A UK subcontractor invoice should identify who is billing whom, describe the work, show the amount due and give clear payment instructions. Use the blank template below as a starting point, then check whether VAT or Construction Industry Scheme (CIS) rules affect your particular job.
What a subcontractor invoice is for
An invoice is a request for payment and a record of the work or services supplied. A subcontractor may invoice a main contractor, another subcontractor or a business client. The document helps both sides match the agreed work to the amount billed, track when payment is due and keep a record for their accounts.
There is no single mandatory design or government-issued layout for an ordinary subcontractor invoice. A spreadsheet, word-processing document or printed form can work if it is clear and contains the relevant information. VAT-registered suppliers have additional invoice particulars to include, so a basic template may need adapting for a VAT invoice.
An invoice is not the same thing as a quotation, purchase order or payment remittance. A quotation proposes a price, a purchase order records what a client has ordered, and a remittance or payment statement explains what was paid and any deductions. Keeping these documents distinct makes it easier to resolve differences later.
Information to include on the invoice
Make the document easy to identify and check. Include the following practical details:
- Your details: trading or legal name, address and a reliable contact method. If you trade through a limited company, use the company name and other required company particulars as appropriate.
- Customer details: the contractor or client’s name and billing address. Confirm the correct entity and address before sending the invoice, especially where a site name differs from the business that will pay.
- Invoice reference and dates: give each invoice a unique identifying number, the issue date and, where relevant, the date the work was supplied or completed. A consistent numbering sequence helps prevent missed or duplicated entries.
- Work description: explain what you did in terms the customer can match to the contract, order or site records. Include the site or project reference if one was supplied, the relevant period, and quantities or hours where useful.
- Amounts: show the charge for each item, the subtotal, any applicable VAT and the total payable. State the currency if there could be any doubt.
- Payment information: state the due date or payment terms and how the customer can pay. If using bank details, check them carefully and share changes securely.
“Labour” on its own may be too vague if a contractor needs to approve work against a job schedule. For example, “Install 18 metres of first-fix cable at the Westfield Road project, 4–5 October” is more useful than “electrical work”. Do not include work that was not agreed or supplied simply to make an invoice look more complete.
VAT invoices and the construction domestic reverse charge
If you are VAT registered, the invoice generally needs the VAT invoice information required for your circumstances. This commonly includes your VAT registration number, a unique invoice number, the date, supplier and customer details, a description of the supply, the net amount, the VAT rate and VAT charged, and the total including VAT. The tax point and other details may also be relevant. Check current HMRC guidance for the exact requirements that apply to your invoice type.
Do not add VAT simply because a template has a VAT column. If you are not VAT registered, you must not present yourself as charging VAT; show the agreed amount due without a VAT charge. If you are registered, use the correct treatment and rate for the supply rather than assuming every construction service is treated the same way.
Some qualifying construction services between VAT-registered businesses fall under the domestic reverse charge. In broad terms, where it applies, the supplier does not charge VAT in the usual way and the customer accounts for VAT instead. There are conditions and exceptions, including rules concerning end users, so the parties must establish whether the supply qualifies. The invoice should make the reverse-charge treatment clear and include the relevant wording; do not simply leave the VAT fields blank without explaining why.
Where VAT treatment is uncertain, ask a qualified tax professional or check current HMRC guidance before issuing the invoice. A template can organise information, but it cannot determine the correct tax treatment for a particular contract.
CIS deductions and payment statements
The Construction Industry Scheme is a tax-withholding system that can apply to construction contractors and subcontractors. Where CIS applies, the contractor may need to make a deduction from a subcontractor’s payment and account for it under the scheme. The rate and whether a deduction applies depend on the subcontractor’s status and the relevant rules. A subcontractor who has gross payment status may be paid without a CIS deduction, subject to the scheme requirements.
Keep the invoice value for the work separate from the contractor’s calculation of a CIS deduction. In many ordinary arrangements, the invoice records the gross charge for the agreed work, while the contractor’s payment statement shows the deduction and the amount actually paid. The deduction is not the same as VAT and should not be casually entered as a discount or a reduction in the price of the work.
CIS calculations can distinguish labour from materials and may treat costs differently depending on the facts and records. The contractor should provide the required deduction information, and the subcontractor should retain it with the invoice and payment record. If the amount received differs from the invoice total, compare the payment statement with the invoice rather than assuming the invoice itself was wrong.
UK subcontractor invoice template
| Invoice field | Details to complete |
|---|---|
| Supplier name and address | |
| Supplier contact details | |
| VAT registration number, if applicable | |
| Customer or contractor name and address | |
| Invoice number | |
| Invoice date | |
| Work or supply date/period | |
| Project, site or purchase-order reference |
| Description of work or item | Date or period | Quantity or hours | Unit price | Net amount | VAT rate | VAT amount | Line total |
|---|---|---|---|---|---|---|---|
| Invoice total | Amount |
|---|---|
| Subtotal before VAT | |
| VAT, if applicable | |
| Total invoice amount | |
| Reverse-charge note, if applicable | |
| Payment due date and terms | |
| Payment method or bank details | |
| Additional note or attachment reference |
Fictional sample: how the figures can look
Sample only — all names, addresses and references below are fictional. Assume Alex Reed, a VAT-registered sole trader, invoices Example Build Services for two days of agreed installation work. The example assumes standard-rate VAT applies and that the domestic reverse charge does not apply; those assumptions will not fit every job.
- Invoice number: AR-2026-014; invoice date: 12 October 2026; work period: 8–9 October 2026.
- Description: installation labour, 2 days at £250 per day: £500 net. Agreed materials supplied: £85 net.
- Subtotal: £585; VAT at 20% for this fictional example: £117; total invoice: £702.
- Payment terms: due within 30 days; project reference: Example Site 04.
This example shows the arithmetic and the level of detail, not a recommendation about the VAT rate, CIS deduction or payment terms for a real contract. If CIS applies, any deduction and net payment should be reconciled using the contractor’s payment information.
How to prepare and send an invoice
- Check the agreement. Confirm the agreed rate, units, milestones, variations, materials and billing contact. Compare the work completed with any order or sign-off process.
- Record the work accurately. Use dates, quantities, site references and a concise description that lets the customer verify the charge. Attach timesheets or completion records if the contract asks for them.
- Apply the correct invoice treatment. Decide whether VAT applies, whether reverse-charge rules may be relevant and whether the customer needs a particular invoice reference. Deal with CIS deductions through the appropriate process rather than treating them as VAT.
- Check the calculation. Recalculate each line, subtotal, VAT and total. Make sure any deposit or credit is clearly identified and not counted twice.
- Send it to the correct recipient and keep a copy. Follow the customer’s submission method and retain the invoice with related orders, timesheets, payment statements and correspondence.
It is sensible to ask the contractor about its approval timetable before the first invoice. Some clients require a purchase-order number, a particular site sign-off or invoices to reach a named accounts contact. These are practical contract or administration requirements, not a substitute for the relevant invoice particulars.
Common invoice problems to avoid
- Missing references: an invoice without a purchase-order or project reference may be delayed while the customer works out where it belongs.
- Unclear descriptions: a generic line such as “building work” can make approval difficult. Describe the task, period or measurable quantity without adding unnecessary detail.
- Confusing VAT and CIS: VAT is a tax treatment of a supply; a CIS deduction is a withholding from a payment where the scheme applies. They should not be combined into one unexplained figure.
- Incorrect totals: check whether rates are quoted per hour, day, item or project, and whether a stated price is VAT-inclusive or VAT-exclusive under the agreement.
- Changing bank details without verification: unexpected payment-detail changes can be a fraud risk. Confirm changes using a trusted contact route already on file.
- Sending duplicates without marking them: if you resend a copy, label it clearly as a copy and preserve the original invoice number so the customer does not process it twice.
If a customer queries an invoice, keep the discussion factual: identify the disputed line, refer to the order or site record, and issue a clearly referenced correction or credit document if one is needed. Do not silently edit an invoice that has already been sent, because both parties need to understand which version records the transaction.
Keeping invoice records organised
Keep copies of invoices you issue alongside the documents that explain them: contracts or orders, variations, timesheets, delivery records, VAT calculations, payment statements and evidence of payment. A simple folder system can be arranged by year and customer, with filenames that include the invoice number and date. Store records securely and make sure they remain readable and available for the applicable retention period.
Reconcile the invoice total to the amount received. If a CIS deduction or another agreed adjustment explains the difference, retain the supporting statement. If payment is short and no explanation is supplied, ask the customer for a breakdown rather than changing the original invoice without a record. For a tax treatment, disputed deduction or other situation needing individual advice, ask a qualified professional.
Frequently Asked Questions
What should a subcontractor invoice include in the UK?
Include supplier and customer details, a unique invoice number, invoice and supply dates, a clear work description, amounts, any applicable VAT information, the total due, payment terms and a project reference where relevant.
Can I invoice a contractor if I am not VAT registered?
Yes, you can invoice for work without being VAT registered, but you must not charge or describe an amount as VAT. Show the agreed charge and total due clearly.
Should CIS be deducted from my invoice?
Usually, the invoice records the charge for the work and the contractor handles any required CIS deduction when calculating payment. Check the payment statement and keep it with your invoice; individual arrangements and scheme rules can differ.
Does a subcontractor invoice need to show VAT?
If you are VAT registered, show the VAT details required for the supply. Some construction services may use the domestic reverse charge, so VAT might not be charged in the usual way. Confirm the correct treatment before issuing the invoice.
Can I use a spreadsheet or printable invoice template?
Yes. The format is flexible, provided it is legible, has the information relevant to your circumstances and produces accurate totals. Save a copy of each issued invoice and use a consistent numbering system.
What should I do if my invoice is paid short?
Compare the payment with the invoice and request an itemised explanation, including any CIS deduction statement if relevant. Keep the original invoice and record any correction or agreed adjustment separately.