Free CIS Invoice Template for Subcontractors (UK)
Under the Construction Industry Scheme, the contractor takes a deduction from your pay and sends it to HMRC for you. Your invoice should make that deduction easy to check: labour and materials apart, the CIS rate, and the amount you expect to receive.
Create this invoice free
Opens the Invoice Maker set up for CIS subcontractors. 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 CIS subcontractors
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labour: second fix carpentry, 3 days | 3 | £200.00 | £600.00 |
| Materials: timber and fixings | 1 | £180.00 | £180.00 |
| Subtotal | £780.00 | ||
| CIS deduction 20% (on labour £600.00 only) | -£120.00 | ||
| Total due | £660.00 | ||
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 CIS subcontractors
- Labour and materials on separate lines
- Your CIS rate: 20% if registered, 30% if not, 0% with gross payment status
- The CIS deduction worked out on labour only
- The amount due after the deduction
- If VAT registered: the reverse charge wording
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
- Register for CIS with HMRC: unregistered subcontractors lose 30% of labour instead of 20%.
- Ask the contractor for your monthly CIS statement and keep it: the deductions count towards your tax bill.
- Check the deduction on your statement matches the one on your invoice.
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
Is CIS taken from materials?
No. CIS is deducted from labour only. Materials you bought for the job are paid in full.
What happens to the CIS deducted?
It is an advance payment towards your tax and National Insurance. You claim it back against your bill on your Self Assessment return.
Do I need to be VAT registered?
Only if your taxable turnover goes over £90,000 in a rolling 12 months. If you are, the domestic reverse charge usually applies to work for other VAT-registered construction businesses.
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 CIS subcontractors. 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.