A practical guide to choosing clear payment terms, showing due dates, using bank-transfer references and following up unpaid invoices.
For UK service businesses that send quotes, invoices and bank-transfer payment instructions to customers.
General information only. Not legal, tax, accounting or financial advice.
PAYMENT TERMS
Payment terms explain when and how your customer should pay an invoice.
For a service business, clear payment terms usually answer four questions:
Clear payment terms reduce confusion, make reminders easier and help you separate payment reported from payment confirmed.
See an example UK invoice with bank-transfer detailsCOMMON TERMS
Choose terms that match the job, customer relationship, contract and cash-flow needs.
| Payment term | Meaning | When it fits |
|---|---|---|
| Due on receipt | Customer should pay when they receive the invoice | Small call-outs, urgent work, final invoices |
| 7 days | Payment due 7 days after invoice date | Small service jobs, domestic customers |
| 14 days | Payment due 14 days after invoice date | Repeat customers, mid-size jobs |
| 30 days | Payment due 30 days after invoice date | Business customers, agreed trade terms |
| Upfront deposit | Part-payment before work starts | Larger jobs, materials, booked service slots |
Make the due date visible on the invoice instead of relying only on wording such as Net 14. GOV.UK says businesses can set their own payment terms, and if no payment date is agreed, payment is generally due within 30 days after the invoice is received or after goods or services are supplied, if that is later.
INVOICE DETAILS
A payment terms section on the invoice should be easy to find.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Keep this detail visible so the customer can pay and your business can match the payment to the right invoice.
Do not rely only on bank details. Add a clear invoice number and payment reference so the customer and business can match the bank transfer to the right invoice.
GOV.UK lists core invoice fields such as a unique identification number, business and customer details, service description, supply date, invoice date, amounts, VAT if applicable and total owed.
Open the UK invoice checklistBANK TRANSFER REFERENCES
Good payment references are short, unique and easy to copy.
| Scenario | Example reference |
|---|---|
| Standard invoice | INV-1042 |
| Customer name + invoice | SMITH-INV1042 |
| Job number + invoice | JOB-238-INV1042 |
| Deposit invoice | DEP-INV1042 |
| Final invoice | FINAL-INV1042 |
Avoid vague references such as payment, invoice, thanks or only the customer's first name. They make reconciliation harder when multiple payments arrive on the same day.
Explore bank-transfer payment trackingOVERDUE LOGIC
Payment is overdue only after the due date has passed and the business has not confirmed receipt of payment.
An invoice becomes overdue when the payment due date has passed and the business has not confirmed receipt of payment.
For bank transfers, do not mark the invoice as paid only because the customer says they have paid. First check the bank account, then confirm the payment in your workflow.
For business-to-business late commercial payments, GOV.UK says agreed payment dates are usually within 30 days for public authorities or 60 days for business transactions, and longer periods for business transactions must be fair to both businesses. If no payment date is agreed, late payment is generally counted 30 days after the customer receives the invoice or after the service or goods are delivered, if that is later.
REMINDER WORDING
Keep reminder wording short, specific and easy for the customer to act on.
Subject
Payment reminder for invoice {{invoice_number}}
Email body
Hi {{customer_name}},
This is a friendly reminder that invoice {{invoice_number}} for {{amount_due}} is due on {{due_date}}.
Please use payment reference {{payment_reference}} when making the bank transfer.
Thank you,
{{business_name}}
Subject
Invoice {{invoice_number}} is now overdue
Email body
Hi {{customer_name}},
Our records show that invoice {{invoice_number}} for {{amount_due}} was due on {{due_date}} and is still awaiting payment.
If you have already paid, please let us know the payment date and reference so we can check it against our bank account.
Thank you,
{{business_name}}
LATE PAYMENT COSTS
Use extra caution before adding interest, fees or recovery costs.
For business-to-business invoices, UK late payment rules may allow interest and debt recovery costs in some situations.
This is a legal and commercial area, so check current GOV.UK guidance or speak to a qualified adviser before adding interest, fees or recovery costs to an invoice.
GOV.UK explains that statutory interest for late commercial payments is 8% plus the Bank of England base rate for business-to-business transactions, unless a different contractual interest rate applies. It also says to send a new invoice if interest is added.
GOV.UK also lists fixed debt recovery cost amounts for late commercial payments: £40 for debts up to £999.99, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more.
JOQIVA WORKFLOW
Joqiva keeps payment terms connected to the invoice workflow without processing customer payments.
Create a quote or invoice from job details
Add payment terms and a due date
Show bank-transfer details and a payment reference
Let the customer report that they have paid
Keep reported payment separate from confirmed payment
Follow up invoices that are unpaid or overdue
Joqiva does not process customer payments and does not hold customer money. Customers pay directly into the business bank account.
FAQ
Common questions about invoice payment terms, due dates, bank-transfer references and payment follow-up.
Many service businesses use terms such as due on receipt, 7 days, 14 days or 30 days. The right term depends on the job, customer, contract and cash-flow needs. The due date should be shown clearly on the invoice.
No. You can agree your own payment terms. If no payment date is agreed, GOV.UK guidance says payment is generally due within 30 days after the customer receives the invoice or after the goods or service are supplied, if that is later.
Usually yes. A clear reference such as INV-1042 helps match a bank transfer to the correct invoice.
No. Joqiva can record that a customer reported a payment, but the business should check its own bank account before confirming that the invoice is paid.
Possibly, especially for business-to-business late commercial payments, but you should check current GOV.UK guidance or speak to a qualified adviser before adding interest or recovery costs.
RELATED RESOURCES
Related pages for building a complete quote, invoice and payment follow-up workflow.
Check required and practical invoice fields before sending.
Review how due date, reference and payment reporting appear on an invoice.
Copy wording for pre-due, overdue and payment-reported follow-ups.
Review details
This resource is general information only. It is not legal, tax, accounting or financial advice. You should check the current GOV.UK guidance or speak to a qualified adviser for your specific situation.
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