How to invoice as a freelancer: the complete guide

Getting paid is the best part of freelancing. But sending a professional, correct invoice is what makes it happen smoothly — and protects you if something goes wrong. Here's everything you need to know.

What must a freelance invoice include?

A valid invoice needs to contain specific information to be legally and professionally sound. Missing any of these can cause delays in payment or create tax problems:

• The word "Invoice" clearly at the top
• Invoice number — a unique sequential reference (e.g. INV-2025-001)
• Your name and address (or business name if you have one)
• Your tax ID / UTR (for UK freelancers, your Unique Taxpayer Reference)
• Client's name and address
• Invoice date and due date
• Description of services — be specific, not just "Freelance work"
• Quantity, unit price and line totals
• VAT amount (if you're VAT registered)
• Total amount due
• Payment details — bank account, sort code, IBAN or payment link

VAT: do you need to charge it?

In the UK, you only need to charge VAT if your taxable turnover exceeds £90,000 (as of 2024/25) in a 12-month period. Below this threshold, you don't charge VAT — and you shouldn't add it to your invoices. If you are VAT registered, the standard rate is 20% for most services.

Payment terms — set them clearly

Always state your payment terms on every invoice. Common terms are Net 7, Net 14 or Net 30 — meaning payment is due within 7, 14 or 30 days of the invoice date. You can also charge statutory interest on late payments in the UK (currently 8% plus the Bank of England base rate for business-to-business transactions).

How to handle late payments

Send a polite reminder one day after the due date passes. If no response after a week, follow up by phone. After 30 days, you can issue a formal notice and apply late payment charges. For persistent non-payers, the UK small claims court (Money Claim Online) handles claims up to £10,000 efficiently.

Should you use invoice software or a template?

For occasional invoices, a clean template you can download as PDF is perfectly fine and free. When you're invoicing regularly (more than 3-4 clients per month), dedicated accounting software like FreeAgent, Wave or QuickBooks saves time and makes tax returns much easier.