Late Fee Wording on an Invoice: Clauses You Can Copy (EU, UK, US)

A late fee only works if two things are true: the client agreed to it before the work started, and it's written clearly enough that nobody can argue about what it means. Most freelancers get one of those wrong. Either the fee appears for the first time on an overdue invoice, or the wording is so vague ("late payments may be subject to fees") that it has no practical effect.

This guide gives you wording for contracts, invoices and reminders, adapted to the EU, UK and US, and explains when to use it.

It's general information, not legal advice. For large contracts, have a lawyer review your terms.

First, the rules that make a late fee stick

1. Agree it up front. Put it in the contract or terms the client accepts before work begins. An invoice alone is weak, because the client never agreed to it.
2. Repeat it on every invoice. Not because it creates the obligation, but because it reminds the client the obligation exists.
3. Be specific. State the rate or amount, when it starts, and how it's calculated.
4. Stay within the law. In the EU and UK, statutory interest applies anyway. In the US, check your state's limits on interest and late fees.

Background on what's allowed in each region is in late payment fees by country.

Contract clauses

EU (any member state, business clients):

Invoices are payable within 14 days of the invoice date. If payment is late, the Client shall pay statutory interest at the rate set by applicable law implementing Directive 2011/7/EU (at least the ECB reference rate plus 8 percentage points) from the day after the due date, together with fixed compensation for recovery costs of at least €40 per invoice.

France (add to the EU clause):

Late payment penalties: ECB refinancing rate plus 10 percentage points. Fixed indemnity for recovery costs: €40 (Articles L441-10 and D441-5 of the Commercial Code).

UK (business clients):

Invoices are payable within 30 days of the invoice date. If payment is late, the Supplier is entitled to claim interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998, currently interest at 8% above the Bank of England base rate.

US (check your state's limits first):

Invoices are due within 15 days of the invoice date. Any balance unpaid after the due date will accrue a late charge of 1.5% per month (or the maximum rate permitted by law, if lower) until paid. The Client will also reimburse reasonable costs of collection.

The 1.5% per month figure is common in US contracts, but it isn't a legal standard. Some states cap rates below that. If in doubt, use a flat fee or a lower rate.

Flat fee alternative (US):

A late fee of $50 will be added to any invoice that remains unpaid 15 days after the due date.

Invoice wording

Keep it to one or two lines near the payment details.

EU:

Payment due by 2 April 2026. Late payments incur statutory interest and €40 fixed compensation under Directive 2011/7/EU.

UK:

Payment due by 2 April 2026. We reserve the right to claim interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.

US:

Payment due by April 2, 2026. Late balances accrue 1.5% per month as per our agreement of February 3, 2026.

Notice what's missing: threats, capital letters, or "FINAL WARNING". The line does its job by being there.

Mentioning the fee in a reminder

The first reminder after the due date shouldn't mention fees at all. Most late invoices are oversights, and opening with a penalty makes the client defensive. Use the fee later, once the invoice is clearly overdue.

Second or third reminder (about 14 to 30 days late):

Hi Alex, I'm following up on invoice INV-1042 for €2,400, which was due on 2 April. Under our terms, late payments incur statutory interest and €40 compensation. I'd prefer not to add those, so if it's paid by Friday 25 April I'll leave the invoice at €2,400. Here's the payment link: [link].

Applying the fee:

Hi Alex, invoice INV-1042 for €2,400 is now 45 days overdue. As set out in our contract, I've attached an updated statement including statutory interest of €[amount] and €40 fixed compensation, for a total of €[total]. Please let me know if there's an issue I'm not aware of.

The "waive if paid by" approach often gets old invoices closed faster than actually charging the fee. More on that in using late payment law without burning clients.

How to calculate statutory interest

The formula is simple: amount × annual rate × days late ÷ 365.

Example: a €2,400 invoice, 45 days late, at an annual rate of 10.40% (the Irish statutory rate from 1 July 2026, per Ireland's Department of Enterprise): €2,400 × 0.104 × 45 ÷ 365 ≈ €30.77, plus €40 compensation.

You can check the figure with our EU late payment interest calculator. For the UK method, see how to charge statutory interest.

Mistakes that weaken a late fee

• Introducing it after the fact. A fee added to an overdue invoice without prior agreement is easy to dispute.
• Vague wording. "Fees may apply" doesn't say what, when or how much.
• Excessive rates. A fee far above the legal limit or the real cost may be unenforceable as a penalty, especially in the US.
• Inconsistency. Charging some clients and not others, without a reason, makes your terms look negotiable.
• Applying it to consumers. The EU and UK statutory rules are for business-to-business payments. Consumer contracts follow different rules.

FAQ

Can I add a late fee to an invoice that's already overdue?

In the EU and UK, statutory interest and compensation apply to B2B debts even if not agreed. In the US, generally only if the contract allows it.

What is a reasonable late fee?

In the EU, the statutory minimum is €40 plus interest at the ECB reference rate plus 8 points. In the UK, £40 to £100 plus 8% above base rate. In the US, many contracts use 1 to 1.5% per month, subject to state limits.

Should I always charge the late fee?

Not necessarily. Having it in your terms gives you leverage. Using it is a judgment call based on the client and the relationship.

Where should the late fee go on the invoice?

Near the due date and payment details, in one plain sentence.

Let reminders do the work first

DueChat sends polite reminders in your name at 7, 14 and 30 days overdue, with your payment link, and stops when the client pays. You choose if and when the tone gets firmer. €19/month or €190/year after a 30-day trial. See how reminders work.