UX designer invoice template

How do UX designers usually invoice?

UX designers invoice by phase for discovery, design and testing work, with a deposit of around 30% on new engagements and the balance on delivery of each phase's findings or prototype, on 30 day terms. Contract UX work through agencies or in-house teams is invoiced monthly from a timesheet. Participant incentives and research tools are recharged at cost.

UX designers in this example give the customer 30 days to pay, after a 30% deposit taken before the work starts. Hourly rates run from £50 to £110. A full day is typically £400 to £800.

What should a UX designer put on an invoice?

Beyond the legal basics, UX designers should:

• Invoice per phase and name the deliverable (findings deck, prototype, test report).
• Recharge participant incentives and tool costs at cost on separate lines.
• For contract roles, reference the contract and attach the approved timesheet.
• State the number of iterations included in the design phase.

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 UX designers 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, digital and IT services are standard rated at 20% for UK clients; services to business clients outside the UK are generally outside the scope of UK VAT, so note that on the invoice and charge none.

On the Flat Rate Scheme the sector for UX designers is usually “Computer and IT consultancy or data processing” at 14.5% 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.