A construction invoice should let the person approving payment answer three questions without ringing you: what work was done, what period or job the charge covers, and how much is due now.
The template below is for UK builders and subcontractors. It covers a standard building invoice first, then shows what changes when the Construction Industry Scheme (CIS) or the VAT domestic reverse charge applies.
This is general information, not tax or legal advice. Check the treatment of a particular job with your accountant or HMRC.
Construction invoice template
Copy this structure into your invoice system and replace the brackets.
Your business
[Full legal business name]
[Trading name, if different]
[Business address]
[Telephone and email]
[Company number, if limited]
[VAT registration number, if VAT registered]
Customer
Bill to: [Customer or contractor’s full name]
[Customer address]
[Customer VAT number, if needed for the reverse charge]
Invoice details
Invoice number: [Unique sequential number]
Invoice date: [DD Month YYYY]
Supply date or period: [Date, week ending or valuation period]
Project: [Short job name and site address]
Purchase order: [PO number, if the customer gave you one]
Payment due: [Date and payment term]
Work and charges
| Description | Quantity | Rate | Amount |
|---|---|---|---|
| [Labour or work package] | [ ] | £[ ] | £[ ] |
| [Materials supplied] | [ ] | £[ ] | £[ ] |
| [Plant, hire or other agreed cost] | [ ] | £[ ] | £[ ] |
| Subtotal | £[ ] | ||
| VAT [rate, if applicable] | £[ ] | ||
| Gross total | £[ ] | ||
| CIS deduction [rate] on labour of £[ ] | -£[ ] | ||
| Amount due | £[ ] |
Payment details:
Account name: [ ]
Sort code: [ ]
Account number: [ ]
Payment reference: [Invoice number]
Notes: [Payment terms, agreed retention, reverse-charge wording or supporting documents]
Delete the CIS and reverse-charge parts when they do not apply. Do not add them to every building invoice by default.
What every UK invoice needs
Government guidance on invoices says an invoice must include:
- a unique identification number
- your company name, address and contact details
- the customer’s company name and address
- a clear description of the goods or services
- the supply date
- the invoice date
- each amount charged
- VAT, when applicable
- the total amount owed
A sole trader must also show their own name and an address where legal documents can be delivered if they use a business name. A limited company must use its full registered company name.
For a building job, add the project name, site address, quotation or purchase-order reference, and the valuation period. They are not substitutes for the required invoice details. They stop the invoice being passed around because the accounts team cannot match it to the job.
A worked construction invoice example
This example is a builder charging a commercial customer under normal VAT rules. CIS is not being deducted.
Project: Workshop alteration, Unit 6, Leeds
Supply date: 31 August 2026
Payment terms: 14 days
| Description | Amount |
|---|---|
| Labour: partition framing and first fix | £3,000.00 |
| Materials: timber, board and fixings | £1,200.00 |
| Subtotal | £4,200.00 |
| VAT at 20% | £840.00 |
| Amount due | £5,040.00 |
Keep the work description specific. “Building work” gives the approver little to check. “Partition framing and first fix, workshop alteration” links the charge to an agreed part of the job.
If the work was quoted, you can turn the accepted quote into an invoice so the lines, rates and customer details carry across rather than being typed again.
When to split labour and materials
On a straightforward customer invoice, splitting labour and materials helps the customer check the bill. Under CIS it matters to the deduction.
HMRC’s CIS guide says the deduction is taken from the part of the payment that does not represent materials supplied by the subcontractor. It does not apply to VAT either.
Use separate lines for:
- labour or the labour element of a priced package
- materials you paid for
- plant and equipment hire
- other agreed costs
Do not guess the CIS treatment from the word “builder”. CIS depends on the parties and the contract. The contractor verifies the subcontractor with HMRC and applies the rate HMRC gives them.
CIS construction invoice example
Now take the same £4,200 job and assume it is a subcontractor invoicing a main contractor. The subcontractor is on the 20% CIS rate and the £3,000 labour figure is subject to deduction.
| Description | Amount |
|---|---|
| Labour: partition framing and first fix | £3,000.00 |
| Materials: timber, board and fixings | £1,200.00 |
| Gross invoice subtotal | £4,200.00 |
| CIS deduction: 20% of £3,000 labour | -£600.00 |
| Amount due | £3,600.00 |
The deduction is £600, not £840. The £1,200 of materials is left out of the CIS calculation.
The invoice should make the gross amount, deduction and net amount due easy to follow. The contractor’s payment and deduction statement is separate paperwork; the invoice does not replace it.
Sendinvo’s CIS invoice screen lets you set your rate, enter the labour figure and show the gross total, CIS deduction and net due on one document. It does not verify subcontractors, file CIS returns or produce payment and deduction statements.
When the VAT domestic reverse charge applies
The VAT domestic reverse charge can apply to standard- or reduced-rate building and construction services reported under CIS when the relevant businesses are UK VAT registered. It does not apply to every building job.
HMRC lists the covered work and exclusions in its domestic reverse charge guidance. Check the customer’s status and whether they are an end user before choosing the VAT treatment.
When it applies, the supplier does not add the reverse-charge VAT to the cash amount due. The invoice needs to make clear that the customer accounts for the VAT. The rate or VAT amount must still be shown in the way HMRC requires.
Using the same figures:
- labour: £3,000
- materials: £1,200
- reverse-charge VAT at 20%: £840 for the contractor to account for
- CIS deduction at 20% of labour: £600
- cash amount due to the subcontractor: £3,600
The CIS deduction and reverse-charge VAT are different calculations. CIS uses the labour amount. Reverse-charge VAT is worked out on the taxable supply. Do not use one figure as the base for the other.
If both apply, Sendinvo can add the VAT reverse-charge wording alongside the CIS calculation. The customer sees the VAT they must account for, but it is not added to the amount they pay you.
Applications, stage payments and retentions
Construction payments often start with a valuation or application. The final invoice still needs its own unique number, invoice date, supply date or period, description and amount due.
For each application, show:
- the application or valuation number
- the period or milestone covered
- the value of work completed for this claim
- any previously invoiced amount
- retention, if the contract provides for it
- the amount being invoiced now
Do not silently subtract retention from the bottom line. Label it and make sure the calculation follows the contract. If the job is direct to a homeowner and uses deposits or staged payments rather than CIS, a payment plan can put the dates and amounts on the invoice.
Payment terms that accounts teams can act on
“Due on receipt” is a term, but it may not match the contract or purchase order. State a calendar due date as well as the agreed term.
Include:
- the due date
- bank details and the exact payment reference
- the purchase-order number where required
- the email address for payment queries
- the documents sent with the invoice, such as a signed worksheet or valuation
Send the invoice to the address the customer uses for accounts, not only to the site contact. If payment has not arrived, scheduled invoice reminders can follow up using the dates you set.
Final check before sending
Run through this list while the job is still fresh:
- Is the invoice number unique?
- Do the legal business names and addresses match the parties being billed?
- Is the site or project named?
- Are the invoice and supply dates both present?
- Can the approver match each line to the quote, variation or valuation?
- Are labour and materials separate where CIS applies?
- Has the contractor confirmed the CIS rate?
- Is the VAT treatment correct for this customer and supply?
- If the reverse charge applies, is the required wording and VAT rate or amount shown?
- Do the subtotal, deduction and amount due add up?
- Is the due date clear?
- Are the payment reference and supporting documents included?
A construction invoice template gets the fields in the right order. What matters is choosing the correct version for the job: standard VAT, CIS, reverse charge, or CIS and reverse charge together.
Start a free Sendinvo account to create the invoice, split labour from materials and show the amount due without keeping a second spreadsheet.