Late payments for freelancers and contractors
Updated 28 June 2026
As a freelancer or contractor, you usually have the least buffer of anyone when a client pays late — there is no finance team and no reserve to fall back on. A single overdue invoice can mean a month without income.
The good news: the same statutory protections that apply to larger businesses apply to you too.
Protect yourself up front
Agree clear written terms before you start, take a deposit for larger projects, and bill against milestones rather than waiting until the end. Invoice promptly and include everything the client's accounts team needs to pay you.
Know your statutory rights
You can charge statutory interest of 8% plus the Bank of England base rate on overdue B2B invoices, plus fixed compensation of £40, £70 or £100 depending on the invoice size — even if your contract does not mention it. See our guide to UK statutory interest on late payments.
Chase early and consistently
Don't let an overdue invoice drift. A prompt reminder, a follow-up call, then a firm written request referencing statutory interest resolves most late payments. See our guide to chasing an overdue invoice.
Frequently asked questions
Can a freelancer charge interest on a late invoice?
Yes. For business clients you can charge statutory interest of 8% plus the Bank of England base rate, plus fixed compensation of £40–£100 depending on the invoice size, even without a contract clause.
How can freelancers avoid late payment?
Agree clear written terms up front, take deposits and bill against milestones, invoice promptly with all required details, and chase overdue invoices early and consistently.
Should freelancers take a deposit?
For anything beyond a small job, yes. A deposit limits how much you are ever owed at once and filters out clients who are unwilling or unable to pay.
Sources
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