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An invoice template for trades has to carry the nine details GOV.UK requires on every invoice, from a unique invoice number to the total owed, plus a line or two that depend on whether you're a sole trader or a limited company. VAT-registered firms, and anyone working as a subcontractor under the Construction Industry Scheme (CIS), need a few more lines, and a business customer can hold back payment until they're right.
Below is an invoice template to print or copy, what goes in each part, the extra lines for VAT, the reverse charge and CIS, and a worked example for a subcontract job. It suits plumbers, heating engineers, electricians, roofers, builders and joiners. For setting payment terms and chasing late payers, see the guide to invoicing and getting paid for trade work.
An invoice layout for every trade job
Use the template below on headed paper, in a spreadsheet or as the layout in your invoicing app. It covers a homeowner, a landlord or a main contractor on one form: lines that don't apply say "none" or are left blank, so the customer can see nothing was forgotten.
The rest of this guide goes through each part: what must be there, what most firms leave out, and the extra lines for VAT and CIS.
What every invoice must show
GOV.UK's list for all businesses is short, and every item on it is on the template. Invoices must include a unique identification number; your company name, address and contact information; the name and address of the customer you're invoicing; a clear description of what you're charging for; the date the work was done; the date of the invoice; the amounts charged; the VAT amount if there is any; and the total owed.
Two groups add to that. If you're a sole trader, GOV.UK says the invoice must also show your own name and any business name you use, and, if you trade under a business name, an address where legal documents can be delivered to you. So "Brook Heating" alone isn't enough; "Sam Ellis trading as Brook Heating" with an address is.
If you're a limited company, GOV.UK says the invoice must show the full company name as it appears on the certificate of incorporation, and if you put any directors' names on it, you must include all of them. Many companies also add the company number and registered office, so one footer works for invoices, letters and order forms.
That list is the legal minimum. A customer can still struggle to pay an invoice that has all nine items, if it doesn't say how to pay, by when, or which job it's for. The parts below fill those gaps.
Numbers, dates and the job reference
Give every invoice a number in one sequence, and never reuse or skip one. A simple run such as 1041, 1042, 1043 works; so does a prefix by year if you prefer. A gap in the sequence is one of the first things an accountant asks about, so if an invoice is cancelled, keep it and mark it cancelled rather than deleting it.
There are two dates, and they do different jobs. The invoice date is the day you send it. The date the work was done is the supply date. On a two-week job, put the range, or the completion date if the price covers the finished job. If you're VAT registered there's also the tax point, the date that decides which VAT return the sale goes on. It depends on when the work finished, when you invoiced and when you were paid, so let your accountant or invoicing app set it, and show it on the invoice.
Then add the references the customer uses. A homeowner wants the job address and the quote number. A letting agent wants the property address and the landlord's name, and a business customer usually wants its own purchase order number. A main contractor may want the site, the plot and the subcontract or order reference. An invoice without the customer's reference often sits in a queue until someone rings to ask what it's for.
Describe the work so it matches the quote
The description is where most queries start. "Plumbing work, £1,240" makes the customer go back to the quote, the texts and their memory to check it. A description that follows the quote line by line lets them tick it off in a minute.
So invoice in the same order and the same words as the accepted quote, using the quote's task numbers if it had them. Our quote template for trade work numbers each task for this reason. If you quoted one fixed price, the invoice can show that price as one line, with the quote reference beside it.
Show each extra as its own line, with the date and how it was approved: "V1: rebed two ridge tiles, approved by text 3 March, £140". An extra that appears only as a bigger total is the line customers dispute. Our variation form template for trade jobs keeps a log you can copy straight across.
Take off anything already paid. If the customer paid a deposit or a stage payment, show it as a deduction above the total, with the date it was received, so the figure at the bottom is what they still owe. An invoice that shows the full price and leaves the customer to subtract the deposit is an easy way to get a worried phone call.
Write the description from the completed job record, not from memory. If your engineer fills in a job sheet with what was found, what was done and what extra was agreed, the office can invoice the same day. Our job sheet template for trade visits sets out those fields.
VAT invoices and the extra lines they need
If you're VAT registered and your customer is VAT registered too, you must give them a VAT invoice. Regulation 13 of the VAT Regulations says you must provide a VAT invoice to a VAT-registered customer within 30 days of the time of supply. A landlord's company, a letting agent, a builder or a commercial client will need one to reclaim the VAT.
Regulation 14 lists what a VAT invoice must show. On top of the basic invoice, the lines a trade invoice most often misses are:
- your VAT registration number
- the time of supply, as well as the date of issue
- for each line, the quantity or extent of the work, the rate of VAT and the amount before VAT
- the unit price, where the work is charged by the unit, such as per metre or per hour
- the total before VAT, and the total VAT, shown in pounds
- the words "reverse charge" where the customer pays the VAT to HMRC (see below)
You don't have to give a homeowner a VAT invoice, because they aren't VAT registered. Using the same full layout for every customer is still simpler: it costs nothing to show the VAT number and the VAT line, and it means a landlord who turns out to be a company already has what they need.
If you're not VAT registered, say so on the invoice, and don't show a VAT line or a VAT number. The customer then knows the total is the total.
The table below shows what to add for the three customers most trades invoice.
| Customer | What to add | Why |
|---|---|---|
| Homeowner | Job address, quote number, any deposit paid, a due date and how to pay | They check against the quote and pay from the bank details |
| Landlord, letting agent or other business | Property address, the customer's order number, the name of the person who approved the work, and a full VAT invoice if you're both VAT registered | Their accounts team matches the order number and reclaims the VAT |
| Builder or main contractor (CIS) | Site and plot, their order or subcontract reference, labour and materials split, the reverse charge wording if it applies, your CIS details | They work out the CIS deduction and account for the VAT themselves |
Reverse charge on work for other contractors
If you're VAT registered and do construction work for another VAT-registered business that is registered for CIS, such as a builder you subcontract to, the domestic reverse charge usually applies. You don't charge the VAT to the customer. They pay it to HMRC themselves.
HMRC's reverse charge technical guide says your invoice must still show everything a VAT invoice needs, plus a note that the domestic reverse charge applies. It must state how much VAT is due under the reverse charge, or the VAT rate if you can't show the amount, and it must not include the VAT in the amount you charge. HMRC gives example wording such as "Customer to pay the VAT to HMRC" and "VAT Act 1994 Section 55A applies", and the regulations require the reference "reverse charge". The template has a line with that wording ready to tick.
The charge doesn't apply to everyone. It doesn't apply to a private homeowner, who won't be VAT registered. It also doesn't apply when the customer tells you in writing that they are the end user, such as a business having its own premises refitted, or an intermediary supplier. If the reverse charge part of a job is 5% or less of the whole, HMRC's guide says it can be disregarded, but only if you and the customer agree that at the start of the contract, not invoice by invoice.
If you're not sure whether a customer is an end user, ask them to confirm it in writing before the first invoice, and keep the reply with the job. Getting it wrong means one of you has to correct the VAT later.
CIS deductions on a subcontractor invoice
If you work for a builder or main contractor under CIS, they take a deduction from your payments and pass it to HMRC as an advance on your tax. GOV.UK's CIS guidance for subcontractors sets the rate at 20% if you're registered and 30% if you're not, with no deduction if you have gross payment status.
The same guidance says the deduction isn't taken from the VAT, from materials you paid for, or from a few other costs such as hired plant. Your contractor may ask for evidence of what you paid for materials, such as receipts. If you don't have any, the contractor will estimate the cost of the materials.
So split the invoice into labour and materials, keep the materials receipts with the job, and send copies if asked. A single "supply and fit" figure leaves the contractor to guess the split, and their estimate of the materials may be lower than what you paid, which means a bigger deduction.
Many subcontractors also show the expected deduction and net payment on the invoice. It isn't required, and the contractor works out the actual figure, but it means you both expect the same number. GOV.UK says the contractor must give you a payment and deduction statement within 14 days of the end of each tax month. Check it against your invoices each month, and keep the statements; HMRC may ask for them as evidence of the deductions.
The example below shows CIS and the reverse charge on one invoice.
Example: a subcontract electrician's invoice to a builder
This is an invented example to show the template in use. The business names, figures and job are made up, and the figures are not a guide to what electrical work costs.
Illustrative example: a subcontract electrician's invoice to a builder
From: Dana Ruiz trading as Ruiz Electrical, address and phone on the invoice; VAT registered; CIS registered, standard rate
To: Hollis and Grant Builders Ltd, VAT registered and CIS contractor, not an end user
Invoice: 3187, issued 14 March; work done 3 to 12 March (first fix, single storey extension, 9 Orchard Way)
References: Hollis and Grant order PO-4471; Ruiz quote Q-312
Work: 1. First fix wiring, sockets and lighting circuits, 6 days at £400 a day, £2,400. 2. Cable, back boxes and consumer unit bought for the job, £600 (receipts attached)
Subtotal before VAT: £3,000
Reverse charge: customer to pay the VAT to HMRC. VAT Act 1994 Section 55A applies. VAT at 20%: £600
CIS: labour £2,400; materials £600; expected deduction at 20% of labour £480; expected net payment £2,520
Payment: due 30 days from invoice, by bank transfer, reference 3187
Hollis and Grant's office matches the order number, sees the labour and materials split with receipts, and accepts the £600 as materials. It deducts £480 for CIS and pays Dana £2,520. The £600 VAT never changes hands: Hollis and Grant accounts for it on its own VAT return. At the end of the tax month, Dana checks the payment and deduction statement shows £2,400 of labour and £480 deducted.
If Dana had invoiced "first fix, £3,000 plus VAT £600, total £3,600", the builder's office would have sent it back twice: once to remove the VAT under the reverse charge, and once for the labour and materials split. Each round trip can cost a week or more on a 30-day term.
Payment terms, bank details and the due date
Put a due date on every invoice as a date, such as "Due by 13 April", not "30 days". Customers pay against a date; "30 days" leaves them to work out when the 30 days started. Use the terms you agreed on the quote, so the two documents say the same thing.
GOV.UK's invoicing guidance doesn't set a payment period for homeowners, so what you agreed is what counts. For business customers, the late payment rules give a default and a right to interest when no date was agreed. The Getting paid guide covers both, and when to mention interest.
Show how to pay in one place: bank name, sort code, account number and the reference to use, which should be the invoice number. If you take card payments, add the link or the number to ring.
Add one line about your bank details: "Our bank details will not change by email or text." A customer who has read that line on every invoice is more likely to ring you before paying into a new account. The Getting paid guide covers invoice fraud and what to do if money goes to the wrong account.
Corrections, credit notes and copies
Once an invoice has gone, don't edit it and send it again with the same number. If it was wrong, issue a credit note that cancels all or part of it, referring to the original number, and then a new invoice if needed. That keeps the sequence complete and gives both of you a clear record of what changed.
Send the invoice the way the customer asked for it, usually email, and keep a copy of every invoice you issue, including any you cancel. If you use an invoicing app, it keeps the copies for you; if you use a spreadsheet or paper, save each one as a PDF in a folder by tax year. How long to keep them differs for sole traders and companies; the job sheet guide covers the HMRC periods.
These rules apply across the UK: England, Scotland, Wales and Northern Ireland. This is not legal advice or tax advice. It summarises GOV.UK and HMRC guidance and the VAT Regulations linked here. If you're unsure whether VAT, the reverse charge or CIS applies to a job, ask your accountant or HMRC before you invoice.
Invoice mistakes that delay payment
Most slow payments trace back to something on the invoice itself. These are the ones to check for.
| Mistake | What happens | Fix |
|---|---|---|
| No customer reference | The accounts team can't match it to an order, so it misses the payment run | Ask for the order number before you start and put it on the invoice |
| One total with no breakdown | The customer can't check it against the quote, and a CIS contractor can't split labour from materials | Invoice line by line, in the quote's order |
| Extras hidden in the total | The extra is the line the customer queries | List each variation with its date and approval |
| VAT charged on a reverse charge job | The builder sends it back to be reissued, and the wait starts again | Check the customer's status before the first invoice |
| Deposit not taken off | The customer is left to do the maths and rings to check | Show what was paid and what's left |
| A due date the customer has to work out | Payment drifts | Write the due date as a date |
| New bank details sent by email | The customer can't tell your change from a fraud attempt | Ring each customer, and expect them to ring back to check |
Check your last three invoices against the template
Take the last three invoices you sent, ideally one to a homeowner, one to a business and one to a contractor if you do subcontract work. Check each against the template: the number in sequence, both dates, the customer's reference, the description against the quote, any variations and deposits, the VAT or reverse charge lines, the CIS split and a due date. Change your invoice layout for whatever was missing before the next job goes out.
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Sources checked for this guide
Invoice content, VAT invoice, reverse charge and CIS points checked against GOV.UK, HMRC guidance and the VAT Regulations 1995. These are the primary sources used in this guide.
- GOV.UK, Invoicing and taking payment from customers: invoices, what they must include
- legislation.gov.uk, Value Added Tax Regulations 1995, regulation 13
- legislation.gov.uk, Value Added Tax Regulations 1995, regulation 14
- HMRC, VAT domestic reverse charge for building and construction services: technical guide
- GOV.UK, What you must do as a Construction Industry Scheme (CIS) subcontractor: get paid