Web developer invoice template

How do web developers usually invoice?

Web developers invoice by the sprint or by the month for ongoing work, listing the days or hours with the features delivered, and fixed fees per milestone for defined builds with a deposit of around 30%. Agencies that subcontract pay on 30 day terms and need their project code on the invoice. Retainers for support and small changes are invoiced monthly in advance with an hours allowance.

Web developers 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 web developer put on an invoice?

Beyond the legal basics, web developers should:

• List the sprint or milestone and the features delivered, not just a day count.
• Keep bug fixes and out-of-scope work on separate lines so scope creep is visible.
• Quote the agency's project code or the client's PO number.
• State that code and deployments are handed over on payment, and keep access until then.

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 web developers 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 web developers 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.