Contractor invoice template for United Kingdom

Contractor and trades invoices need to show labour, materials and any deposit clearly, because clients often compare them with the quote. This template is set up for United Kingdom: GBP currency and the right tax label. United Kingdom invoices usually include VAT (standard rate 20 percent), which this template adds for you.

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Example contractor invoice in GBP

Description	Qty	Rate	Amount
Labour: bathroom tiling (hours)	16	£45.00	£720.00
Materials: tiles and adhesive	1	£380.00	£380.00
Skip hire	1	£120.00	£120.00
Subtotal			£1,220.00
VAT 20%			£244.00
Total			£1,464.00

In this sample the subtotal is £1,220.00, VAT at 20 percent adds £244.00, and the total is £1,464.00. Sample figures only.

What a United Kingdom invoice must include

A unique, sequential invoice number and the invoice date
Your business name, address and VAT registration number
The customer's name and address
The date of supply if different from the invoice date
A description of goods or services, the net amount, the VAT rate and the VAT amount
The total amount payable in pounds, and your payment terms

What a contractor invoice should show

Job address and a short description of the work completed
Labour as hours and hourly rate, or a fixed price per task
Materials listed separately, with receipts kept on file
Any variation to the original quote, with the reason
Deposit or stage payments already received
Your licence or registration number where required locally, and payment terms

Getting paid in United Kingdom

Common ways to pay are UK bank transfer (sort code and account number) or card payment. Typical payment terms: 30 days is the common default, and many businesses use 14. UK law allows statutory interest and fixed compensation on overdue business-to-business invoices in many cases. Check the details on GOV.UK.

Mistakes to avoid

One lump sum with no breakdown, which invites disputes.
Not recording changes the client asked for during the job.
Charging VAT when you are not VAT-registered.
Missing the VAT number on a VAT invoice.

Practical tips

On bigger jobs, use stage invoices: deposit, progress payment, final payment. Refer to the quote number on each invoice so the client can follow the history.

The standard VAT rate is 20 percent, with reduced and zero rates for some goods and services. Registration is compulsory once taxable turnover passes the government threshold, and the figure is updated from time to time, so check GOV.UK. Under the UK late payment law, businesses can charge statutory interest and fixed compensation on overdue invoices between businesses, unless contract terms provide a substantial alternative remedy.

Frequently asked questions

Should I invoice materials separately?

Yes, in most cases. It is transparent for the client and easier for your bookkeeping. Add a markup only if it was agreed in the quote.

How do I invoice a job in stages?

Create one invoice per stage, reference the quote number, and show payments already received on each new invoice.

Do I need to be VAT-registered to send an invoice in the UK?

No. Only VAT-registered businesses charge VAT. Others can still send normal invoices without VAT.

What must a UK VAT invoice include?

A sequential number, your VAT number, dates, customer details, description, net amount, VAT rate and VAT amount, and the total.

Related templates

Last reviewed: October 2026. This page is general information, not legal, tax or accounting advice. Rules and rates change, so check HMRC on GOV.UK before relying on it.