Free Invoice Template for Builders (UK)
Building work is often paid in stages, and labour and materials need to be clear on the invoice, especially if you work for a contractor under the Construction Industry Scheme (CIS). A well laid out invoice avoids arguments about what was agreed.
Create this invoice free
Opens the Invoice Maker set up for builders. Start straight away, no account needed; a free account keeps your invoices and lets you download and send them (5 a month).
Example invoice for builders
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labour: kitchen extension, stage 1 (groundworks) | 5 | £220.00 | £1,100.00 |
| Materials: concrete, blocks and sand | 1 | £640.00 | £640.00 |
| Skip hire | 1 | £280.00 | £280.00 |
| Subtotal | £2,020.00 | ||
| CIS deduction 20% (on labour £1,100.00 only) | -£220.00 | ||
| Total due | £1,800.00 | ||
Not VAT registered, so no VAT is charged. Payment due within 14 days by bank transfer or card.
What every UK invoice must include
- A unique invoice number, in sequence
- Your name or business name, address and contact details
- The customer’s name (or business name) and address
- A clear description of what you are charging for
- The date the goods or services were supplied
- The date of the invoice
- The amount for each item, and the total amount owed
- VAT details, only if you are VAT registered
If you are a sole trader, show your own name and any business name you trade under. If you run a limited company, use the full registered company name. VAT invoices are only needed when you are VAT registered.
Worth adding for builders
- Labour and materials on separate lines
- The stage or phase of the job the invoice covers
- Any deposit already paid, taken off the total
- If you work under CIS: your CIS status and the deduction on labour only
CIS and the VAT reverse charge
If you work for a contractor under the Construction Industry Scheme, the contractor deducts CIS from the labour part of your invoice: 20% if you are registered for CIS, 30% if you are not, or nothing if you have gross payment status. Materials are never subject to the deduction.
If you are VAT registered and supply construction services to another VAT-registered business in CIS, the domestic reverse charge usually applies: you show the VAT on the invoice but do not add it to the total, and the customer pays it to HMRC. It does not apply to work for homeowners.
The Invoice Maker splits labour and materials, works out the CIS deduction and adds the reverse charge wording for you.
Tips to get paid faster
- Agree stage payments in writing before you start, and invoice each stage as soon as it is done.
- Keep receipts for materials: they are your costs, and the customer may ask to see them.
- For homeowners, CIS does not apply. For contractors, it usually does.
Business customers who pay late may owe you statutory interest of 8% above the Bank of England base rate, plus a fixed sum of £40, £70 or £100 depending on the size of the debt. This does not apply to private individuals.
With a free account you can connect Stripe, and every invoice gets a “Pay online” link and QR code, so customers can pay by card or Apple Pay straight away.
Frequently asked questions
Do I show materials separately from labour?
Yes, especially under CIS: the contractor deducts CIS from labour only, never from materials. Separate lines make the deduction clear.
What is the VAT reverse charge for builders?
Since 1 March 2021, when a VAT-registered builder supplies construction services to another VAT-registered business in CIS, the customer accounts for the VAT. Your invoice shows the VAT but does not add it to the total, and states “Reverse charge: customer to pay the VAT to HMRC”. It does not apply to work for homeowners.
Can I ask for a deposit?
Yes. Show the deposit on the final invoice as already paid, so the total due is correct.
Is the invoice template really free?
Yes. You can start an invoice straight away without an account. To download it as a PDF, email it or keep it, you create a free TaxEase UK account, which includes 5 invoices a month and card payments through Stripe.
Create this invoice free
Opens the Invoice Maker set up for builders. Start straight away, no account needed; a free account keeps your invoices and lets you download and send them (5 a month).
More invoice templates
TaxEase UK is an independent software product. We are not affiliated with or endorsed by HMRC or the UK Government. This page is general information, not tax or legal advice. Example prices are illustrative only.