Headhunter Invoice Template: Free Guide and Examples

A clean headhunter [invoice template](/invoice-template) is the difference between getting paid within 14 days of a placement and chasing a finance department for three months while your fee sits in dispute. Recruitment is one of the few professional services where the bill can run into five or six figures off a single document, which means the invoice has to be precise about who was placed, what the salary basis is, and exactly what happens if the candidate leaves. This guide breaks down what to put on a headhunter invoice, the fee models you need to support, and a realistic worked example you can copy.

Whether you run a contingency desk, a retained executive search firm, or a solo headhunting practice, the principles are the same: tie every charge to a named placement, reference the terms of business the client signed, and make the guarantee period unmistakable. Get those three things right and most payment disputes never start.

Why Headhunters Need a Specialized Invoice

Most invoice templates are built for hours-times-rate or simple product lines. Headhunting does not work like that. Your fee is usually a percentage of a salary you do not control, it is triggered by an event (the candidate's start date or offer acceptance), and it comes attached to a money-back-style guarantee that no plumber or designer ever issues.

That combination creates billing risk that generic templates ignore. If your invoice does not state the salary the fee was calculated on, the client can later claim a lower base. If it does not reference the guarantee, you may be forced to refund without a clear schedule. And if it does not cite the signed terms of business, you have nothing to point to when a hiring manager who "forgot" they engaged you disputes the bill.

A profession-specific invoice also signals seriousness. A senior client paying a $15,000 placement fee expects a document that reads like it came from a search firm that closes deals every week, not a free spreadsheet with the supplier's old logo half-cropped at the top.

What to Include on a Headhunter Invoice

Every headhunter invoice should carry a core set of fields. Some are legal essentials; others exist purely to prevent the disputes covered later in this guide.

• Your business details: legal name, trading name, address, company/registration number, and tax/VAT number if registered.
• Client details: the hiring company's legal entity (not just the brand), billing contact, and a purchase order number if they use one.
• Invoice number and date: sequential, unique, with the invoice date and the date of the placement event that triggered billing.
• The placed candidate's name: the single most important line - the fee is for placing this specific person into this specific role.
• The role/title placed: as it appears in the offer letter.
• The fee basis: the candidate's agreed annual base salary (and whether bonus, sign-on or guaranteed commission is included).
• The fee calculation: the percentage applied, or the fixed retained amount, shown explicitly (e.g. 20% of $75,000).
• Deposits or stage payments already made: retainer, shortlist or engagement fees deducted from the balance.
• Subtotal, tax and total due: with currency clearly stated.
• Payment terms and bank/payment details: net days, accepted methods, and late-payment terms.
• The guarantee/rebate clause: the period and the refund or free-replacement terms.
• A reference to your signed terms of business.

The candidate and role line items

Unlike an hourly invoice, your line items are events and placements, not time. A typical contingency invoice has one main line: the placement fee for the named candidate. A retained search invoice usually has three lines mapping to the milestone schedule (engagement, shortlist, completion). List each clearly so the client's finance team can reconcile each payment against the assignment they approved.

How Headhunters Charge: Fee Models and Billing Units

Headhunters do not bill by the hour in most markets. Your "billing unit" is the placement, the retained engagement, or a defined search milestone. Here are the models you should be able to invoice for.

Percentage of first-year salary (the standard)

The dominant model. You charge a percentage of the candidate's first-year base salary, commonly in the 15%-30% range depending on seniority and difficulty. Mid-level roles often sit around 15%-20%; senior and executive search frequently runs 25%-33%. Your invoice must state the exact salary figure and percentage so the math is transparent.

Fixed/flat placement fee

Some headhunters charge a fixed amount per hire regardless of salary - popular for high-volume or junior roles where a percentage would be small. The invoice simply shows the agreed flat fee per placement.

Retained search (milestone billing)

For executive and confidential searches, you charge a retainer split across milestones - typically a third on engagement, a third on shortlist delivery, and a third on placement. Each milestone is its own invoice. This is closer to progress billing and protects you because you are paid for the work even if the client pauses the search.

Container / hybrid model

A blend: a smaller upfront engagement fee (the "container") plus a contingent balance on placement. The invoice shows the upfront fee first, then a later balance invoice once the candidate starts.

What headhunters typically itemize

• The placement fee or retained milestone (the main charge).
• Any agreed advertising spend or assessment/psychometric testing passed through at cost.
• Travel reimbursements for candidate interviews, if your terms allow.
• Engagement or retainer deposits already paid (shown as deductions).
• Tax (VAT, GST or sales tax) where applicable.

Most headhunters do not itemize their own hours, sourcing calls or screening time - those are baked into the fee. Trying to line-item your effort invites a client to question it.

Contingency vs Retained: An Invoicing Comparison

The two dominant models invoice very differently. The table below shows how a single $90,000-salary placement at a 25% fee plays out under each.

The practical takeaway: retained search smooths your cash flow and reduces the risk of doing weeks of work for nothing, but it asks the client to commit money before a hire exists. Contingency is easier to win but loads all your billing risk onto the final start date.

A Worked Headhunter Invoice Example

Here is a realistic contingency placement invoice for a fictional but believable scenario. Meet Priya Nair, who runs Meridian Talent Partners, a boutique headhunting firm specializing in fintech engineering and product roles. She placed a Head of Product with a Series B fintech, Lyra Finance Ltd, at a $95,000 base salary on a 22% contingency fee. Lyra paid a $2,000 engagement deposit when they engaged Meridian exclusively.

Invoice header: Meridian Talent Partners, 14 Calder Street, Manchester, company no. 11223344, VAT no. GB 998877665. Invoice #MTP-2026-0148, dated 14 June 2026.

Bill to: Lyra Finance Ltd, 2 Quayside, London EC2. PO #LF-4471. Billing contact: finance@lyrafinance.example.

Placement details: Candidate start date 9 June 2026. Offer accepted 16 May 2026.

Payment terms: Net 14 days. Payment by bank transfer to the account below. Late payments subject to interest under the Late Payment of Commercial Debts (Interest) Act 1998.

Guarantee: If the placed candidate leaves or is dismissed for cause within 12 weeks of the start date, Meridian will provide one free replacement search, or a pro-rata refund as set out in clause 6 of the signed Terms of Business dated 1 May 2026.

That single document tells Lyra's finance team exactly who was placed, the salary the fee was built on, what they already paid, the tax, the deadline, and what their protection is. There is almost nothing left to argue about.

Payment Terms, Deposits and Guarantee Clauses

Recruitment payment norms are tighter than many service industries because the sums are large and the trigger is a clear event.

Typical payment terms

• Net 7 to net 30 is standard, with net 14 being common for established client relationships. Large corporates may push for net 60 - push back, because the candidate has already started and your work is done.
• Trigger point: most firms invoice on the candidate's start date; some invoice on offer acceptance. State which applies in your terms and on the invoice.
• Late payment interest: in the UK you can charge statutory interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998. In the US, set your own late fee in the contract.

Deposits and engagement fees

For retained and container searches, an upfront engagement fee is normal and usually non-refundable, because it pays for the search work itself. Make this explicit in both the terms and on the first invoice. Contingency placements rarely take deposits, though some headhunters take a small "exclusivity" engagement fee that is later credited against the placement fee (as in the worked example above).

The guarantee / rebate clause

This is the clause that defines recruitment invoicing. If the candidate leaves shortly after starting, you typically owe the client either a free replacement search or a sliding-scale refund:

• Replacement guarantee: you re-run the search at no fee within a defined window (often 8-12 weeks).
• Rebate/refund scale: e.g. 100% refund if the candidate leaves in week 1-4, 50% in week 5-8, 25% in week 9-12, nothing thereafter.

Reference the clause on every placement invoice. It manages client expectations and stops a departing-candidate situation from turning into a dispute about whether any refund is owed at all.

Tax, Rights and Contract Notes for Headhunters

Tax and contract treatment vary by country and entity, so treat this as general guidance and confirm with an accountant in your jurisdiction.

• VAT/GST/sales tax: If you are VAT-registered in the UK or EU, placement fees are normally standard-rated and VAT is added on top of the net fee. In the US, recruitment services are taxed differently by state - many states do not tax professional recruitment services, but check. Show tax as its own line and never bury it in the total.
• The fee is on the net placement value: charge tax on your fee, not on the candidate's salary. The salary is just the basis for calculating your fee.
• Terms of Business are everything: your invoice should reference a signed Terms of Business agreement. This is what makes the fee enforceable. Without it, an "introduction" can be disputed, especially if the client claims they sourced the candidate elsewhere.
• Candidate-source/ownership clauses: your terms should define how long after an introduction a hire counts as "yours" (a candidate-ownership window), and cover situations where the candidate is placed in a different role than originally briefed.
• Self-employed / sole-trader headhunters: if you operate without a limited company, your placement income is self-employment income - keep clean records of every invoice for your tax return and set money aside for income tax and national insurance or self-employment tax.

Common Billing Disputes (and How to Prevent Them)

Recruitment generates a predictable set of payment fights. Almost all of them are preventable at the invoice and terms stage.

Dispute 1: "The salary was lower than you billed"

A client claims the candidate's real base is below the figure your fee was calculated on. Prevent it by stating the agreed salary basis on the invoice and confirming it in writing (offer letter copy) before billing.

Dispute 2: "We never signed terms"

The hiring manager engaged you informally; finance now refuses to pay an unsigned fee. Prevent it by never starting a search without signed Terms of Business and referencing them on the invoice.

Dispute 3: "The candidate left, so we owe nothing"

The candidate resigns in week 6 and the client withholds the whole fee. Prevent it with an explicit rebate scale: a week-6 departure might mean a 50% refund, not 100%. Cite it on the invoice so the math is agreed in advance.

Dispute 4: "We found that candidate ourselves"

The client claims they already had the candidate in their pipeline. Prevent it with a candidate-introduction record (dated email/CV submission) and a candidate-ownership clause in your terms.

Dispute 5: Net-60 surprise

Finance pays on net 60 when you assumed net 14. Prevent it by stating payment terms on the invoice and in the signed terms, and confirming them with the billing contact before the start date.

Dispute 6: The role changed

You briefed for a Head of Product; the client hired your candidate as a VP. Prevent it by including a clause covering placements in alternative or more senior roles, billed on the actual accepted salary.

Pros and Cons of Different Invoicing Approaches

Headhunters generally choose between a manual template (Word/Excel/PDF), a generic invoice tool, or AI-powered invoicing software. Here is how they stack up for recruitment specifically.

Manual template (Word/Excel/PDF)

• Pros: free, fully customisable, fine for a handful of placements a month, easy to email as a PDF.
• Cons: no automatic numbering, easy to fat-finger a fee calculation, no payment tracking, no reminders, guarantee clauses get forgotten, hard to scale past a few invoices.

Generic invoicing tool

• Pros: handles numbering, tax and payment links; cheaper than full accounting suites.
• Cons: not built for placement fees, salary-basis fields or guarantee clauses; you bolt recruitment logic on manually; milestone billing for retained search is clunky.

AI-powered invoicing platform

• Pros: generate a complete, professional invoice from a single sentence; automatic numbering, tax, online payment, reminders and analytics; easy to clone for milestone billing and store guarantee terms.
• Cons: a recurring subscription; you still need to enter the correct fee and salary basis (no tool invents your terms).

For a solo headhunter doing two placements a month, a polished template may be enough. For a busy desk or a growing firm running both contingency and retained assignments, the time saved and the reduction in calculation errors usually justify dedicated software.

Best Practices for Headhunter Invoicing

Follow these in order and your placement invoices will get paid faster with fewer disputes.

1. Never start a search without signed Terms of Business. The invoice is only as strong as the agreement behind it.
2. State the salary basis and percentage on every placement invoice. Make the fee math visible and unarguable.
3. Name the candidate and the role. The fee is for placing a specific person; the document should say so.
4. Show deposits and engagement fees as clear deductions, so finance can reconcile every payment.
5. Always include the guarantee/rebate clause with its period and refund scale referenced.
6. Invoice promptly on the trigger event - the start date or offer acceptance - while the placement is fresh in everyone's mind.
7. Use sequential, unique invoice numbers for clean records and tax compliance.
8. Set firm, written payment terms (net 14 is a good default) and state late-payment terms.
9. Send a friendly reminder before the due date, then escalate on a fixed schedule.
10. Keep every invoice and offer letter on file for the candidate-ownership window and for tax.

Summary

A strong headhunter invoice template does far more than request money - it records the placement, fixes the salary basis your fee was built on, credits any deposit, and pins down the guarantee so a departing candidate never becomes a refund argument. Recruitment fees are large and event-triggered, so precision on the invoice is what gets you paid in 14 days instead of 90.

Choose the fee model that fits your desk - percentage-of-salary contingency, retained milestone billing, or a hybrid container - and build your template to support it. Reference your signed Terms of Business, name the candidate, show the math, and cite the guarantee on every invoice. Do that consistently and you will spend your time placing candidates, not chasing finance departments.

Frequently asked questions

How do headhunters charge their clients?

Most headhunters charge a percentage of the placed candidate's first-year base salary, commonly between 15% and 30% depending on seniority and difficulty. Some charge a fixed flat fee per hire, while executive search firms often work on a retained basis with a fee split across milestones such as engagement, shortlist and placement. The model should be agreed in the Terms of Business before any search begins.

When does a headhunter invoice the client?

Usually on the candidate's start date, though some firms invoice on offer acceptance. Retained search firms invoice in stages: an engagement invoice before work starts, a shortlist invoice on delivery, and a final invoice on placement. Whichever trigger you use, state it clearly in your terms of business and on the invoice so the client knows exactly when payment becomes due.

What should a headhunter include on an invoice?

Include your business and tax details, the client's legal entity, a unique invoice number and date, the placed candidate's name and role, the agreed salary basis, the fee percentage or fixed amount, any deposit deducted, subtotal, tax, total due, payment terms, and the guarantee or rebate clause. Reference the signed Terms of Business so the fee is enforceable.

What is the difference between contingency and retained invoicing?

Contingency invoicing produces a single invoice issued only after the candidate starts, so you carry all the risk until success. Retained invoicing splits the fee across milestones - typically engagement, shortlist and placement - so you are paid throughout the search regardless of outcome. Retained smooths cash flow and lowers risk; contingency is easier to win but loads billing risk onto the final start date.

How is a placement fee calculated?

A percentage fee is the candidate's agreed first-year base salary multiplied by the agreed percentage. For example, 22% of a $95,000 salary is $20,900. Confirm whether bonus, sign-on or guaranteed commission counts toward the salary basis before you calculate, and state both the salary figure and the percentage on the invoice so the math is transparent and unarguable.

What is a guarantee or rebate period on a recruitment invoice?

It is the window after a candidate starts during which you owe the client a remedy if the placement fails. A replacement guarantee means you re-run the search free of charge; a rebate scale means a sliding refund - for example 100% in weeks one to four, 50% in weeks five to eight, 25% in weeks nine to twelve. Reference the exact terms on every placement invoice.

Do headhunters charge VAT or sales tax on placement fees?

If you are VAT-registered in the UK or EU, placement fees are normally standard-rated and VAT is added on top of your net fee. In the US, taxation of recruitment services varies by state, and many states do not tax professional recruitment, so check locally. Always charge tax on your fee, not on the candidate's salary, and show it as a separate line.

Should I take a deposit as a headhunter?

For retained and container searches, yes - an upfront engagement fee is standard and usually non-refundable because it funds the search work itself. For contingency placements deposits are rare, though some headhunters take a small exclusivity engagement fee that is later credited against the final placement fee. Always show any deposit as a clearly labeled deduction on the final invoice.

What payment terms should a headhunter use?

Net 14 is a sensible default for established relationships, with net 7 to net 30 all common in the market. Resist net 60 pushes from large corporates - your work is complete once the candidate starts. State the terms on the invoice and in the signed terms, and include late-payment terms such as statutory interest in the UK or a contractual late fee in the US.

Can a client refuse to pay if the candidate leaves quickly?

Not entirely, if your terms include a rebate scale. A client cannot simply withhold the full fee because a candidate resigned in week six; what they owe is governed by the guarantee clause you agreed. If your scale says a week-six departure means a 50% refund, that is the remedy. This is exactly why the guarantee clause must be referenced on every placement invoice.

Conclusion

A well-built headhunter invoice template protects the most valuable moment in your business - the placement - by recording the candidate, the salary basis, any deposit, the tax and the guarantee in one unambiguous document. Because recruitment fees are large and triggered by a single event, the invoice carries more weight than in almost any other service profession, and small omissions turn into long disputes.

Decide on your fee model, anchor every invoice to signed Terms of Business, name the candidate, show the calculation, and cite the rebate clause. Whether you run a contingency desk or a retained search firm, a precise, professional headhunter invoice is what gets your fee paid on time and keeps clients coming back for the next search.

Related guides

• Recruiter Invoice Template: Free Guide and Examples
• Milestone Billing Guide: How to Structure Payments and Get Paid Faster
• How Deposit Invoices Protect Your Business
• Best Payment Terms for Agencies: How to Get Paid Faster in 2026
• Invoice Best Practices for Getting Paid On Time
• How to Get Paid Faster With Better Invoices

Sources and further reading

• Late Payment of Commercial Debts (Interest) Act 1998
• Invoicing and taking payment from customers (GOV.UK)
• VAT rates on different goods and services (GOV.UK)
• Recruitment (Wikipedia)
• Self-employed: invoices and record keeping (IRS)