Contractor invoice template
Bill day rates, milestones or a fixed fee with a clean contractor invoice you can make in your browser. Add VAT if you're registered, and — if you work in construction as a subcontractor — switch to the CIS version that handles deductions and the reverse charge.
Saved on this device only — nothing is uploaded.
Invoice details
Your business
Adds your VAT number below, plus VAT columns and a VAT section.
Stored on your device only and embedded in the PDF. PNG or JPG, under 1MB.
Bill to (your client)
VAT
CIS (construction)
Domestic reverse charge
Appearance
Items
Discount, deposit & payment
Receiving a deposit can create a VAT tax point. Check HMRC guidance if unsure.
Your business name
Invoice
INV-0001
Bill to
Client name
- Invoice date
- 15/06/2026
| Description | Qty | Unit | VAT | Net |
|---|---|---|---|---|
| — | 1 | £0.00 | 20% | £0.00 |
- Net total
- £0.00
- VAT 20%
- £0.00
- Total VAT
- £0.00
- Total
- £0.00
Day rates, milestones and retainers
Contractors usually bill a day rate (e.g. 5 days @ £400), a milestone on delivery, or a monthly retainer. Use one line per item so the client can see exactly what they're paying for. If you're VAT registered, the tool shows the VAT and the gross total; if not, leave VAT off.
CIS and the VAT reverse charge
If you work as a subcontractor for a contractor on construction work, the Construction Industry Scheme applies: the contractor deducts CIS tax from the labour part of your invoice (20% if you're registered and verified, 30% if not, 0% with gross payment status) and pays it to HMRC on your behalf. Materials and VAT are never part of the deduction.
For most VAT-registered business-to-business construction work you also have to apply the domestic reverse charge — you show the VAT but don't add it to the total, and your customer accounts for it to HMRC. Working direct for a homeowner? Then neither CIS nor the reverse charge applies — it's a normal invoice.
Doing subcontract work? Use the CIS invoice generator, which works the deduction and reverse-charge wording out for you. As a contractor billing a private customer, the standard invoice on this page is what you want.
A typical contractor invoice
Example line items you might add:
- Development — 5 days @ £450
- Milestone 2: integration delivered — £2,000
- Monthly retainer — September
Frequently asked questions
Do contractors charge VAT on invoices?
Only if you are VAT registered. Many contractors register (voluntarily or because they are over £90,000 turnover) and add 20% VAT; if you are not registered, invoice with no VAT.
I'm a construction subcontractor — is this the right template?
For billing a homeowner directly, yes. If you invoice a contractor for construction work, use the CIS invoice generator instead — it applies the CIS deduction and the VAT domestic reverse charge.
How should a contractor handle expenses?
Add reimbursable expenses as separate lines from your fee. If you are VAT registered, VAT treatment follows the type of expense — keep them itemised so the client can see what they cover.