How to Invoice as a Freelancer: Our Easy 5-Step Guide

How to Invoice as a Freelancer in the UK

From customizable freelance invoice templates to simple, free invoice templates, we provide the tools you need to create clear, professional invoices. Each invoice you send to a client reflects your professionalism and attention to detail. There’s just 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. Many clients, customers and companies in the UK fall behind on payments all year round, but at what time of year do businesses start searching for how to deal with overdue payments?

Do I need to have a lot of experience to become a freelancer?

  • Working as a freelancer in the UK requires you to prepare the invoice professionally.
  • If not, the payment will be converted to pounds by your bank before being deposited, which may mean you get a poor exchange rate or need to pay extra fees to be paid from abroad.
  • This is the sum total of the subtotal for the services or products sold plus the taxes owed, if applicable.
  • Many insurance policies will protect you in the case of fire, theft, or flooding.
  • You’ll need to include all the information listed above to make sure your client can pay you easily and on time.

After mentioning all these details, you must also mention the payment terms you and your client agreed to. When you prepare an invoice, you should note proper invoice terms. The invoice terms refer to rules that the clients will need to follow while paying for the services. As a freelancer, you need to maintain the payment cycle and cash flow details. To ensure that you are considered a reliable and professional freelancer, you need to prepare the invoice accordingly.

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How to Invoice as a Freelancer in the UK

Some freelancers also charge late fees for clients that don’t pay on time. If you charge late fees, include the penalties and fees in this section of the invoice, as well. Sole traders in the UK are encouraged but not legally required to have a business bank account.

How to Invoice as a Freelancer in the UK

Freelancing as a limited company

A final invoice is the last invoice you’ll send to a client within the scope of a specific project. Typically, it reflects any earlier payment terms and conditions (i.e., those stated in the proforma and/or interim invoice). Most freelancers send standard invoices — a one-off invoice for service(s) or product(s) delivered, such as described above.

2 Add Your Payment Terms

Psst, you can get access to European payment infrastructure with Xolo Go — an invoicing app that allows you to legally invoice clients in 186 countries without incorporating a company. Each user gets a business bank account (IBAN) for accepting multi-currency payments. And you can then withdraw all the earned funds to your linked personal bank how to invoice as a freelancer account within 24 hours. Yes, legally you’re obliged to send invoices to each client for rendered services (unless you’re relying on a freelance marketplace or a talent management platform to do so on your behalf). You can forgo an invoice for any services delivered in person, however, if neither you nor the client are a VAT-registered entity.

How to Invoice as a Freelancer in the UK

What to include in what you have done for the client

  • If you’re not sure whether or not to set up a UK business to cover your freelance work, it’s worth learning a bit more about the pros and cons of each option.
  • An interim invoice gets issued before a project is completed, typically for large or ongoing engagements.
  • One of the most daunting aspects of becoming a freelancer is getting your head around your taxes.
  • The reason for this is because freelancers and their businesses are legally one.
  • They raise the bar for freelance talent and as such, it would be very useful at this stage to have a portfolio before applying or setting up your profile with them.

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  • Be clear about potential fees for things like edits or late payments.
  • So if you or your employees work on a fixed hourly rate, you can work out your pay in seconds and make sure that you’re charging the right amount for your work.
  • A business account like Coconut will do much of the bookkeeping legwork for you, including showing you your estimated taxes so you can keep on top of cash flow.
  • In many cases, freelancers go with a project proposal (with a scope of work and price estimate) or a client price quote.
  • As a result, you can work towards understanding how you can be paid.

Should I charge my clients VAT?