A stage payment invoice charges one agreed part of a building job when its milestone or due date is reached. It should show the current stage, the original job value, previous payments and the balance remaining.
Use this 2026 template for domestic building work, installations or subcontract packages.
This is general information, not legal or tax advice. Follow the contract, quotation and payment schedule agreed for the job.
Stage payment invoice template
[Your legal business name and address]
[Company number and VAT number, where applicable]
Bill to: [Customer’s legal name and address]
Site: [Job address]
Quote or contract: [Reference]
Invoice number: [Unique number]
Invoice date: [Date in 2026]
Supply date or period: [Date or stage period]
Payment due: [Date in 2026]
Stage: [Deposit / first fix / second fix / completion]
Milestone reached: [Plain description of completed work]
| Payment summary | Amount |
|---|---|
| Agreed job value | £[ ] |
| Approved variations to date | £[ ] |
| Revised contract value | £[ ] |
| Previously invoiced | -£[ ] |
| Current stage value | £[ ] |
| VAT [if applicable] | £[ ] |
| CIS deduction [if applicable] | -£[ ] |
| Amount due now | £[ ] |
| Balance remaining after this invoice | £[ ] |
Payment reference: [Invoice number]
Attached: [Photos, valuation, signed sheet or certificate]
Worked stage payment example
A 2026 bathroom and utility-room project has an agreed value of £12,000 including VAT. The payment plan is:
| Stage | Trigger | Amount |
|---|---|---|
| Deposit | Quote accepted | £2,400 |
| First fix | Plumbing and electrical first fix complete | £3,600 |
| Second fix | Units, sanitaryware and fittings installed | £3,600 |
| Completion | Testing, snagging and handover complete | £2,400 |
The second invoice is not for £12,000. It charges the £3,600 first-fix stage and shows £6,000 remaining after that payment.
Name the milestone clearly
“Stage 2” is not enough on its own. State what has happened:
- foundations poured to the drawing
- roof made watertight
- first-fix plumbing and electrical work complete
- plastering complete and ready for decoration
- testing, snagging and handover complete
This gives the customer a checkable reason for the invoice. It also helps later if the timing of a payment is disputed.
Deposit invoice versus stage invoice
A deposit is usually the first stage. State whether it is part of the agreed total.
The deposit invoice should say:
- the total quoted value
- the deposit amount
- what the deposit secures or funds
- its due date
- the remaining balance
- the next milestone
Do not make the deposit look like an extra charge on top of the quote. The builders quotation template shows how to agree stages before work starts.
Record previous invoices, not only payments
A stage summary should distinguish between:
- contract value
- approved variations
- amount previously invoiced
- amount previously paid
- current amount being invoiced
- balance still to invoice
If an earlier invoice is unpaid, do not silently add it to the new stage. Show the current invoice separately and send a statement or reminder for the overdue amount.
Handle variations separately
An agreed change should have its own reference, description and value. Add it to the revised contract value and show whether it is included in the current stage.
For example:
| Variation | Status | Value |
|---|---|---|
| VO-03: relocate utility sink | Approved 12 June 2026 | £420 |
| VO-04: additional wall units | Awaiting approval | Not invoiced |
Do not bill an unapproved variation as though it were part of the original quote.
Retention on stage payments
If the contract provides for retention, show the percentage or fixed amount and the balance held. Do not bury it inside the labour figure.
| Current valuation | £8,000 |
|---|---|
| Retention at 5% | -£400 |
| Amount before VAT and CIS | £7,600 |
The release date and conditions come from the contract. A domestic job without an agreed retention should not acquire one because a template contains the field.
CIS stage invoices
A subcontractor may submit monthly applications or stage invoices under CIS. Split labour from materials on each invoice and show the verified deduction rate.
For a stage containing £4,000 labour and £1,500 qualifying materials at 20%:
| Calculation | Amount |
|---|---|
| Gross stage value | £5,500 |
| CIS deduction: 20% of £4,000 labour | -£800 |
| Net due before any normal VAT collected | £4,700 |
Use the subcontractor invoice template for purchase orders, valuations and supporting documents.
VAT and reverse charge
Choose the VAT treatment for the customer and supply. The VAT domestic reverse charge does not apply to every construction invoice.
Where normal VAT applies, add VAT to the current taxable stage. Where the domestic reverse charge applies, show the required wording and the VAT the customer accounts for without adding it to the cash due.
The VAT reverse charge invoice example sets out the layout for 2026.
Payment reminders for stages
A reminder should follow the due date of the current stage, not the final completion date. When the stage is paid, the reminder for that amount stops.
Do not chase a stage that has not been reached. If the date moved, update the plan before the invoice is sent.
Stage invoice check
- Does the milestone match the accepted quote or contract?
- Is the site and job reference present?
- Is only the current stage being charged?
- Are previous invoices and the remaining balance visible?
- Are approved variations separate?
- Is retention shown only where agreed?
- Are VAT and CIS calculations correct?
- Does the due date match the payment plan?
- Are supporting documents attached?
Sendinvo prints deposits and stages with their own amounts and due dates. Create a free account to set the plan and keep each payment tied to the milestone agreed in 2026.