Late payment law
Invoice payment terms in the UK: 30 days, net 30, end of month and what the law allows
Which payment terms to write on a UK invoice: the 30-day default, the 60-day rule between businesses, public sector terms, 'net 30' and 'EOM' wording, early payment discounts and examples.
By the Nemexio team · · 6 min read
The legal default
Under the Late Payment of Commercial Debts (Interest) Act 1998, if you and your customer have not agreed a payment date, payment is due 30 days after the customer receives the invoice or the goods or services, whichever is later [1].
Once the payment is late, you can claim statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt [1].
Agreed terms: up to 60 days, and beyond
Businesses are free to agree a payment period. The Late Payment of Commercial Debts Regulations 2013 limit periods over 60 days: they are only valid if they are not grossly unfair to the supplier [2]. Public authorities must pay within 30 days unless a different period has been agreed and is justified [1].
The government has consulted on tighter rules, including a firm cap on payment terms. Until new legislation is in force, the rules above apply.
Common wording and what it means
- Due on receipt: payable as soon as the invoice is received. Legally clear but often ignored in practice.
- Net 7 / Net 14 / Net 30: payable within 7, 14 or 30 days of the invoice date.
- 30 days EOM (end of month): payable 30 days after the end of the month of the invoice. An invoice dated 3 November is due 31 December.
- 2/10 net 30: 2% discount if paid within 10 days, otherwise full amount within 30 days.
- Stage payments: part paid on order, part on delivery, the balance on completion.
Choosing your terms
- Match your own costs: if you pay suppliers and staff monthly, 14 or 30 days keeps cash flow predictable.
- Be stricter for new customers, larger jobs and one-off work: ask for a deposit.
- Put the terms in the quote or contract, not just on the invoice. Terms first seen on the invoice can be disputed.
- State how statutory interest applies after the due date, factually and without threats.
What to write on the invoice
Payment terms: 30 days from the invoice date. Payment due by 5 December 2026. Pay by bank transfer or with the secure payment link. Late payments may incur statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 [1].
A clear due date also makes reminders easier: the first one can go out the day after it passes.
Frequently asked questions
What are standard payment terms in the UK?
30 days is the most common term, and it is also the legal default when nothing is agreed [1].
Can I set 7-day payment terms?
Yes. Any period can be agreed between businesses. Shorter terms simply need to be agreed in your quote or contract.
Are 90-day payment terms legal?
Between businesses, terms over 60 days are only valid if they are not grossly unfair to the supplier [2].
What does net 30 mean?
The full amount is due within 30 days of the invoice date. Writing the exact due date avoids any confusion.
Put this into practice
Sources
- [1]GOV.UK — Late commercial payments: charging interest and debt recovery
- [2]legislation.gov.uk — The Late Payment of Commercial Debts Regulations 2013 (SI 2013/395)
- [3]GOV.UK — Invoicing and taking payment from customers
Sources checked on 6 November 2026. This article is general information, not legal advice. For a specific contract or dispute, take independent advice.