A subcontractor invoice has to pass through more hands than an ordinary bill. The site team checks the work, the commercial team checks the valuation and purchase order, and accounts checks the tax treatment and due date.
Use this template to put those checks on one page and send the supporting documents in the same email.
This is general information, not tax or legal advice. Check the contract, purchase order, CIS result and VAT treatment for the specific job.
Subcontractor invoice template
Your details
[Full legal business name]
[Trading name]
[Address, telephone and email]
[Company number, if limited]
[VAT number, if VAT registered]
Contractor and project
Contractor: [Legal name and accounts address]
Site: [Site name and address]
Project number: [ ]
Purchase order: [ ]
Subcontract or package: [ ]
Application or valuation: [Number and period]
Invoice
Invoice number: [Unique number]
Invoice date: [Date]
Supply date or period: [Date or month ending]
Payment term: [Agreed term]
Due date: [Date]
| Work completed | Labour | Materials/other | Total |
|---|---|---|---|
| [Measured work or milestone] | £[ ] | £[ ] | £[ ] |
| [Agreed variation reference] | £[ ] | £[ ] | £[ ] |
| Subtotal | £[ ] | £[ ] | £[ ] |
| VAT [treatment] | £[ ] | ||
| Gross total | £[ ] | ||
| CIS deduction [rate and base] | -£[ ] | ||
| Amount due | £[ ] |
Bank details and payment reference: [ ]
Attached: [signed sheet, valuation, delivery note, photos, certificate or variation approval]
What makes this different from a standard invoice?
UK invoices must contain a unique number, supplier and customer details, a clear description, supply date, invoice date, amounts, applicable VAT and the total owed. The full list is in the government’s invoice requirements.
A subcontractor invoice needs extra job references because the payer is matching it to a subcontract rather than buying over a counter. Add:
- the purchase-order number
- site and project references
- package or trade
- application or valuation number
- period covered
- approved variation numbers
- labour and materials split where CIS applies
- documents required by the contractor’s payment process
These references are not decoration. A missing purchase order can leave the invoice outside the payment run even when the work itself is not disputed.
Match the invoice to the valuation
If the contractor approved a valuation, do not send a one-line invoice with a different description. Use the same work-package names and references.
A simple monthly structure is:
| Valuation | Amount |
|---|---|
| Work completed this period | £8,400 |
| Agreed variations this period | £750 |
| Less retention under the contract | -£457.50 |
| Amount before tax treatment | £8,692.50 |
Only include retention where the subcontract provides for it, and show how the figure was calculated. Do not hide it inside the labour line.
If the valuation contains cumulative totals, make clear what has been invoiced previously and what is being charged now. The current invoice should not rebill the full cumulative value.
Put agreed variations on separate lines
Each variation line should include the contractor’s reference or approval date. For example:
- VO-014: additional fire stopping to riser, approved 22 August
- AI-07: relocate three socket outlets, agreed daywork sheet 118
Attach the signed instruction, email or daywork sheet if the contractor requires it. That gives accounts a direct route from the line on the invoice to the approval.
Show CIS without changing the gross value
Under the Construction Industry Scheme, the invoice still shows the value of the supply. The contractor then pays less after the deduction.
For £4,150 labour and £1,760 materials at 20%:
| Calculation | Amount |
|---|---|
| Labour | £4,150 |
| Materials | £1,760 |
| Gross value | £5,910 |
| CIS: 20% of labour | -£830 |
| Amount due | £5,080 |
HMRC’s CIS guide covers the deduction rules and materials treatment. For a line-by-line copyable document, use the CIS invoice template.
Check the VAT treatment separately
Do not assume that every CIS invoice uses the VAT domestic reverse charge. Check whether the services are covered, whether both parties are VAT registered and whether the customer is an end user or intermediary supplier.
When the reverse charge applies, the customer accounts for the VAT. The supplier’s invoice needs the required indication and must not add that reverse-charge VAT to the cash amount due. Use HMRC’s domestic reverse-charge guidance for the decision.
CIS and reverse-charge VAT use different calculation bases. Keep the labour figure, taxable supply, VAT amount and deduction visibly separate.
Include the payment term and actual due date
Copy the term from the subcontract or purchase order. Then print the calendar due date.
If the contractor works to 45 days, an invoice dated 30 September is not “due soon”; it is due on the date produced by the agreed method. Set the real term so reminders do not start while the account is still within it.
Sendinvo supports on receipt, 7, 14, 30, 45 and 60 days. Read the payment terms guide before choosing wording for a new customer.
Send a complete invoice pack
Before sending, check that the email contains every file the contractor’s procedure asks for:
- invoice PDF
- approved valuation or application
- signed time or daywork sheets
- delivery notes for materials
- completion or test certificates
- variation approvals
- current insurance or compliance documents, where requested
Name the files with the site and reference. “Scan0042.pdf” slows down the person approving it.
Sendinvo can attach the supporting files to the invoice email and retain a clean invoice PDF for the accounts record.
Follow the accounts route, not only the site route
Send the invoice to the contractor’s nominated accounts address. Copying the site manager may help, but it does not replace the stated submission process.
The covering email should state:
- invoice number and site
- amount due
- due date
- purchase-order or valuation reference
- list of attached supporting documents
- who to contact about a query
Use the invoice email templates to keep this consistent without rewriting it after every shift.
Final subcontractor invoice check
- Does the legal customer name match the subcontract?
- Is the PO number present and still valid?
- Does the invoice period match the valuation?
- Are only current-period amounts being billed?
- Are approved variations separately referenced?
- Are labour and materials split for CIS?
- Is the verified CIS rate being used?
- Is the VAT or reverse-charge treatment correct?
- Are retention and previous payments shown correctly?
- Does the due date follow the agreed term?
- Are all required files attached?
- Does the net amount due match what accounts should pay?
Sendinvo is built for this part of the job: quotes, invoices, CIS deductions, reverse-charge wording, due dates, attachments and reminders. It does not verify subcontractors or file the contractor’s CIS return.
Start a free Sendinvo account to prepare the invoice pack and show the contractor the gross value, deduction and net due on one document.