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Contract Template Pack — £15 →Most UK freelancers use 14 or 30-day payment terms. For new clients, shorter terms (7–14 days) with a 25–50% deposit are recommended. The key is to be explicit — vague terms like "payment due promptly" lead to late payments. Always include a specific number of days and a clear late payment clause.
Payment terms become legally binding when both parties agree to them as part of a contract or when included on an accepted quote/proposal. The late payment interest and compensation clauses are based on the Late Payment of Commercial Debts (Interest) Act 1998 — your statutory rights exist even without explicit terms. We recommend having a solicitor review your full contract.
Yes, especially for new clients or projects over £500. A 25–50% deposit protects you from non-payment, improves cash flow, and demonstrates the client's commitment. It's standard practice in the UK freelance industry. If a client refuses to pay a deposit, that's often a red flag.
You can charge 8% above the Bank of England base rate on late B2B payments. As of February 2026, the base rate is 4.5%, making the total statutory rate 12.5% per year. You can also claim fixed compensation: £40 (debts under £1,000), £70 (£1,000–£9,999), or £100 (£10,000+). These are your rights under the Late Payment of Commercial Debts Act 1998.
Absolutely. A kill fee protects you if a client cancels mid-project. Typically 25–50% of the total project value, it compensates you for time blocked, opportunity cost, and work already done. It's standard in creative industries and perfectly legal as long as it's agreed upfront.
For international clients, specify the currency, payment method (bank transfer details including SWIFT/IBAN), and which country's laws govern the contract. The UK Late Payment Act only applies to UK B2B transactions, so for international work, include explicit late payment terms in your contract.
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