Invoice Legal

Invoice Terms and Conditions: What to Include + Free Templates

Q: What should be included in invoice terms and conditions?

Key clauses: payment terms (Net 14/30), late payment interest rate, collection costs, IP ownership transfer, dispute resolution, governing law, cancellation/kill fee, confidentiality, warranty disclaimer, and limitation of liability.

Q: Where should T&C appear on an invoice?

Abbreviated key terms in the invoice footer (payment terms, late fee rate). Link to full T&C on your website. Attach a T&C PDF on the first invoice to any new client.

Most freelancers skip invoice T&C — and it's an expensive mistake when disputes arise. Here's exactly what to include, two copy-paste templates, and where to put them on your invoice.

Why Invoice Terms and Conditions Matter

😬

Without T&C

Disputes with no contractual framework. No clear rules about late fees, IP ownership, or what happens if the project changes.

→

😌

With T&C

Rules defined upfront. Both parties know the payment deadline, late fee rate, and what happens if they dispute.

Many freelancers skip this — expensive mistake.Adding T&C to your invoice takes 15 minutes once. It can save you thousands in disputes.

What to Include in Invoice Terms and Conditions

Payment termsEssential

State Net 14, Net 30, or your specific due date. Example: "Payment due within 14 days of invoice date."

Late payment interest rateEssential

State the rate clearly. UK statutory rate: 8% above Bank of England base rate. EU: at least 8% above ECB rate. Example: "Late payments accrue interest at 8% per annum."

Collection costs

State that you can recover reasonable collection costs if you have to chase. EU Late Payment Directive allows a minimum €40 recovery fee.

IP/ownership transfer clauseEssential

"Full ownership and copyright of deliverables transfers to client upon receipt of full payment." Without this, you technically retain copyright.

Dispute resolution process

"Any disputes shall be resolved by good faith negotiation. If unresolved within 30 days, either party may pursue remedies under applicable law."

Governing lawEssential

Which country/state law applies. "This agreement is governed by the laws of England and Wales." Required in UK, strongly recommended everywhere.

Cancellation / kill fee

If client cancels a project mid-way: "If the client cancels after work has commenced, a kill fee of [X]% of the remaining project value is due."

Confidentiality

"Both parties agree to keep confidential information received in connection with this project."

Warranty disclaimer

"Services are provided as-is. No warranty is given that deliverables will be error-free beyond [X] days of delivery."

Limitation of liability

"Total liability shall not exceed the total fees paid under this invoice." Protects you from disproportionate claims.

Free T&C Templates

Short Version (1 paragraph — for invoice footer)

Payment due within [14/30] days of invoice date. Late payments accrue interest at 8% per annum from the due date. Full ownership of all deliverables transfers to client upon receipt of final payment. Any disputes are governed by the laws of [England and Wales / your jurisdiction].

Full Version (10 clauses — for attachment or website)

STANDARD TERMS AND CONDITIONS OF BUSINESS 1. PAYMENT TERMS Payment is due within [14/30] days of the invoice date unless otherwise agreed in writing. Late payment interest accrues at 8% per annum above the Bank of England base rate from the due date. 2. LATE PAYMENT CHARGES Where payment is not received by the due date, the client shall be liable for: (a) Interest at 8% above the Bank of England base rate (b) Reasonable debt recovery costs including but not limited to a minimum compensation fee of £40/€40 3. INTELLECTUAL PROPERTY All intellectual property rights in the deliverables shall remain with [Your Name / Company] until full payment is received, at which point full ownership transfers to the client. 4. CANCELLATION If the client cancels a project after work has commenced, a kill fee of 50% of the remaining project value shall be payable within 14 days of cancellation notice. 5. CONFIDENTIALITY Both parties agree to keep confidential any information received in connection with this engagement and not to disclose it to third parties without prior written consent. 6. WARRANTY [Your Name] warrants that services will be performed with reasonable skill and care. No other warranty is given. Any defects must be reported within 30 days of delivery. 7. LIMITATION OF LIABILITY [Your Name]'s total liability under or in connection with these terms shall not exceed the total fees paid by the client under the relevant invoice. 8. DISPUTE RESOLUTION Any dispute shall first be referred to good faith negotiation. If unresolved within 30 days, either party may pursue available remedies under the governing law. 9. GOVERNING LAW These terms are governed by the laws of [England and Wales / your jurisdiction]. Both parties submit to the exclusive jurisdiction of the courts of [England and Wales / your jurisdiction]. 10. ENTIRE AGREEMENT These terms, together with the invoice and any engagement letter, constitute the entire agreement between the parties regarding the services described.

Where to Put T&C on Your Invoice

📄

Invoice footer (recommended)

Include the short version — payment terms, late fee rate, and governing law. 2–3 lines is fine.

🔗

Link to full T&C on your website

"Full terms at yoursite.com/terms" — clients can read the detail without cluttering the invoice.

📎

Attach T&C PDF on first invoice to new client

For new clients, attach your full T&C as a PDF on the first invoice. This establishes the contractual framework before disputes arise.

Country-Specific Requirements

🇪🇺 European Union

• Late Payment Directive (2011/7/EU): MUST state interest applies
• Minimum €40 compensation fee on commercial debts
• Max payment term for public authorities: 30 days
• Interest rate: at least 8% above ECB reference rate

🇬🇧 United Kingdom

• Late Payment of Commercial Debts (Interest) Act 1998
• Statutory rate: 8% above Bank of England base rate
• Must state governing law (England and Wales / Scotland)
• Small claims: Letter Before Claim required first

T&C + Automated Chasing = Freelancer Superpower

Add T&C to your invoices, then let Chaser send automated reminders at day 3, 7, 14, and 30. You'll get paid faster and have legal protection when you don't.

Start Free →

Frequently Asked Questions

Do I need terms and conditions on my invoice?

Not legally required in most countries, but strongly recommended. Without T&C you have no contractual framework if a dispute arises. At minimum, state your payment terms, late fee policy, and governing law.

What should be included in invoice terms and conditions?

Key clauses: payment terms, late payment interest rate, collection costs, IP ownership transfer, dispute resolution, governing law, cancellation/kill fee, confidentiality, warranty disclaimer, and limitation of liability.

Where should T&C appear on an invoice?

Abbreviated key terms in the invoice footer. Link to full T&C on your website. Attach a T&C PDF on the first invoice to any new client.

Can I charge interest on a late invoice?

Yes, in most countries. In the UK, statutory interest is 8% above the Bank of England base rate under the Late Payment of Commercial Debts Act. In the EU, at least 8% above the ECB reference rate under the Late Payment Directive.

← More invoicing guides