Standard UK Invoice Payment Terms Explained (Net 30, Net 7)

Payment Terms: The Default Rule

If you don't specify payment terms on your invoice, UK law defaults to Net 30 (30 days from invoice date). But you can negotiate shorter or longer terms depending on your business.

Common Payment Terms

Term	Meaning	Best For
Due on Receipt	Payment immediately (same day ideally)	One-off jobs, new clients, small amounts
Net 7	Within 7 days	Regular clients, urgent need for cash
Net 14	Within 14 days	Standard for freelancers and SMEs
Net 30	Within 30 days	Corporate clients (often non-negotiable)
Net 60 / 90	Within 60 or 90 days	Large corporations (cash flow nightmare for you)
2/10 Net 30	2% discount if paid in 10 days; otherwise due in 30	Encouraging faster payment

How to Use Terms on Your Invoice

Write clearly at the bottom of every invoice:

Payment Terms: Net 14
Due Date: 29 May 2026 (14 days from invoice date 15 May)

By Industry

• Freelancers/Consultants: Net 7 or Net 14 (you need money fast)
• Agencies: Net 14 to Net 30 (depending on client size)
• Tradespeople: Due on receipt or Net 7 (material costs upfront)
• SaaS/Software: Monthly (Net 30) or due on receipt
• Retailers: Due on receipt or same-day payment

Negotiating Shorter Terms

If a client insists on Net 30 and you need payment faster:

• Offer a small discount for earlier payment (e.g., 1% off if paid within 7 days)
• Charge interest for late payments (legally allowed under Late Payment Act)
• Request 50% upfront on large projects
• Refuse the client (if you can afford to)

FAQ

What if I don't write payment terms on the invoice?

The legal default is Net 30 anyway. But always specify — it looks professional and avoids confusion.

Can I charge interest if they pay late?

Yes. 8% + Bank of England base rate (~13% as of 2026). Must be mentioned on the invoice to enforce it.