Creators are paid by brands, agencies and platforms, and the money does not always arrive when expected. Many deals are agreed by email, with a fee and a rough timeline, and the invoice is an afterthought. GOV.UK publishes guidance on two linked topics: what an invoice must include and what a business can do when another business pays late. This guide summarises that guidance for freelance creators who invoice businesses. It describes what GOV.UK says, rather than giving legal advice, and rules and rates change.
What does an invoice have to include?
GOV.UK’s guide to invoicing and taking payment from customers says a business must give a customer an invoice by law if both the seller and the customer are registered for VAT, which it describes as a business to business transaction. It adds that an invoice is not the same as a receipt, which is an acknowledgement of payment. Where an invoice is not legally required, issuing one can still give both sides a record.
The overview says an invoice must state how much the customer needs to pay and when. The page on invoice contents says it must include:
- a unique identification number;
- the seller’s company name, address and contact information;
- the name and address of the customer being invoiced;
- a clear description of what is being charged for;
- the date the goods or service were provided (the supply date);
- the date of the invoice;
- the amount or amounts being charged;
- the VAT amount, if applicable; and
- the total amount owed.
What extra details do sole traders need on an invoice?
The same page adds requirements for sole traders, a category that includes many freelance creators. A sole trader’s invoice must also include the trader’s name and any business name being used, and an address where legal documents can be delivered if a business name is used. For limited companies, the page says the full company name must appear as it does on the certificate of incorporation, and that if the names of directors are put on invoices, the names of all directors must be included. It also says VAT invoices are required if both the seller and the customer are VAT registered, and that they include more information than non-VAT invoices.
Our guide on UK tax for creators explains why invoices also matter for tax: HMRC’s guidance says people who send a Self Assessment return need to keep records, and invoices are part of the picture.
When does a business payment become late?
GOV.UK’s guidance on late commercial payments says a business can claim interest and debt recovery costs if another business is late paying for goods or a service. It sets out the timing rules:
- If a payment date is agreed. It must usually be within 30 days for public authorities or 60 days for business transactions. The page says a longer period than 60 days can be agreed for business transactions, but it must be fair to both businesses.
- If no payment date is agreed. The law says the payment is late 30 days after either the customer gets the invoice, or the goods or service are delivered or provided (whichever is later).
The invoicing page repeats the second point from the supplier’s side: unless a payment date is agreed, the customer must pay within 30 days of getting the invoice or the goods or service. It also says a supplier can set their own payment terms, such as discounts for early payment and payment upfront.
For creators, this makes the written terms of a deal important. A brand agreement that sets a payment date, such as a number of days after the campaign goes live, becomes the date that counts. Our explainer on creator contracts lists payment terms among the clauses to read before signing, and the guide to setting rates for sponsored content explains how payment timing can be considered alongside the fee.
How is statutory interest worked out?
According to the GOV.UK page, the interest that can be charged when another business pays late is “statutory interest”, which is 8% plus the Bank of England base rate for business to business transactions. The page adds two conditions:
- A creator cannot claim statutory interest if there is a different rate of interest in a contract.
- The page says a lower interest rate cannot be used in a contract with public authorities.
GOV.UK gives a worked example. If a business were owed £1,000 and the Bank of England base rate were 0.5%, the annual statutory interest would be £85 (£1,000 × 0.085). Dividing by 365 gives about 23p a day, so after 50 days the interest would be £11.50. The page notes that a new invoice should be sent if the business decides to add interest to the money owed.
The example uses a base rate of 0.5%; the base rate on any given date is different, and the page links to the current rate. A creator calculating interest should use the rate in force for the period concerned.
What fixed sums can be added for recovery costs?
On top of interest, GOV.UK says a business can charge another business a fixed sum for the cost of recovering a late commercial payment. The amount depends on the size of the debt, and the page says it can be charged only once for each payment:
| Amount of debt | Fixed sum |
|---|---|
| Up to £999.99 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
The page says these amounts are set by late payment legislation. It also says a supplier can claim for reasonable costs each time they try to recover the debt. For the full rules, the page refers readers to a separate guide on recovering debt.
Does the right to charge interest have to be used?
No. GOV.UK’s invoicing guidance says a business has the right to charge interest for late payment “but you can choose not to”. Many creators weigh the relationship with a brand against the money. The pages describe the right but do not tell anyone whether to use it.
The page also mentions a “statutory demand”, which it says can be used to formally request payment of what is owed. That is a formal step, and anyone considering it should seek professional advice.
What should creators do before a payment goes late?
The GOV.UK pages describe rights after the fact. Several habits can make those rights easier to use, and they follow from the rules above:
- Agree a payment date in writing. Without an agreed date, the 30-day rule applies from the invoice or delivery date, whichever is later.
- Keep the invoice detailed. The required elements, such as a clear description and the supply date, also help show what was agreed and delivered.
- Check the contract for interest terms. A different rate of interest in a contract means statutory interest cannot be claimed.
- Send the invoice promptly. A late invoice can push back the date on which payment is treated as late.
- Keep records of requests. Dates of invoices, reminders and replies matter if a debt is ever pursued.
Platform payouts are different from direct brand invoices. They follow the platform’s own payment terms, which are described in its policies rather than in the GOV.UK pages used here. Our guide to how creators make money explains where payouts and brand fees sit in a creator’s income.
What about card payments and chargebacks?
Creators who sell directly to fans, for example merchandise or digital products, may take card payments. GOV.UK’s guidance on payment obligations also covers “chargebacks”. It explains that if a customer asks their credit or debit card issuer to reverse a transaction, the customer can reclaim the value of the transaction from the seller. The page says a chargeback can be made when the purchased item never arrived, when it was not as described or when the customer’s card was used without their permission. The seller can be charged up to 120 days after the transaction was debited, or from when the goods or services were due to be received.
The page adds that where a customer uses a PIN, the seller is only liable for a chargeback if the goods are faulty or not as described, and that for card-not-present transactions, such as online sales, the risk of chargeback is higher. It also notes that a business that takes a sum of money from a customer every time they use a service may need to be authorised by the Financial Conduct Authority, and that a business paid large amounts in cash may need to register for an anti-money laundering scheme. These points are separate from late payment between businesses, but they sit on the same GOV.UK page and are worth knowing for any creator who sells directly.
What are the limits of this guidance?
The pages cover business to business transactions in the UK. A creator working for a consumer, or for a client abroad, is in a different position that these pages do not describe. They also do not address disputes about quality, scope or whether the work was done: the late payment rules concern when payment is due and what can be charged if it is late. The amounts and rates quoted here come from the pages as read on 13 October 2026 and may change, so the current pages should be checked.
This article is general information based on published GOV.UK guidance. It is not legal, tax or financial advice. Take qualified advice before taking formal steps to recover a debt.
Sources: GOV.UK (Invoicing and taking payment from customers: overview); GOV.UK (Invoicing: invoices, what they must include); GOV.UK (Invoicing: payment obligations); GOV.UK (Late commercial payments: when a payment becomes late); GOV.UK (Late commercial payments: interest); GOV.UK (Late commercial payments: debt recovery costs)
