How to invoice clients and deal with late payment
A freelance invoice should identify the supplier and customer, describe the work, show the relevant dates and charges, and include a unique invoice number. VAT invoices have extra requirements. Make the agreed due date and payment method clear too. GOV.UK: required invoice details.
You’ve done the work. Getting paid should be the straightforward part. The best time to remove payment confusion is before the project starts: agree who is paying, what you’re charging, whether VAT applies and when the money is due.
What must a freelance invoice include?
Your invoice needs a unique identification number, your details, the customer’s name and address, a clear description, the supply date, invoice date, amounts charged, VAT where applicable and the total owed.
As a sole trader, include your own name and any trading name. Where you use a business name, include an address where legal documents can reach you. Limited companies must use their full registered company name. VAT invoices have additional requirements. GOV.UK: required invoice details.
Also make the due date and payment method obvious. Ask whether the client needs a purchase order or a particular billing reference. Put enough detail on each line that someone outside the project can understand the charge.
For example, “Website copy: three agreed pages, project ABC, milestone two” is easier to approve than “Services”.
Invoice at the agreed stage
Your agreement might allow an upfront deposit, milestone invoices or payment after completion. You don’t always need to wait until every part of a large project is finished.
Use an invoicing system or a checked template, retain a copy and record payments against the invoice. A PDF can preserve the layout, but it isn’t proof against editing or fraud. If bank details change, verify them through a trusted channel.
If payment is late, work through the basics
First, check the due date and whether payment has arrived under an unexpected reference. Then confirm that the invoice reached the correct team and ask for a specific payment date.
A short message can be enough:
Hi, invoice CH-104 for £1,200 was due on 10 October. Could you confirm when payment will be made? I’ve attached the invoice again. Please let me know if anything is holding it up.
If there’s a dispute, ask what specifically is disputed and keep the discussion in writing. If you’re considering suspending work, check the contract before acting.
Interest and compensation may apply
For qualifying late commercial payments, statutory interest is 8 percentage points above the relevant Bank of England base rate. A contractual interest arrangement can affect whether statutory interest is available. The rules are for commercial debts; don’t apply them automatically to consumer invoices. GOV.UK: late-payment interest.
Fixed recovery compensation is normally:
Debt | Fixed compensation |
|---|---|
Below £1,000 | £40 |
£1,000–£9,999.99 | £70 |
£10,000 or more | £100 |
This is normally one fixed amount per qualifying late payment, not a new fee for every reminder. GOV.UK: recovery costs.
When no payment date is agreed, statutory timing rules apply. Check them rather than assuming that every invoice is overdue immediately after sending. GOV.UK: when payment becomes late.
If reminders fail, consider the appropriate complaint, mediation or legal recovery route for the contract and jurisdiction. Keep the invoice, agreed terms, evidence of delivery and correspondence together. Clear records make any next step easier.
