Payment terms for tradespeople: 7, 14 or 30 days?

Seven, 14 and 30-day payment terms are all used by UK trade businesses. The best choice is the shortest fair period that suits the customer and the amount of labour or materials you are carrying. Whatever you choose, agree it before work starts and put an exact due date on the invoice.

In practice: payment on completion or within 7 days can suit small domestic jobs. Fourteen days gives a household or small business more room. Thirty days is common in business-to-business work, especially where invoices go through an accounts process. Larger jobs are usually safer with a deposit or stage payments than one long wait at the end.

Those are practical starting points, not legal rules. Your customer type, contract and cash position matter.

When 7-day terms make sense

Seven days can work well when the job is complete, the customer is the person who approved the work and there is no complicated invoice process. It gives enough time for a bank transfer without leaving a sole trader funding the work for a month.

For a small repair, payment on completion may be clearer still. Tell the customer before the visit, put it on the quote or booking confirmation, then repeat it on the invoice.

Do not write seven days on the invoice if the customer was told 30 days before the job. The term needs to be agreed, not introduced after the work is finished.

When 14-day terms make sense

Fourteen days can be a sensible middle ground for larger domestic work and smaller commercial customers. It gives the customer time to check the invoice and arrange payment without forcing you to carry the cost for a full month.

If there may be a snagging visit, decide whether the whole balance is due at practical completion or whether a small, clearly defined amount is held until an agreed item is finished. Do not leave "snagging" undefined as a reason for the whole invoice to remain unpaid.

When 30-day terms make sense

Thirty-day terms are common when you invoice another business, a main contractor, managing agent or organisation with an accounts department. Before accepting them, understand how the customer counts the period. It may run from the invoice date, the end of the month or approval through a payment portal.

Ask for the purchase order, invoice address, contact name and submission method before starting. A 30-day term can turn into a much longer wait when the invoice is sent to the wrong place.

Domestic and business customers are different

You can agree payment terms with either type of customer, but the rules on late payment are not identical.

For business-to-business work, the government says that if no payment date has been agreed, payment normally becomes late 30 days after the customer receives the invoice or the goods or service, whichever is later. Agreed terms are usually limited to 60 days for business transactions unless a longer period is fair to both businesses. Read the GOV.UK guidance on late commercial payments.

The statutory right to add interest and fixed recovery compensation under the Late Payment of Commercial Debts rules applies to commercial debts. It does not apply in the same way to a homeowner buying work for private use. For domestic work, your written contract and consumer law are central, so the terms must be clear and fair.

Write a due date, not just a number of days

"Payment within 14 days" can still cause an argument about when the clock started. Put both the term and the date on the invoice.

Payment term: payment is due within 14 calendar days of the invoice date.
Invoice date: 10 September 2026.
Payment due: 24 September 2026.
Method: bank transfer using the invoice number as the payment reference.

The dates above are an illustrative example. Use the date produced by the term you have actually agreed.

What to agree before work starts

• the deposit or advance payment, if any;

• the stage or date that triggers each invoice;

• the number of calendar days allowed for payment;

• the accepted payment method;

• the person or department that must receive the invoice;

• how a genuine invoice query will be raised and resolved;

• what happens if payment is late.

Government guidance confirms that a business can set its own payment terms, including payment in advance, but the terms need to be agreed. See GOV.UK guidance on payment obligations.

Do not leave a large job unpaid until the end

A 30-day term is much harder to carry when the invoice includes weeks of labour and thousands of pounds of materials. Break a longer contract into payments linked to clear events, for example:

1. an advance payment before job-specific materials are ordered;

2. a stage payment after an agreed phase is complete;

3. a further stage after installation or second fix;

4. the final balance when the quoted work is complete.

Each trigger should be objective enough for both sides to recognise. "When most of the work is done" is weak. "After first fix is complete and before plastering starts" is clearer.

Read how to set a fair deposit or advance payment before writing a blanket non-refundable term.

Send the invoice promptly

A payment term cannot start until the customer has the invoice or the agreed trigger has occurred. Send the invoice when the stage or job is complete. Include the quote or purchase-order reference, a clear description, the amount, the due date and correct bank details.

The government lists the information a UK invoice should contain. Use the official invoice checklist, then compare it with the TradePilot guide to a valid invoice for tradespeople.

What to do when the due date passes

Start by checking the basics. Was the invoice sent to the right person? Did it include the purchase order? Is the amount or scope disputed? If the invoice is correct, follow a consistent written process.

1. Send a short reminder on or just after the due date.

2. If there is no answer, send a firmer reminder that repeats the amount and original due date.

3. For a commercial debt, decide whether to claim statutory interest and recovery costs.

4. If payment still does not arrive, follow a proper escalation route and take advice before beginning a claim.

The unpaid invoice guide explains the process. The late-payment letter templates and commercial interest calculator provide the wording and calculation.

TradePilot shows which invoices are overdue and prepares a reminder in the tone you choose. You check the message and send it by WhatsApp, text or email. TradePilot does not send reminders automatically and does not mark invoices paid from a bank feed. See how TradePilot handles invoices and payment reminders.

Written by Chris, founder of TradePilot. This guide is general information, not legal advice. Payment and late-payment rights depend on the contract and whether the customer is acting as a consumer or a business.