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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:

FieldNotes
Invoice numberSequential, unique (e.g. INV-2026-047)
Issue dateDate the invoice was sent
Due dateStandard terms: Net 15, Net 30, or specific date
Your name / company nameLegal name or trading name
Your addressRequired in many jurisdictions for VAT/GST
Your tax ID / VAT numberRequired if VAT/GST-registered
Client name and addressAs it appears in your contract
Description of servicesSpecific enough to justify the charge
Quantity and rateHours × rate or project fee
SubtotalBefore tax
Tax amountVAT, GST, or sales tax if applicable
TotalSubtotal + tax
Payment instructionsBank 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

ToolFree tierGood for
WaveYes (unlimited)Simple freelancers, small business
Invoice NinjaYesOpen-source, self-hostable
FreshBooksNoAccountants, time tracking
HoneyBookNoCreative professionals
Google Docs templateFreeOne-off invoices
Microsoft WordFree (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.