How freelancers should invoice
Put the project name at the top so the client’s finance team can match the invoice to the agreement. Bill by milestone or deliverable rather than one lump sum: “Milestone 1 – research and wireframes”, “Milestone 2 – UI design (approved 5 Sep)”. Each line is a reminder of what was delivered and when it was signed off, which shortens approval. If you charge by the hour, the hourly invoice generator gives you daily rows instead.
Give the client every way to pay you in one place: PayPal address, bank name, IBAN or account number, and the SWIFT/BIC or routing number for international transfers. These details are saved on your device so you type them once. Set a due date – 14 days is standard for freelancers, 30 for larger companies – and say in the notes what happens if it is late.
Freelance invoice rules in the US and UK
US: a freelance invoice is an ordinary invoice; there is no special format. Clients that pay you above the annual reporting threshold will ask for a W‑9 and send you a 1099‑NEC in January – your invoices are the backup for those amounts, so keep them. Sales tax on services depends on the state and the service; most creative and consulting work is not taxed, but check your state if you deliver anything physical or software.
UK: sole traders must put their own name (and any trading name) and a contact address on the invoice; a limited company must use its full registered name. Once your turnover crosses the VAT threshold you must register and charge VAT, at which point the invoice must show your VAT number, the VAT rate and the VAT amount. You may add statutory late-payment interest and a fixed compensation fee to overdue business-to-business invoices; a short line in the notes (“Late payments are subject to statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998”) is enough.
Common mistakes
- Invoicing the contact instead of the company. Ask for the exact legal entity and billing address before you send the first invoice.
- No project reference. Agencies run dozens of projects; an invoice that doesn’t name one sits in a queue.
- Missing bank fees note. For international clients, state who bears transfer fees, or expect to receive 25 less than you billed.
- Waiting until the end. Invoice each milestone when it is approved; cash flow is the freelancer’s real risk.
Frequently asked questions
Do I need a business name to invoice as a freelancer?
No. You can invoice under your own name. Put your name in the “From” block and add a trading name if you use one. UK sole traders must show their own name in any case.
How do I invoice a client abroad?
Enter the client’s full address including country, choose the currency you agreed on, and give your IBAN and SWIFT/BIC so the transfer arrives. State who pays bank charges. For UK freelancers, services to business customers outside the UK are usually outside the scope of VAT.
Can I charge a deposit?
Yes. Create an invoice with one line such as “Deposit – 50% of project fee” and reference the agreement. When the project ends, invoice the balance and mention the deposit already paid in the notes.
What if the client pays late?
Say your terms up front on the invoice. In the UK you can claim statutory interest on late B2B payments; in the US it depends on the contract. A polite reminder on the due date plus a second invoice copy marked “Reminder” usually works.
Can I mark an invoice as paid?
Tick “Mark as PAID” and download the PDF again. The document gets a PAID stamp and the total is labeled “Amount paid”, which doubles as a receipt for the client.