Invoice payment terms wording for UK freelancers
Pick your payment period, deposit and late-payment approach, and get a short payment-terms paragraph to paste onto an invoice or quote. It is built in your browser and nothing you type leaves this page.
What each choice means
- Payment period. For UK business-to-business contracts with no agreed period, gov.uk says payment is due 30 days after the invoice or the goods or services, whichever is later. Agreed periods are normally 30 days or less; a longer one must not be grossly unfair to you. Check the current wording on gov.uk before you rely on it.
- Deposit. A deposit before you start is the simplest way to avoid chasing the whole amount later. Put it on the quote, not only on the final invoice.
- Statutory interest. Unless your contract sets a "substantial remedy", late business debts can attract 8% over the Bank of England base rate plus a fixed sum of GBP 40, 70 or 100 depending on the invoice size. Work out the figures with the free late payment interest calculator.
- A stated rate. If you name your own rate in the contract it must be a substantial remedy for the delay, so a token rate may not displace the statutory one. If unsure, rely on the statutory wording.
- Consumers. This wording is for business customers. Different rules apply when you sell to a private individual.
Put the terms in writing before the work
Terms agreed on the quote are much easier to enforce than terms that first appear on the invoice. Send the same paragraph with the quote, then repeat it on the invoice. When an invoice does go late, four reminder emails take it from a friendly nudge to a final notice, and this guide sets out when to send each one. To keep every unpaid invoice and promise to pay in one list, try Chasebook, free for 5 open invoices.
This is general information to help you draft your own terms, not legal advice. If a large sum depends on the wording, ask a solicitor.