Builder invoice template (UK) with CIS deduction

Builders, plasterers, electricians and other trades working for a main contractor in the UK get paid under the Construction Industry Scheme (CIS): the contractor keeps back part of the labour and pays it to HMRC for you. An invoice that shows the deduction clearly means you and the contractor agree the net amount before anyone pays.

This template is set up for that: labour and materials on separate lines, the CIS deduction worked out on the labour, the net amount payable and your UTR. Fill it in online and download a PDF. No account needed. It opens in the free UK invoice generator, ready to fill in.

What's on this template

• Your name and trading name, address and phone.
• The contractor's company name and address.
• Invoice number, date, due date and the site or job reference.
• Labour and materials on separate lines.
• The invoice total, then "Less CIS deduction @ 20% on labour".
• The net amount payable and your UTR.
• Bank details.

Example line items

A plasterer, not VAT registered, billing a contractor:

The contractor pays £1,200 and passes £200 to HMRC in your name. The materials aren't touched. More worked examples, including with VAT, are in the CIS invoice guide.

VAT on construction invoices

If you're not VAT registered, the invoice has no VAT at all, as in the sample. If you are:

• for homeowners and other end users, charge VAT at the normal rate;
• for a VAT- and CIS-registered contractor who isn't an end user, the domestic reverse charge usually applies: you show the VAT but don't charge it. See reverse charge invoices.

Either way, the CIS deduction is worked out on labour only, never on VAT.

Payment terms

Contractors often pay on a monthly cycle, so match your invoice dates to theirs and state the due date. If a business pays late, statutory interest and compensation apply — see late payment interest.

Retentions and staged payments

Main contractors often pay subcontractors through monthly applications for payment, and some hold back a retention, commonly a small percentage of each payment, released at completion and after the defects period. If your contract has a retention, show it on the invoice so both sides agree the figures. The CIS deduction is still worked out on the labour, not reduced by the retention.

Your monthly statement

Each month, the contractor must give you a payment and deduction statement showing what they paid you and what they deducted under CIS. Check it against your invoices and keep it: it's your evidence of the tax already paid in your name. At the end of the tax year (6 April to 5 April), the deductions count towards your tax and National Insurance bill in your Self Assessment, and you can claim back any overpayment.

Registering for CIS

If you're not registered with HMRC as a CIS subcontractor, contractors must deduct 30% instead of 20%. Registering is free and quick, so it's worth doing before your first contractor job. Contractors check your status with HMRC before paying you, using your name, UTR and National Insurance number or company details.

Making it easy to pay

Bank transfer is the default in the UK: print the account name exactly as your bank holds it, the sort code (20-00-00) and the 8-digit account number, and ask customers to use the invoice number as the payment reference so you can match the money when it arrives. If you take card payments, add a payment link alongside the bank details. A short "Thank you for your business" in the notes costs nothing and reads better than a bare demand for payment.

Common mistakes

• Labour and materials lumped together, inviting a deduction on the lot.
• The invoice total reduced to the net amount. The total stays; the deduction comes off below it.
• No UTR, so the contractor can't match you.
• A CIS deduction on a homeowner's invoice.