CIS invoice template for subcontractors
A construction subcontractor's invoice has to do two jobs at once: show the labour the CIS deduction applies to, and handle VAT under the reverse charge.
From: your business
Bill to: your customer
Number, dates and terms
Balance due
£2,780.00
VAT £652.00 under the reverse charge
R. Patel Electrical Ltd
12 Quay Street
Bristol BS1 4DB
accounts@example.co.uk
VAT reg. no. GB 123 4567 89
VAT invoice
| Invoice no. | INV-2026-0001 |
| Date of issue | 17 October 2026 |
| Terms | Net 30 |
| Due date | 16 November 2026 |
Bill to
Westbury Homes Ltd
1 Station Road
Bristol BS2 0AA
| Description | Qty | Unit price | VAT rate | Amount excl. VAT |
|---|---|---|---|---|
| Labour: first fix electrics, plot 7 | 1 | £2,400.00 | VAT 20% | £2,400.00 |
| Materials: cable, back boxes and consumer unit (materials) | 1 | £860.00 | VAT 20% | £860.00 |
| Subtotal | £3,260.00 |
| VAT 20% on £3,260.00 | £652.00 (reverse charge) |
| VAT to be accounted for by the customer | £652.00 |
| Total | £3,260.00 |
| CIS deduction 20% on labour £2,400.00 | −£480.00 |
| Balance due | £2,780.00 |
Reverse charge: customer to pay the VAT to HMRC. VAT Act 1994 Section 55A applies.
Payment details
Bank transfer: sort code 00-00-00, account 00000000 Reference: the invoice number
CIS deduction at 20% on labour. Please send a payment and deduction statement.
Full VAT invoice
All required details present
HMRC, VAT Notice 700/21, section 4
- Present: A sequential number that identifies the invoice
- Present: Your business name, address and contact details
- Present: Full company name as on the certificate of incorporation · Limited company
- Present: Customer name and address
- Present: A clear description of what you are charging for
- Present: Date of the invoice
- Present: Time of supply (tax point), if different from the invoice date
- Present: Your VAT registration number
- Present: For each line: quantity, unit price, VAT rate and amount before VAT
- Present: Reverse charge wording, VAT not added to the amount due · Customer to pay the VAT to HMRC
- Note: Issue it within 30 days of the supply
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Total due
£2,780.00
A subcontractor in the Construction Industry Scheme invoices a contractor who will keep part of the payment, 20% if you are registered for CIS, 30% if you are not, nothing if you hold gross payment status, and pass it to HMRC as an advance on your tax and National Insurance. The contractor works that deduction out from your invoice: the gross amount, less VAT and less the materials you paid for yourself. So a CIS invoice has to separate labour from materials, line by line. If you are VAT-registered and the contractor is too, the domestic reverse charge usually applies to construction services: you state the VAT but do not add it, with wording such as "Customer to pay the VAT to HMRC". This template starts from an electrician's first fix on a new build: £2,400 of labour and £860 of materials. The invoice totals £3,260, VAT of £652 is left for the contractor to account for, the CIS deduction is £480 on the labour, and £2,780 is what lands in your account.
Checked by Radif Partners · Editorial policy · Methodology
The same job under each CIS status
The deduction rate is set by HMRC when the contractor verifies you, not by you. The template lets you pick it so that the balance on your invoice matches what you will receive.
| CIS status | Deduction rate | Deducted on labour | You receive |
|---|---|---|---|
| Registered (net payment status) | 20% | £480.00 | £2,780.00 |
| Not registered | 30% | £720.00 | £2,540.00 |
| Gross payment status | 0% | £0.00 | £3,260.00 |
| Not VAT-registered, registered for CIS | 20% | £480.00 | £2,780.00 |
Being registered for CIS cuts the deduction from 30% to 20%: on this one invoice that is £240.00 more in your pocket now rather than at the end of the tax year.
What goes on each line
Write labour and materials as separate lines and tick "Materials" on the materials. GOV.UK lists what the contractor takes away from the gross before applying the rate: VAT, materials you paid for directly, consumable stores that are now unusable, fuel used other than for travelling, plant hired for the job, and manufacturing or prefabricating materials. Put plant hire and consumables on their own lines too, marked as materials, so the contractor can see them. Keep receipts: the contractor may ask for evidence of what you paid for materials, and without it can estimate the cost itself.
When the reverse charge applies
The domestic reverse charge covers most building and construction services supplied between businesses that are both registered for VAT and where the supply is reported under CIS. It does not apply to a homeowner or any customer outside CIS and VAT, nor when the customer has notified you in writing that it is an end user or an intermediary supplier, nor to supplies of workers by employment businesses. When it applies, the invoice must still be a full VAT invoice, must say that the reverse charge applies and that the customer accounts for the VAT, and must show the amount of VAT due without adding it to the total. The reverse charge guide goes through the end user and 5% disregard rules in detail.
A checklist before you send it
- your name or company name and address, matching the details the contractor used to verify you with HMRC;
- your VAT number and the reverse charge wording, if both of you are VAT-registered and the customer is not an end user;
- a sequential invoice number, the date and the site or plot reference;
- labour and materials on separate lines, with the deduction and the balance shown under the total.
The CIS deduction guide explains how the deductions count against your tax bill and how to reclaim an overpayment.