Revised: 2007-10-04

Getting your money

When a freelance gets paid is something to sort out in initial negotiation over a job. Many companies have a particular date each month on which they send out payments, and freelances should be paid on the first such date after publication or (depending on what was agreed with the client) after delivery of the work, or after receipt of your invoice.

Fundamental advice to freelances: invoicing

Unless the client you work for operates a system of "self-billing" (see below), invoice promptly for work done. Without an invoice, a client may not even know that payment is due, let alone pay you. On your side, efficient invoicing makes record-keeping easier.

Invoices may be sent to the publication along with delivered work, or at some other point agreed with the client. Remember that any invoice must include at least:

• its effective date;
• a brief description of the work, or rather licence to use work, the freelance is invoicing for;
• the amount;
• the freelance's address;
• and any other information which the client says they require to make payment, such as BACS data or an order number (see below).

Invoice early and invoice often. If the client is late paying, you are likely entitled to at least £40 compensation on each invoice.

The freelance should state on invoices when they expect to be paid (within 30 days, unless otherwise and fairly agreed) and be prepared to remind the client as soon as payment seems to be late. Make it clear that late payment will incur interest and compensation. The UK government suggests this form of words on invoices:

We understand and will exercise our statutory right to interest and compensation for debt recovery costs under the late payment legislation if we are not paid according to agreed credit terms.

See Late payment for advice on what to do if the client ignores this.

Some organisations, or departments within them, allocate order numbers to jobs and will only pay on invoices that quote them. So if necessary make sure you get an order or purchase number and quote it.

Many organisations will ask you for your bank details so that payment can be made straight into your account through the BACS system. It's quicker than a cheque and you will be notified when the money is coming in.

If a job is spread over a long period (this is common in the book trade, for example) try to arrange a system of regular invoicing, either at fixed intervals, such as every month, or at different stages of production, such as a third up front on agreement, a third half-way through, and a third on completion.

Self-billing

Many publications operate a "self-billing" system, in which they pay without needing an invoice. The disadvantage of this system is that it makes it much easier for the client to set the rate for the job if you have not made a clear agreement in advance. If you are paid in this way, be sure to keep a clear record of every piece of work done and the agreed rate, including what rights you licensed to the client.

Some companies that operate self-billing helpfully send freelances itemised accounts, showing what has been paid for each contribution. Freelance contributors should check these against their own records and, if necessary, make sure any mistakes are rectified.

Statements

Some freelances find it helpful to send a statement to a client at the end of the month indicating what they are owed and for what: that is, a list of invoices still due, giving for each:

• the date of the invoice;
• the invoice number, if used;
• a brief description of the work - the slugline of an article for example;
• the amount of the invoice

The freelance can then use the statement as a basis for sorting out any under-payment. This practice is especially useful where there are several payments due for different items.

Payment on publication

Where long lead times before publication are involved (for example in books and some monthly magazines) or where the date of publication is left uncertain, freelances should secure payment within a month of delivery of the work.

It may, sometimes, be reasonable for someone starting out in journalism or in a new field to agree to do one article on the basis that it will be used and paid for if it is suitable. Some well-known writers may choose to write first and hawk the result around, specifying "if you are interested in using this, please contact me within seven days to discuss terms".

In other cases, working without a commission is daft.

Generally useful links: