Invoice Due Date Net Terms

Quick answer

"Net" terms on an invoice state how many days the customer has to pay the full amount, with no discount. Net 30 means payment is due 30 days after the invoice date; net 60 means 60 days; net 90 means 90 days. The days are usually calendar days, although some businesses specify "business days" or use an end-of-month (EOM) convention instead. If no payment terms are agreed, UK law applies a default 30-day payment period under the Late Payment of Commercial Debts (Interest) Act 1998, after which statutory interest and compensation can be claimed.

What the net terms mean

Invoice payment terms are a shorthand for when payment is expected. The word "net" means the full amount is due with no early-payment discount. The number is the count of days from the invoice date. Common variations include:

• Net 30 - due 30 days from the invoice date.
• Net 60 - due 60 days from the invoice date.
• Net 90 - due 90 days from the invoice date.
• Net 30 EOM - due 30 days after the end of the month in which the invoice was issued.
• 2/10 net 30 - a 2% discount if paid within 10 days, otherwise the full amount in 30 days.
• Due on receipt - payment is expected immediately.

The most important distinction is the start point: most "net" terms run from the invoice date, but some run from the date the goods or services were delivered, or from the end of the invoice month. Because this varies, the wording of the specific invoice or contract always controls.

Calendar days vs business days

Unless the invoice explicitly says "business days" or "working days", net terms are almost always counted in calendar days. That means weekends and bank holidays count towards the 30, 60, or 90 days. If a due date falls on a weekend or bank holiday, payment is conventionally expected on or before the due date, though in practice many businesses treat payment on the next working day as on time. If your invoice or contract uses business days instead, the due date will land several days later than a calendar-day count would suggest. See our guide on business days vs calendar days for the full difference.

How to calculate an invoice due date

Calculating a due date is simple for calendar-day terms: add the number of days to the invoice date. For example, an invoice dated 1 March with net 30 terms is due on 31 March. With net 60 terms it is due on 30 April. Where the invoice uses EOM terms, first find the last day of the invoice month, then add the number of days - so net 30 EOM on a 1 March invoice is due on 30 April.

Use the invoice due date calculator to compute the date for your own invoice, including business-day and EOM options.

The default 30-day rule when no terms are agreed

Where a business-to-business or public-authority contract does not specify a payment date, the Late Payment of Commercial Debts (Interest) Act 1998 implies a default payment period of 30 days, running from the later of the date the supplier performed its obligations or the date the customer received notice of the amount due. Once that 30-day period ends, the payment is late and the supplier can claim statutory interest and fixed compensation. This default protects suppliers who do not have strong written terms.

What happens when payment is late

If a customer pays after the due date, the supplier can claim statutory interest at the Bank of England base rate plus 8 percentage points, plus a fixed compensation sum (£40, £70, or £100 depending on the debt size) and reasonable recovery costs, under the Late Payment of Commercial Debts (Interest) Act 1998. The right applies to commercial debts, not consumer debts. See our late payment interest UK guide for the full calculation, and use the late payment interest calculator to work out what you can charge.

Best practice for clear payment terms

Clear terms prevent disputes and make late-payment claims straightforward. On every invoice, state the payment due date explicitly rather than only the term, and include the invoice date, a unique invoice number, the amount, and your payment details. If you offer early-payment discounts, spell out the exact window. Where you sell to public authorities, remember that payment periods are capped at 30 days in most cases, and terms that are "grossly unfair" to the supplier can be struck down.

Step-by-step: working out an invoice due date

1. Find the invoice date and the payment term (net 30, net 60, net 90, or EOM).
2. Confirm the day type - calendar days unless "business days" is stated.
3. Add the number of days to the invoice date (or to the end of the invoice month for EOM terms).
4. Check for weekends and bank holidays and note whether payment on the next working day is acceptable.
5. State the due date clearly on the invoice.
6. Verify with the invoice due date calculator and diarise a reminder before the deadline.

Key takeaways

• Net 30, 60 and 90 mean payment is due that many days after the invoice date (usually calendar days).
• EOM terms run from the end of the invoice month, not the invoice date.
• If no terms are agreed, a 30-day default period applies under the Late Payment of Commercial Debts (Interest) Act 1998.
• Late payment entitles the supplier to statutory interest plus fixed compensation.
• Always state the exact due date on the invoice to avoid disputes.

Related guides

• Late Payment Interest UK
• Business Days vs Calendar Days
• FCA Complaint Response 8 Weeks

References

• Late Payment of Commercial Debts (Interest) Act 1998 (legislation.gov.uk)
• GOV.UK - Invoicing and taking payment from customers
• GOV.UK - Late commercial payments: charging interest and debt recovery
• Office of the Small Business Commissioner - Prompt Payment Code