Use case
Contractor Invoice Template UK
A day-rate invoice example designed for UK contractors. Includes payment terms, VAT handling and a downloadable layout.
Day rate invoice structure
Most UK contractors bill by the day. The invoice shows:
- Day rate (e.g. £450)
- Number of days worked in the period
- Any expenses (with receipts)
- VAT (if registered)
- Total due, in GBP
Example: 3-day contract invoice
A typical short-engagement invoice from a UK contractor:
Sam Patel Consulting Ltd
5 King Street, Reading RG1 2HE
sam@patelconsulting.co.uk
VAT number: GB 234 5678 90
Company no: 12345678
Bill to
Acme Corp Ltd
200 Aldersgate, London EC1A 4HD
Invoice
#: INV-2026-021
Date: 23 June 2026
Due: 23 July 2026
| Description | Rate | Days | Amount |
|---|---|---|---|
| Cloud migration consultancy | £450/day | 3 | £1,350.00 |
| Net subtotal | £1,350.00 | ||
| VAT @ 20% | £270.00 | ||
| Total due | £1,620.00 | ||
Payment terms: 30 days | Bank: Sam Patel Consulting Ltd, 20-00-00, 87654321
Payment terms for contractors
30 days net is the UK contractor standard, especially with corporate or public-sector clients. Shorter terms (14 days) work for smaller agencies. Always include:
- A clear due date — not just "30 days"
- Your bank details (or umbrella company details)
- The contract or PO reference, if the client uses one
Under the Late Payment of Commercial Debts Act, you can charge statutory interest on overdue B2B invoices. Make sure your contract reflects this.
Setting your day rate
Your day rate should cover your target income, holidays, sick days, taxes and pension. Use the Freelance Rate Calculator to back-solve a sustainable day rate from your income target.
Create your contractor invoice
Use the Invoice Generator to build a contractor-ready UK invoice with VAT support, or download the UK Invoice Template. Sending a proposal first? Use the Quote Template.
Frequently asked questions
How do UK contractors usually invoice clients?
Most contractors bill by day rate, often weekly or fortnightly. The invoice typically shows day rate × number of days, plus any expenses, with payment due in 14 or 30 days.What payment terms are normal for contractors?
30 days is the most common, though some agencies use 14 days. If you work through an umbrella company or recruiter, they'll usually set the terms.Do contractors need to charge VAT?
Only if VAT registered. Many contractors operating through a limited company are VAT registered (and often on the Flat Rate Scheme). Always show your VAT number on the invoice if registered.Should I include expenses on a contractor invoice?
Yes — if your contract allows them. Show expenses as a separate line item with a receipt reference. Some clients prefer expenses on a separate invoice.