Receiving payments from European clients in the UK

Katerina Galkina · EN · 07/10/2026

Agree the payment method before work begins

State in the contract who supplies the service, the pricing currency, payment deadline and allocation of bank charges. EUR account details may suit a European client, but a multi-currency account is not essential for every transaction. Compare the amount received after conversion, rather than the advertised fee alone.

Check separately that your immigration permission allows self-employment or the proposed company activity. Being able to open an account does not confer permission to work. Do not describe a commercial payment as a personal gift to make the transfer easier.

Match the account to the business structure

A sole trader is not always legally required to have a separate business account, but personal-account terms may prohibit business transactions. Business.gov.uk explains the distinction ↗. Limited company finances need to be kept separate from personal money.

Check eligibility, supported client countries, EUR/GBP details, incoming SWIFT and SEPA payments, monthly fees, conversion charges and accounting exports. Establish whether the provider is a bank or a payment institution: the FCA describes differences in protection ↗. UK account details do not mean that every service offers identical protection.

Issue clear invoices

GOV.UK lists invoice information ↗, including a unique number, the parties' details, a service description, dates, amounts and applicable VAT. Use the correct sole trader identity or full company name. Add the currency, deadline, payment details and reference needed to reconcile the receipt.

Retain the contract, invoice, evidence of delivery, statement and provider fee. Agree how foreign-currency amounts will be converted to GBP for accounting. The net receipt after deductions can differ from invoiced turnover; record the fee separately rather than silently omitting part of the income.

Check VAT and handle delayed payments

Do not assume every EU payment is automatically free of VAT. For services, the service type, customer's status and place of supply matter. VAT Notice 741A ↗ sets out general rules and exceptions; consumer digital services require particular assessment. Check registration requirements on HMRC's current page ↗.

If a payment is delayed, ask the client for the sending date, amount, currency and bank reference, and compare the account details. Give the information to your bank; avoid issuing a duplicate invoice without explanation. Confirm changes of payment details through an established channel. Before accepting cards, understand refunds and chargeback terms: an apparently received payment can subsequently be disputed.