Follow up 3–5 days later with a firmer reminder
3. If still unpaid, reference the Late Payment Act and state you'll add interest
4. For amounts under £10,000, you can use the Money Claim Online service (small claims court)

Free Invoice Tool with UK Payment Terms

Billdrop is a free UK invoice generator that lets you set custom payment terms, add your bank details, and download a professional PDF instantly — no account required.

Summary

• Net 14 or Net 30 are standard for UK freelancers
• You have a legal right to charge late payment interest under UK law
• Always agree terms before starting work
• A deposit is the best protection for larger projects
• Use clear, specific language — "due within 14 days of invoice date" is better than "Net 14"