Invoice Payment Terms for UK Freelancers: A Plain-English Guide

What Payment Terms Actually Are

Payment terms define how long your client has to pay after receiving an invoice. They're part of your contract with the client, and setting them clearly upfront avoids arguments later.

The most common formats you'll see are: Net 14 (payment within 14 days), Net 30 (within 30 days), and Due on receipt (payment expected immediately or within a few days). There are others, but these three cover the vast majority of freelance invoicing.

What's Standard in the UK

Net 30 has traditionally been the default in UK business. It's what many large companies expect and what accountants' brains default to. But it's becoming less common in professional services, and there's no reason you have to accept it.

Net 14 is now standard for most freelancers working with small and medium-sized businesses. It's short enough to keep cash flowing, long enough not to alarm clients. Most will pay within this window without complaint.

Net 7 works well for smaller invoices and for clients who have shown they pay promptly. Some freelancers use it by default; others reserve it for invoice amounts below a certain threshold.

Why Shorter Terms Help You

The maths is straightforward. If you invoice £3,000 on 1 March with Net 30 terms, you won't see that money until 31 March at the earliest. With Net 14, you'd have it by 15 March. Over the course of a year, across multiple clients and dozens of invoices, shorter terms make a material difference to your cash position.

Most clients don't push back on 14-day terms. They pay when the invoice arrives and the payment run is next, which is often sooner than the stated deadline anyway.

Deposits and Staged Payments

Payment terms aren't just about when the final invoice is due. For larger projects, structured payment is worth building into your terms from the start.

A common structure: 50% deposit on project start, 50% on delivery. For longer projects, break it into thirds or tie payments to milestones. This isn't unusual or aggressive. It's standard practice and it protects both parties.

Late Payment Rights

Under the Late Payment of Commercial Debts (Interest) Act 1998, you're entitled to charge statutory interest (8% above the Bank of England base rate) on overdue business invoices, plus a fixed debt recovery fee. You don't have to use these rights, but stating on your invoice that late payments may attract statutory interest tends to encourage timely payment.

The phrase to add: "Late payments may incur interest under the Late Payment of Commercial Debts (Interest) Act 1998." Short, factual, and signals that you know your rights.

Setting Terms With New Clients

Agree terms before you start work, not on the invoice. Put them in your proposal or contract: "Payment terms are 14 days from invoice date. Projects over £2,000 require a 30% deposit to begin." When terms are established at the outset, there's no awkwardness when the invoice arrives.

Updating Terms With Existing Clients

If you've been operating on Net 30 and want to move to Net 14, just tell clients. Give them a month's notice. Most will accept the change without any fuss. The few who push back will tell you, and you can negotiate from there.