Invoicing in the UK: Complete Guide on How to Write Payment Terms

If you’re a freelancer or business owner and need to invoice your client for the first time, you may want to learn more about common payment terms on invoices from the UK.

This guide has you covered. We’ll look at standard payment terms (UK), including a few different options, and what to include in your payment terms to cover you in the eventuality that your invoice payment doesn’t arrive on time.

Plus, to help you get paid more conveniently and faster from overseas, we’ll introduce Wise Business. Open a Wise Business account today for simple, low cost¹ ways to receive payments in 8+ currencies - so it’s easier than ever when a foreign client wants to pay you.

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What are payment terms?

Contract payment terms detail when and how you expect to be paid for goods or services sold, including the payment due date, currency and acceptable payment methods.

Clear invoice payment terms are essential in any well written invoice². It’s good practice to discuss payment terms with the customer prior to the invoice processing, so there are no surprises - but backing up your negotiation with an easy to understand line on your invoice can help avoid misunderstandings down the line.

If you don’t add payment terms into your invoice, the default will usually be that your client is obliged to pay within 30 days³. However, you can negotiate different terms upfront if you'd prefer, as long as they’re detailed in your invoice.

If your client does not pay by the agreed payment date, you have a number of legal options including charging interest as a penalty⁴. However, most payment issues are better solved by clear communication, which can also strengthen your relationship with the client - threatening penalties should only be used as a last resort.

Standard payment terms UK

As we’ve already seen, you can negotiate the payment terms and due date that you prefer with your client, as long as it’s all clearly detailed when it comes to billing. However, it helps to understand the most common payment terms for businesses in the UK, as these will be what your client is used to working with.

The most commonly used payment terms in the UK include:

• PIA - payment in advance
• Net 7 - payment due 7 days after the invoice date
• Net 30 - payment due 30 days after the invoice date
• Net 60 - payment due 60 days after the invoice date
• Net 90 - payment due 90 days after the invoice date
• EOM - payment due at the end of the month in which the invoice was sent

Bear in mind that when invoicing international customers it is important to also understand the country specific business culture and standards - these could be quite different to the UK. Talk through your payment options and preferences with your client early on in your relationship - this is a professional approach, and can avoid issues later.

Read our guide on how to invoice an EU company as a UK business

Payment terms - examples

You can add in your payment terms to your invoice in a number of ways. If you’re using invoicing software or a template you’ll usually find a line to customise this information. If you’d prefer to create your own invoice manually you can do that too. In this case, a simple solution can be to include a panel detailing the payment terms at the top of the invoice, before you list out your itemised billing which can be used to check the full payment amount.

Billing in multiple currencies? You can do that easily with Wise Business, a non-bank provider that offers international business account with invoicing tool.

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Here’s an example of possible payment term wording for a 60 days payment for GBP currency and a 30 days payment for EUR currency using Wise account details.

Payment terms - example 1:

Payment details:
Payment by bank deposit in GBP, to Wise Business
Account name:
[Account holder full name]
Sort code:
[XX XX XX]
Account number:
[XXXXXXX]
Payment amount: [XX] (See below for itemised invoice)
Terms: Net 60
Due: [Due date]
Late payments may attract interest - please get in touch to discuss any problems with making prompt payment

Payment terms - example 2:

Payment details:
Payment by bank deposit in EUR, to Wise Business
Account name:
[Account holder full name]
IBAN:
[XXXX XXXX XXXX]
Bank code (SWIFT/BIC):
[XXXXXXX]
Payment amount: [XX] (See below for itemised invoice)
Terms: Net 30
Due: [Due date]
Late payments may attract interest - please get in touch to discuss any problems with making prompt payment

Don’t forget to also include your fully itemised bill which shows line by line the goods or services you’ve sold. This will allow the client to quickly check and reconcile the payment, which could mean you get your money faster.

Tips on how to get paid on time

Here are a few final thoughts on how to make sure you get paid on time and without unnecessary hassle:

• Make sure your invoice is clear and includes all the information needed for your client to check and reconcile it.
• Make it as easy as possible for the client to pay - offer multiple payment methods if possible, and if you're working with overseas customers, consider accepting payment in their home currency with a Wise Business account.
• Depending on your business type, you may offer a discount for quick payment - negotiate this in advance and ensure it’s captured in your invoice clearly.
• Keep a diary note of when your money is due so you can promptly and politely follow up if it is late.
• Know your legal rights and options if you’re not paid on time⁵ - these can include issuing a statutory demand⁶ or charging interest, but penalties like these should only be used when communication and mediation has been exhausted.

Get paid on time in multiple currencies - Meet Wise Business

Often the key to getting paid on time and without hassle is to make it as easy as possible for your customer to pay.

If you’re billing clients based overseas as well as in the UK, choose Wise Business to request and receive payments in 8+ different global currencies. That makes it easier and cheaper for clients, who can pay in their home currency instead of worrying about exchange fees.

Receiving money in 8+ foreign currencies to Wise Business is free for you too, no matter how the client sends the money. There’s a small fee to pay if you receive USD by wire, but if you’re getting paid in US dollars, you can still ask your client to send money by ACH to receive it with no Wise fee to pay.

Open a Wise Business account online or with just your phone, to receive convenient international payments, hold and exchange 40+ currencies, and get the mid-market exchange rate and low, transparent fees from 0.33%¹ whenever you need to switch from one currency to another.

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FAQs - How to Write Payment Terms

How can I encourage faster payments without damaging client relationships?

Encouraging prompt payment is a delicate balance, but several strategies can help without causing friction. Consider offering a small discount for early payment, such as a 2% reduction if the invoice is settled within 10 days. You can also make paying easier by using modern invoicing software with integrated payment links, like Wise Business, for instant card or bank payments. Clear, polite, and automated payment reminders also help keep your invoice at the top of your client's to-do list.

Do payment terms change when invoicing clients outside the UK?

Yes, when invoicing internationally, your payment terms should be even more explicit to avoid confusion and delays. It is crucial to state the currency the payment must be made in (e.g., GBP, EUR, USD) to avoid disputes over exchange rates. You should also clearly specify the accepted payment methods and outline who is responsible for covering any international bank transfer or currency conversion fees, as these can be significant.

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What should I include in my payment terms to handle potential disputes?

To minimise the chance of disputes, your terms need to be unambiguous and comprehensive. Include a clause detailing the process for raising a query about an invoice, including a specific timeframe (e.g., "Any queries regarding this invoice must be raised within 7 days of receipt"). You should also inform the consequences of non-payment, referencing your right to charge statutory interest on overdue amounts as a final deterrent.

Clear payment terms backed up by good communication will mean getting paid on time every time is easier. Use this guide to get started, and don’t forget to check out Wise Business as a smart way to allow foreign customers to pay you conveniently in 8+ currencies.

Sources used in this article:

Sources last checked 24/09/2025