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Invoice wording

VAT, payment terms and late payment wording for UK invoices

Clear wording helps customers pay the right amount, use the right reference, and understand when the invoice is due. This guide gives simple examples you can adapt for your trade business.

Updated 25 August 2026 By the SayInvoice editorial team Payment terms VAT wording 4 minute read
Quick answer

Use short, clear payment terms. Show VAT only if your business is VAT registered. Add bank details and a payment reference so the customer can pay without chasing you for information.

Payment terms examples

Your payment terms should be easy to understand. Avoid vague wording like "pay soon" or "payment on receipt" if you actually want payment within a set number of days.

  • Payment due within 7 days of invoice date.
  • Payment due within 14 days. Please use the invoice number as the payment reference.
  • Payment by bank transfer to the account details shown below.

VAT wording

If you are VAT registered, a VAT invoice needs more than a VAT number and one total. Depending on the invoice type, the required details include dates, supplier and customer details, descriptions, net amounts, VAT rates and VAT totals. Use the official GOV.UK VAT-invoice checklist for the complete current requirements. If you are not VAT registered, do not charge VAT. SayInvoice can put a saved VAT preference into an editable draft, but you must check the rate, figures and wording. Businesses registered for VAT should also follow the GOV.UK VAT record guidance.

Example wording VAT charged at [applicable rate]. VAT number: [your registered VAT number].

Late payment notes

A late payment note does not need to sound aggressive. The goal is to make the expectation clear before payment becomes overdue.

Example for qualifying business-to-business work: Please pay this invoice within the agreed term. Statutory interest and debt-recovery costs may apply to qualifying late commercial debts.

Statutory late-payment interest and recovery costs do not apply to every invoice, including ordinary consumer debts. Check the GOV.UK late commercial payment guidance before using this wording, and get professional advice if you are unsure.

Choosing the right payment terms

Shorter terms are common for call-outs, repairs, and small jobs. Longer terms might make sense for bigger business customers, landlords, or agreed commercial work. The important thing is to choose terms you are prepared to follow up on.

  • Choose a due date that matches the terms agreed for that job.
  • Use the same agreed term consistently across the invoice and related messages.
  • Payment on completion can work for simple jobs, but the invoice should still show a due date.
  • Deposits should explain what the upfront payment covers.

Bank details and payment references

Make payment easy. Include the account name, sort code, account number, and a reference instruction. If the customer pays with the invoice number as the reference, it is much easier to match the payment later.

Example wording Please pay by bank transfer using invoice SI-104 as the payment reference.

How to follow up clearly

Keep each follow-up polite and practical, and refer back to the due date, total and invoice reference.

  • Before due date: send the invoice promptly and make payment instructions clear.
  • On due date: send a short reminder if that fits the agreed terms and relationship.
  • After due date: refer back to the invoice number, amount, and due date.
  • For repeat problems: tighten your terms, ask for deposits, or pause further work until payment clears.

VAT details that can create questions

VAT confusion can create unnecessary questions. If you charge VAT, show the VAT amount and your VAT number. If you do not charge VAT, keep the invoice simple and do not add a VAT line. Customers should be able to understand the total without guessing.

If your VAT situation changes, update your saved invoice settings before creating new documents.

Frequently asked questions

Should I put late payment wording on every invoice?

If you use late-payment wording, include it before payment becomes overdue and keep it calm, accurate and appropriate to the customer and contract.

Can I use different terms for different customers?

Yes, when the terms are agreed and appropriate for that job. The invoice should show the actual due date or payment term, and it should match any contract or prior agreement.

Do I need to mention VAT if I am not VAT registered?

Do not charge VAT if you are not VAT registered. If customers regularly ask, you can add a simple note explaining that VAT is not charged.

How SayInvoice helps

Store your payment terms, bank details, VAT preference, and standard notes once. Every time you create a quote or invoice, SayInvoice puts those saved details into the editable draft for you to review. It does not submit VAT or CIS returns, make MTD submissions, file anything with HMRC, or create structured e-invoices. A SayInvoice PDF is a document for you to review and share, not a structured e-invoice.

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