A free UK invoice template built for CIS subcontractors: labour and materials split out, the CIS deduction calculated on labour only, and three VAT versions including the domestic reverse charge wording HMRC requires. Excel and PDF, no email required.
Each Excel file calculates the labour subtotal, materials subtotal, CIS deduction and amount payable for you, with an editable CIS rate cell (20%, 30% or 0%). The PDF versions are print-and-fill.
For VAT-registered subcontractors supplying CIS construction services to VAT-registered, CIS-registered customers. Carries the required wording: "Reverse charge: customer to account for VAT to HMRC", shows the VAT amount for information and adds no VAT to the amount payable.
For VAT-registered subcontractors invoicing end users, intermediaries who have confirmed end-user status in writing, or supplies outside the reverse charge (zero-rated work, non-CIS supplies). Adds 20% VAT to the invoice total in the normal way.
For subcontractors who are not VAT registered. No VAT lines at all: labour and materials split, CIS deduction on labour only, amount payable. If you are not VAT registered, the domestic reverse charge cannot apply to your invoices.
The CIS deduction applies to the labour element only. Materials you personally purchased for the job are excluded from the deduction base, so the contractor needs a clear split to deduct the correct amount. Our guide to CIS invoice splitting covers the rules in detail.
The contractor verifies you with HMRC using your Unique Taxpayer Reference. Showing it on every invoice avoids verification delays and the 30% unmatched rate.
20% for registered subcontractors, 30% if unregistered, 0% with gross payment status. The deduction is calculated on labour excluding VAT. The template applies the rate you set to the labour subtotal automatically.
Standard VAT, domestic reverse charge wording, or no VAT at all, depending on your registration and the customer. Using the wrong treatment is one of the most common CIS invoicing errors.
Invoice number and date, your business name and address, the customer's details, a description of the work, the site or contract reference, and your payment details.
For the full rules on the labour and materials split, including plant hire and what counts as materials, read our guide to CIS invoice splitting.
Standard or reduced rated construction services within CIS, supplied by a VAT-registered subcontractor to a VAT-registered, CIS-registered customer who is not an end user. Since March 2021 this covers most subcontractor-to-contractor invoicing in the supply chain.
You do not add VAT to the amount payable. Instead the invoice states the applicable VAT rate and carries the wording "Reverse charge: customer to account for VAT to HMRC". The customer declares the VAT on their own return and usually recovers it on the same return.
The CIS deduction. It is always calculated on the labour element excluding VAT, so the reverse charge changes who accounts for the VAT, not how the CIS deduction works. Labour and materials are still split in exactly the same way.
Full guides: the reverse charge for subcontractors, for contractors receiving invoices, and how the construction reverse charge works.
Yes, whenever you have supplied materials. The CIS deduction applies to the labour element only, so the contractor needs the split to calculate the deduction correctly. If the invoice shows one combined figure, many contractors deduct on the full amount, which over-deducts you on every job. On a £2,000 invoice with £1,300 of materials, that error costs £260.
It is not a legal requirement, but it is good practice and this template includes it. Showing the expected deduction against the labour line makes the amount payable unambiguous, gives the contractor a figure to check against, and creates a paper trail if the deduction on the payment and deduction statement later differs.
Broadly, when all of these are true: the supply is standard or reduced rated construction services within CIS, both you and your customer are VAT registered, the customer is CIS registered, and the customer is not an end user or intermediary who has notified you of that status in writing. When it applies, you do not charge VAT. You state the VAT rate and the reverse charge wording, and the customer accounts for the VAT to HMRC.
HMRC requires a clear note that the reverse charge applies and that the customer must account for the VAT, for example: "Reverse charge: customer to account for VAT to HMRC." The invoice must also make clear the VAT rate that applies (usually 20%), even though no VAT is added to the total. The reverse charge version of this template includes both.
The CIS deduction is always calculated on amounts excluding VAT. Under a standard VAT invoice, the contractor deducts CIS from the labour element net of VAT, then pays the VAT in full. Under the reverse charge there is no VAT on the invoice anyway, so the calculation is unchanged: deduction rate multiplied by the labour element.
20% if you are registered for CIS, 30% if you are unregistered or the contractor cannot verify you, and 0% if you hold gross payment status. The Excel version has an editable rate cell that recalculates the deduction and amount payable automatically.
Plant hired from a third party, including fuel and consumables for it, can be treated as materials and excluded from the CIS deduction base under HMRC's CIS 340 guidance. Plant you own cannot be excluded. If in doubt, keep the hire invoice as evidence and show the cost on a materials line.
If contractors have been deducting CIS from your materials, or from your full invoice value, the excess is recoverable. We review your deduction statements, correct the position and claim back what you are owed. See our CIS refund service.