Start for free
Language: EN

Accounting and invoicing for IT freelancers

Hourly rate, day rate, maintenance contract: IT freelancers bill by time and for clients in several countries. Saldiqo records your hours, writes the invoice from them and knows the reverse charge for clients in the EU.

Updated:

What comes up for IT freelancers

Billing by time

Hours and days have to go to the project, the client and the invoice. If you carry the time in your head, the month-end invoice is imprecise.

Recurring amounts

Maintenance and support contracts, hosting and licences run monthly or yearly. The invoice is the same every time.

Clients in several countries

A startup in Berlin, an agency in Vienna, a group in Amsterdam: different rules apply per client and country, and the invoice has to show that.

Subscriptions and tools

Cloud, developer tools, software, domains: running costs are many small invoices, often in foreign currency.

How Saldiqo helps

  • Time tracking with start and stopTime runs along, you assign it to client and project. The invoice line comes from it.
  • Invoice from recorded timeYou bundle open time per client into one invoice with a click.
  • Maintenance contract as a recurring invoiceMonthly flat fees and yearly licences are created by a recurring invoice on a fixed date.
  • Tax type for abroadFor businesses in other EU countries you choose reverse charge, and Saldiqo writes the note on the invoice. For other cases you clear with your tax adviser which tax type fits.
  • Receipts and paymentsPhotograph the receipt with your phone, upload the bank statement, and Saldiqo matches payments to invoices.

Typical invoice lines

Examples that often appear on invoices in this industry. You set the prices yourself.

  • Software development, 18 hours
  • Code review and architecture consulting, 4 hours
  • On-call retainer, October
  • Maintenance contract, October
  • Re-invoiced hosting and licences as per receipt
  • Travel costs at cost

Tax and invoicing in the UK

What applies to invoices in the UK, in short. As of October 2026.

VAT
Standard rate 20 %, reduced rate 5 % and zero rate 0 %. Saldiqo calculates each invoice line with the rate you pick.
VAT registration
You must register once your taxable turnover passes £90,000 over any 12 months, or you expect to pass it within the next 30 days. You can deregister below £88,000. Until you are registered, your invoices show no VAT, and Saldiqo adds up your 12-month turnover for you.
What goes on an invoice
If you are VAT registered: your VAT number, the tax point, unit prices and the VAT total in pounds. A limited company shows its registered name on every invoice, and its company number, registered office and part of the UK on letters, order forms and the website.
E-invoicing
There is no mandate today. From April 2029 e-invoicing is planned for all B2B and B2G sales that carry VAT, through Peppol. The exact date and standard are not yet in law, and the government’s roadmap follows with the Budget on 28 October 2026.
VAT returns
VAT returns go to HMRC through Making Tax Digital, usually quarterly, due one month and seven days after the period. Saldiqo shows sales and VAT per rate and exports CSV. It does not submit to HMRC, and for Making Tax Digital you need software recognised by HMRC.
Record keeping
Keep VAT records for 6 years.
Late payment
Statutory interest on late business payments is the Bank Rate (3.75 % in the second half of 2026) plus 8 points, so 11.75 %. On top comes fixed compensation of £40, £70 or £100, depending on the amount owed (under £1,000, from £1,000, from £10,000). Consumers have no statutory interest.
Getting paid
Your sort code and account number are on every invoice. Customers pay by Faster Payments or Bacs, and banks check the account name with Confirmation of Payee. There is no QR standard in the UK.

Frequently asked questions

Can I track hours and turn them into an invoice?

Yes. Saldiqo has time tracking with start and stop, open time per client and the invoice from time.

How do I bill clients in other EU countries?

You choose the tax type on the invoice, for example reverse charge. Saldiqo adds the note. Which rule applies to the client, you clear with your tax adviser.

Is there a login for my tax adviser?

Yes. You invite your tax adviser with their own login. They see your figures without changing anything and can pull exports.

Do IT freelancers in the UK have to charge VAT?

Only once they are VAT registered. Registration is required when taxable turnover passes £90,000 over any 12 months, or is expected to within the next 30 days. Below that you may register voluntarily. If you are not registered, you must not show VAT on your invoices.

Do IT freelancers in the UK need e-invoicing?

Not today. A mandate for B2B and B2G sales with VAT is planned from April 2029, and the details were still open as of October 2026. You can keep sending PDF invoices for now.

How long should IT freelancers keep invoices?

Keep VAT records for 6 years. You can store receipts digitally in Saldiqo. The legal duty to keep records stays with you.

Try Saldiqo for free

Write invoices, match payments, collect receipts and send reminders: free and without a trial period.

Start for free

This page for other countries

Niches in this industry

More industries

All industries

As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.