How to invoice as a UK freelancer (with a free template)

In short

A UK freelancer invoice must show a unique invoice number, your name and address (and trading name if you have one), the client's name and address, a clear description of the work, the date, the amount due and payment details. If you're VAT-registered you must also show your VAT number, the VAT rate and the VAT amount separately. Standard payment terms are 30 days unless you agree otherwise.

Getting paid starts with a clear, correct invoice. It doesn’t need to be fancy, but it does need the right details — both so your client can pay you without questions and so your records stand up. This guide covers exactly what to include, the difference between a VAT and non-VAT invoice, and how to handle late payers.

What every invoice must include

Even as a sole trader who isn’t VAT-registered, an invoice should always show:

The word “Invoice” clearly on the document
A unique, sequential invoice number (e.g. 2026-001, 2026-002) so nothing is duplicated or missed
Your name and, if you trade under a business name, that name too
Your address and contact details
The client’s name and address
A clear description of the goods or services supplied
The date of the invoice (and the date the work was supplied, if different)
The amount due, and how it breaks down if there are several items
Payment details — bank name, account number and sort code — and the due date

If you run a limited company, you must also show the company’s registered name and number and registered office address.

You can build a compliant invoice with all of these fields — and download it as a PDF — using our free invoice generator. Nothing is stored and there’s no signup.

VAT invoices are different

If you’re VAT-registered, an ordinary invoice isn’t enough — you must issue a VAT invoice that additionally shows:

Your VAT registration number
The VAT rate applied to each line (normally 20%)
The net amount, the VAT amount and the gross total, each shown separately

Showing the VAT as its own line lets VAT-registered clients reclaim it and keeps your records clean. If you’re not registered, you must not charge or mention VAT at all.

Setting payment terms

Agree your terms up front and put them on the invoice. Common choices:

Due on receipt or 7 days for smaller or one-off jobs
14 or 30 days for regular business clients

If you don’t specify a term, the law assumes 30 days for business-to-business transactions. A deposit (say 25–50% up front) is entirely normal for larger projects and protects your cash flow.

Chasing late payment

Late payment is the freelancer’s most common headache. UK law is on your side for business-to-business invoices under the Late Payment of Commercial Debts legislation:

You can charge statutory interest of 8% plus the Bank of England base rate on overdue commercial invoices.
You can also claim a fixed compensation sum per late invoice — £40 for debts under £1,000, £70 for £1,000–£9,999.99, and £100 for £10,000 or more.

You don’t have to charge these, and many freelancers reserve them as leverage rather than applying them automatically. A polite reminder on day one past due, a firmer one a week later, and a clear mention of your statutory rights usually does the job.

Good invoicing habits

Number invoices sequentially and never reuse a number.
Send promptly — the clock on payment only starts when the invoice lands.
Keep copies for at least six years for HMRC.
State the due date explicitly (“Payment due by 30 April 2026”), not just “30 days”.
Include a reference you ask the client to use on the bank transfer, so you can reconcile payments quickly.

Do you need accounting software?

For a handful of invoices a month, a well-structured PDF and a spreadsheet are plenty — start simple with the invoice generator. As you grow, or once you’re VAT-registered and filing under Making Tax Digital, dedicated software that stores digital records and files returns becomes worth the cost.

This guide is information, not tax or legal advice. Late-payment interest rates track the Bank of England base rate, which changes — check the current figure at gov.uk/late-commercial-payments-interest-debt-recovery before relying on it.

Try the tool Free Invoice Generator Create and download a professional UK invoice PDF in seconds — VAT-ready and itemised. Free, no signup, and nothing you enter ever leaves your browser.

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