Deposit invoice
Ask for a share of the price before you start. The invoice shows the full agreed total, the deposit due now and the balance you will bill later.
How big should the deposit be?
A deposit is really about one number: how much of your own money is at risk if the client walks away after you’ve started. Set the job size, what you must spend up front, and your stages.
The deposit covers your upfront costs, with 0 to spare. If the client cancels, you are not out of pocket.
Deposit, interim and final invoices
A deposit invoice collects money before work starts. An interim invoice bills a stage part-way through a long job (for example 30% at design approval, 40% at build). The final invoice bills the full total and subtracts what has already been paid. Keep one number sequence across all of them so your records reconcile.
When the job is done, press Turn into: Invoice. The deposit you set here is carried across as “Already paid”, so the final invoice shows only the balance.
Tax on deposits
In the UK, receiving a deposit or advance payment usually creates a VAT tax point for that amount, so a VAT invoice for the deposit is normally required (HMRC VAT Notice 700). Other countries have similar rules; ask your accountant if you are unsure.
Questions
How much deposit should a freelancer ask for?
Many freelancers and trades ask for 25–50% upfront, higher when they must buy materials. Whatever you choose, put it in the quote so it is agreed before the deposit invoice arrives.
Is an interim invoice the same as a deposit invoice?
Close. A deposit comes before work starts; an interim invoice bills a stage during the job. This template works for both: set the percentage for that stage.
Sources
Invoice Studio makes documents; it does not give legal or tax advice.