Hourly invoice template (UK)

Billing by the hour is simple on paper — hours times rate — but clients pay faster when they can see what the hours were for and when they were worked. This template puts the period on every line and leaves room to point to a time log.

The sample is a VAT-registered web developer billing half a month's work. It suits developers, designers, tutors, bookkeepers and anyone who sells time. Fill it in online and download a PDF. No account needed. It opens in the free UK invoice generator, ready to fill in.

What's on this template

• Your name, trading name and VAT number (if registered).
• The client company and contact.
• Invoice number, date and due date.
• Hours and rate per line, with the dates or task.
• VAT at 20% when you charge it, and the total.
• Bank details, and a note pointing to the time log.

Example line items

Tracking and rounding time

Agree up front how you round: to the nearest 15 minutes is common, and say so on the invoice ("Hours are billed in 15-minute steps"). Keep a simple log of date, task and time so you can answer questions quickly. If you work on several projects for one client, give each its own line.

Billing cycle and terms

Weekly or fortnightly invoices suit short contracts; monthly suits ongoing work. Put the period on the invoice and state the due date — 14 days is common. If a business client pays late, statutory interest and compensation apply; see late payment interest.

VAT

If you're not VAT registered, leave VAT off entirely: choose Not VAT registered and the VAT line disappears. Once your VAT-taxable turnover passes £90,000, you must register and charge VAT on your hours. See what a VAT invoice must include.

Setting your hourly rate

Work back from what you need to earn. Start with the income you want in a year, add your business costs, then divide by the hours you can realistically bill: not every working hour is billable once you allow for admin, sales and holidays. Many freelancers bill around 60–70% of the hours they work. If you're VAT registered, quote rates excluding VAT and make that clear to business clients.

Caps, estimates and overruns

Clients often want to know the likely total. Give an estimate in hours, and agree what happens if the work runs over: a cap, a check-in at 80% of the estimate, or a new quote. Show any agreed cap on the invoice ("36.5 hours of an estimated 40") so the client sees where the budget stands.

Minimum charges and call-outs

If you charge a minimum (one hour, half a day) or a call-out fee, say so in your terms and show it as its own line when it applies. Travel time can be billed too, if agreed, usually at the same or a lower rate.

Making it easy to pay

Bank transfer is the default in the UK: print the account name exactly as your bank holds it, the sort code (20-00-00) and the 8-digit account number, and ask customers to use the invoice number as the payment reference so you can match the money when it arrives. If you take card payments, add a payment link alongside the bank details. A short "Thank you for your business" in the notes costs nothing and reads better than a bare demand for payment.

Common mistakes

• "Work done — 36.5 hours" with no dates or tasks.
• Rounding up without saying so.
• Different rates mixed on one line.
• No time log when a client asks what the hours covered.