Illustrator invoice template

How do illustrators usually invoice?

Illustrators invoice per illustration with a fee that depends on size, complexity and, above all, the licence granted: a single-use editorial licence costs far less than packaging artwork used worldwide for five years. Half is invoiced on approval of roughs and half on delivery of final artwork. Publishers pay on 30 day terms and often need a purchase order number before they will process the invoice.

Illustrators in this example give the customer 30 days to pay, after a 50% deposit taken before the work starts. Hourly rates run from £35 to £75. A full day is typically £280 to £550.

What should a illustrator put on an invoice?

Beyond the legal basics, illustrators should:

• State the licence on the invoice: use, territory, duration, exclusivity, and that copyright stays with you.
• Price roughs and finals as stages and invoice 50% when roughs are approved.
• Quote the publisher's purchase order number; without it the invoice sits in a queue.
• List each illustration with its size or placement (full page, spot, cover).

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do illustrators charge VAT?

You only charge VAT once registered, which is compulsory when taxable turnover passes £90,000 in any rolling 12 months. Below that, show no VAT line and no VAT number. Once registered, this work is standard rated at 20%, including work for clients outside the UK in some cases, so check the place of supply rules for overseas clients.

On the Flat Rate Scheme the sector for illustrators is usually “Any other activity not listed elsewhere” at 12% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.