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How to Invoice as a Freelancer
Published May 6, 2026
Invoicing correctly is essential for getting paid on time and staying legally and financially compliant. This guide covers what to include on a freelance invoice, when to send it, and how to handle taxes.
What every invoice needs
A professional freelance invoice should include:
| Field | Notes |
|---|---|
| Invoice number | Sequential, unique (e.g. INV-2026-047) |
| Issue date | Date the invoice was sent |
| Due date | Standard terms: Net 15, Net 30, or specific date |
| Your name / company name | Legal name or trading name |
| Your address | Required in many jurisdictions for VAT/GST |
| Your tax ID / VAT number | Required if VAT/GST-registered |
| Client name and address | As it appears in your contract |
| Description of services | Specific enough to justify the charge |
| Quantity and rate | Hours × rate or project fee |
| Subtotal | Before tax |
| Tax amount | VAT, GST, or sales tax if applicable |
| Total | Subtotal + tax |
| Payment instructions | Bank transfer details, PayPal, Wise, etc. |
Calculating the invoice total
For hourly work:
Subtotal = Hourly Rate × Hours Worked
Tax Amount = Subtotal × Tax Rate / 100
Invoice Total = Subtotal + Tax Amount
Example: $100/hr × 20 hours = $2,000 subtotal. At 20% VAT, tax = $400, total = $2,400.
When to send invoices
- Project-based: Invoice on milestone completion or project delivery.
- Hourly retainer: Invoice weekly or bi-weekly for ongoing clients; monthly for retainers.
- Large projects: Consider splitting into 50% upfront deposit + 50% on delivery to protect cash flow.
Send invoices as soon as work is delivered — delays in invoicing typically delay payment.
Payment terms
Net 30 (pay within 30 days) is standard for B2B. However, many freelancers successfully use Net 14 or Net 15 with early-payment discounts (e.g. "2/10 Net 30" — 2% discount if paid within 10 days).
For new clients, consider requiring a 50% deposit before starting work. This protects you from non-payment and filters out low-commitment enquiries.
Tax on invoices
UK
- Register for VAT once your turnover exceeds £90,000/year (2024 threshold).
- Charge 20% standard rate VAT on most services.
- Include VAT number on all invoices once registered.
Australia
- Register for GST once your turnover exceeds AUD $75,000/year.
- Add 10% GST to your invoices.
- Lodge a BAS quarterly.
US
- Sales tax on services varies dramatically by state — many states exempt professional services.
- If you have a W-9 on file with US clients, they may issue a 1099 form at year-end.
- Foreign freelancers working with US clients often need to complete a W-8BEN form.
EU
- EU VAT rules for B2B cross-border services: "reverse charge" applies — your EU client handles the VAT.
- B2C sales to EU consumers may trigger VAT obligations under OSS rules.
Late payments
Include a late-payment clause in your contract and on your invoice:
"Invoices unpaid after [30] days will accrue interest at [2%] per month."
In many jurisdictions (UK, EU) you have a statutory right to charge interest on overdue B2B invoices. Exercise this selectively — for regular clients, a polite follow-up is usually more effective.
Invoice tools for freelancers
| Tool | Free tier | Good for |
|---|---|---|
| Wave | Yes (unlimited) | Simple freelancers, small business |
| Invoice Ninja | Yes | Open-source, self-hostable |
| FreshBooks | No | Accountants, time tracking |
| HoneyBook | No | Creative professionals |
| Google Docs template | Free | One-off invoices |
| Microsoft Word | Free (with Office) | Quick and customisable |
For most solo freelancers starting out, a clean Google Docs or Word template is sufficient. Move to dedicated software once you're handling 5+ regular clients.