What Payment Terms Should a UK Company Put on an Invoice?

A UK limited company should put clear payment terms on its invoices stating when and how the customer must pay.

Common payment terms include payment upfront, 7 days, 14 days or 30 days, depending on the business and customer relationship.

What Are Invoice Payment Terms?

Payment terms tell the customer when payment is due and how it should be made.

For example:

Payment terms: 14 days from invoice date
Invoice date: 24 August 2026
Payment due: 7 September 2026

Using an exact due date can make the invoice clearer.

Common Payment Terms

UK companies commonly use:

• Payment upfront – before goods or services are supplied
• Due on receipt – payment requested immediately
• 7 days – useful for short-term services
• 14 days – common for smaller businesses
• 30 days – widely used for B2B transactions
• Milestone payments – useful for larger projects

Businesses can generally agree their own payment terms with customers.

What Should the Invoice Say?

A simple payment section could be:

Payment Terms: 14 days
Payment Due: 7 September 2026
Payment Method: Bank transfer
Payment Reference: INV-001

For international customers, also make the payment currency clear:

Currency: GBP, EUR or USD

What If No Payment Date Is Agreed?

If no payment date has been agreed, UK rules generally treat payment as late 30 days after the customer receives the invoice or the goods or services, whichever is later.

GOV.UK payment obligations

Can a UK Company Charge Interest on Late Payments?

For qualifying B2B transactions, a company may be entitled to claim statutory interest on late commercial payments, as well as certain debt-recovery costs.

The statutory interest rate is generally 8% plus the Bank of England base rate for business-to-business transactions, subject to the applicable rules and contract terms.

GOV.UK late commercial payment guidance

Which Payment Terms Are Best?

For many small UK companies, 14-day payment terms provide a reasonable balance between customer flexibility and cash flow.

For larger B2B customers, 30 days is common.

For new customers or higher-risk transactions, a company might instead request payment upfront or a deposit.

Final Answer

A UK company should clearly state:

Payment terms → Exact due date → Payment method → Currency → Payment reference

For example:

Payment Terms: 14 days from invoice date
Payment Due: 7 September 2026
Currency: GBP
Payment Method: Bank transfer
Reference: INV-001

Clear payment terms make it easier to collect invoices on time and reduce misunderstandings with customers.

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