A deposit invoice asks for the agreed first payment toward a job. It should show the full quoted value, deposit amount, remaining balance and what happens after payment.
Use this UK deposit invoice template for building and trade work in 2026.
This is general information, not tax or legal advice. Follow the accepted quote, contract and correct VAT treatment.
Deposit invoice template
Supplier: [Legal business name, address, company number and VAT number]
Customer: [Legal name and address]
Site: [Job address]
Quote: [Accepted quote reference]
Invoice number: [Unique number]
Invoice date: [Date in 2026]
Due date: [Date]
| Payment summary | Amount |
|---|---|
| Agreed job total | £[ ] |
| Deposit due now | £[ ] |
| VAT included in this invoice | £[ ] |
| Amount due now | £[ ] |
| Balance remaining | £[ ] |
Deposit purpose: [Booking, materials or first stage]
Next stage: [Milestone, amount and expected date]
Payment reference: [Invoice number]
Worked example
A 2026 bathroom job is quoted at £9,600 including VAT. The accepted payment plan asks for a 20% deposit.
| Item | Amount |
|---|---|
| Total contract value | £9,600 |
| Deposit at 20% | £1,920 |
| Due now | £1,920 |
| Remaining balance | £7,680 |
The £1,920 is part of the £9,600 total. Later invoices show it as already paid; they do not treat it as an extra charge.
State what the deposit does
Use plain wording:
- reserves the agreed start date
- funds named materials ordered for the job
- forms stage 1 of the accepted payment plan
- becomes due when the quote is accepted
Do not promise a refund, cancellation right or start date unless the agreed terms support it.
VAT on deposits
A deposit can create a VAT tax point. VAT-registered businesses must apply the correct VAT treatment and account for the payment under HMRC rules.
Show whether the amount includes VAT. When later invoicing the balance, make sure the deposit and its VAT are not charged twice.
For construction supplies under the domestic reverse charge, check the correct treatment before issuing the deposit request. The VAT reverse charge example explains the main invoice layout.
Deposits versus part payments
A deposit is normally the first agreed part of the job price. A part payment can also be an instalment against work already completed.
Use the document description that matches the agreement. In every case show:
- original job value
- payment requested now
- payments already received
- remaining balance
- next due event
Link it to the accepted quote
The deposit invoice should repeat the quote number, site and customer. Do not change the scope on the deposit document.
If the customer asks for different work, record a variation or revised quote before changing the payment plan. The builders quotation template sets out the scope and acceptance fields.
Materials deposits
If the deposit funds materials, describe the category without pretending the invoice transfers ownership or creates rights that were not agreed.
Useful wording is:
Deposit toward materials and booking under accepted quote Q-1042. This payment forms part of the quoted total.
Keep supplier orders and customer selections with the job record.
Stage payments after the deposit
Each later invoice should state the milestone, previous amount paid and balance remaining. The stage payment invoice template gives a full 2026 schedule.
Do not raise the second stage merely because a date arrived if the contract ties payment to completed work.
If the job is cancelled
Do not issue an automatic refund or keep the full deposit without checking the agreement and applicable consumer or contract law. Record:
- cancellation date
- work completed
- materials ordered
- amount retained or refunded
- supporting calculation
- credit note where required
Deposit invoice checklist for 2026
- Is the quote accepted?
- Is the customer and site correct?
- Is the deposit part of the stated total?
- Is the VAT treatment correct?
- Is the due date printed?
- Is the next stage named?
- Does the remaining balance add up?
- Are cancellation terms in the agreement rather than invented on the invoice?
Sendinvo’s deposits and payment plans print the deposit and remaining stages with their own dates. Start a free account to keep the invoice tied to the accepted 2026 quote.