Basement ConversionCellar ConversionDig-out BasementCISVATInvoice Template

Basement conversion invoice template UK (2026): CIS, VAT and stages

By InvoiceAdept Editorial6 September 2026Updated 6 September 202627 min read

A basement conversion invoice has to explain what was surveyed, dug out, strutted, waterproofed, steeled, boarded, wired and finished - not a vague "basement done" line. "Supply and convert basement as agreed" does not tell a householder whether they got a dig-out under an existing floor, a fit-out of an existing cellar, a Type A tanking membrane, a Type B structural concrete waterproofing system, a Type C cavity-drain system, a new staircase, underfloor heating or a plant room. It does not tell a main contractor's QS which plot, purchase order or basement package to release. It does not tell a CIS contractor how much is labour and how much is the direct cost of excavation spoil, temporary works, waterproofing membranes, sump pumps, steels, insulation, plasterboard, electrics, plumbing and waste you paid for.

Basement conversions are not loft packages, not garage conversions and not a simple rear extension above ground - use the loft conversion, garage conversion and extension templates when those are the product. This page covers converting or creating below-ground living or ancillary space on a UK dwelling: dig-out under an existing house, fit-out of an existing cellar or undercroft, waterproofing packages (Type A / B / C), structural works, staircases, services and finishes. A basement-plus-rear-extension hybrid should name both scopes clearly.

Who pays matters. Billing a private householder for a basement on their own home: normal invoice, no CIS. Billing a main contractor, developer or refurbishment principal for construction operations: often CIS. HMRC's CISR14100 treats alteration, repair or extension of a building as construction operations (Finance Act 2004 section 74(2)(a)). Basement conversions that alter or extend an existing dwelling when a CIS contractor pays you usually sit there. Dig-out and earthworks packages often engage CISR14020 (construction operations including excavation and earthworks). When basement works form part of a wider preparatory or finishing package (tanking, linings, plastering, second fix), CISR14240 is also relevant. Plant and machinery used on site can engage CISR15060 when you are claiming materials treatment carefully. Soften if you only manufacture or deliver waterproofing kits or steels with no install - CISR14220 keeps manufacture/delivery of building components alone outside CIS. Supply-plus-install can pull the whole payment into CIS (CISR14020 / CISR14030). Private householders are not CIS contractors - see the public CIS overview.

VAT is separate. If you are VAT-registered, an ordinary basement conversion in an occupied existing dwelling is usually standard-rated at 20%. Soften absolute claims about VAT Notice 708; reduced (5%) or zero rates are exceptional and only apply when narrow conditions are met - get professional advice before claiming them. Never reverse-charge a private householder. Design and structural-engineer fees are usually standard-rated even when some construction services on a project are reduced-rated.

This guide gives copy-paste fields, a labour/materials split for basement packages (including dig-out spoil, Type A/B/C waterproofing, steels and staircase deposits), stages from survey and temporary works through dig-out, waterproof, structure, first fix, finishes and snag, three worked examples and a practical treatment of CIS, VAT and domestic reverse charge. Figures are illustrative only, not UK market rates or a price list. InvoiceAdept does not decide CIS or VAT status and does not file CIS300, VAT returns, Making Tax Digital updates or Self Assessment to HMRC. It does not issue Building Control completion certificates, planning permissions, Party Wall awards or structural engineer certificates.

Related templates: builder, extension, garage conversion, loft conversion, orangery, electrician, plumber, deposit invoice, domestic reverse charge, how to invoice a UK client as a tradesperson, retention, variation orders and InvoiceAdept vs InvoiceFree. This page focuses on residential basement and cellar packages - dig-out, fit-out, waterproofing Types A/B/C, structure, stairs, services and finishes - not commercial deep basements as the main product.

Rules and links were checked for this guide on 6 September 2026. General information only, not tax, legal, Building Regulations, Party Wall, waterproofing design or structural engineering advice. InvoiceAdept is from Tech Me Today Ltd, Companies House 15917255, ICO ZB944663.

In short

Start by identifying who pays you, what basement package you supplied or installed (dig-out under existing floors, fit-out of an existing cellar, waterproofing-only, or full turnkey), which waterproofing type (A tanking, B structural concrete, C cavity drain), whether temporary works and spoil removal are included, and whether the contract is supply-only or supply-and-install.

Private householder, own-home basement conversion: no CIS. The householder is not a CIS contractor. If VAT-registered, an ordinary basement / cellar conversion at an existing lived-in home is usually 20%. Show survey, temporary works / propping, dig-out / spoil, waterproofing (Type A / B / C named), structure / steels, staircase, insulation, plasterboard, first/second fix, electrics, plumbing, underfloor heating if included, waste/skip, Building Control fee if charged, and snag clearly. Do not claim "VAT free" because it is a basement or because waterproofing was involved.

Basement package for a CIS contractor: typically within CIS when a contractor pays you for alteration or extension of a building (CISR14100). Cite CISR14020 when dig-out / excavation / earthworks are a material part of the package. Cite CISR14240 when works sit inside a wider finishing or preparatory package (tanking linings, plastering, second fix as part of the project). Split labour from materials at direct cost (CISR15060 / CISR15090). For waterproofing membranes, sump kits, steels and staircases purchased complete, materials are usually the purchase cost; labour is dig, install, board and finish.

Manufacture and delivery of materials only (no install): generally outside CIS (CISR14220). A mixed contract that supplies membranes, steels or kits and includes installation can pull the whole contract into CIS (CISR14020 / CISR14030).

VAT reduced rate (5%) or zero: only when Notice 708 conditions are actually met. Ordinary basement conversions in an occupied dwelling stay 20%. Never reverse-charge a householder. Never invent 0% or 5% for a normal dig-out or cellar fit-out without professional advice and clear Notice 708 evidence.

Take a deposit before ordering waterproofing systems, steels, staircases, underfloor heating or specialist plant if your terms require one. Number and invoice that deposit. Then use recognisable stages: survey / temporary works, dig-out / earthworks, waterproofing, structure, first fix, finishes / snag. Keep variations for extra rooms, upgraded Type C systems, lightwells or staircase changes separate from the agreed basement package.

Use the invoice generator for a first invoice. InvoiceAdept Free is £0 for five invoices per month. Pro is £7.99 excl VAT and includes WhatsApp send. Pro+ is £12.99 excl VAT and includes CIS. Stripe's own fees apply (UK cards 1.5%+20p), but InvoiceAdept adds no platform fee.

Who this basement conversion invoice template is for

This template is for UK basement and cellar specialists, builders who deliver basement packages as a defined product, waterproofing contractors, groundworkers who dig out under existing dwellings, and subcontractors who prop, excavate, tank, steel, board, wire or finish below-ground rooms and need readable invoices for householders, landlords, builders and housing clients. It covers the paperwork pattern, not a price list and not a Building Control, Party Wall or structural certificate.

  • Basement conversion specialists (dig-out under existing floors, existing-cellar fit-out, lightwell packages)

  • Waterproofing contractors billing Type A tanking, Type B structural concrete or Type C cavity-drain systems

  • Groundworkers and excavation crews digging out, mucking away and forming temporary works under dwellings

  • Structural / steel installers billing basement beams, columns, underpinning packages and floor slabs

  • Staircase suppliers and installers billing basement stairs as part of a package (or separately)

  • Insulation, plasterboard and drylining crews on basement linings

  • Electricians billing lighting, sockets, data, extract and consumer-unit works as part of a package (or separately)

  • Plumbers billing wet rooms, bathrooms or plant-room plumbing in a converted basement

  • Subcontractors to main contractors on residential basement packages

  • Sole traders and limited companies who need CIS and VAT lines that match the payer

If your day job is a full rear extension without a basement brief, a garage conversion, a loft conversion, a porch, an orangery, or stand-alone electrics/plumbing with no basement focus, use those related guides and come back here for basement-specific lines (temporary works, dig-out, Type A/B/C waterproofing, sump pumps, lightwells, basement stairs and Party Wall notes).

Three basement jobs, three invoices

These three jobs can use similar waterproofing and steels but need different invoice logic.

Domestic householder basement

Contractor basement package

Materials-only / supply-only caution

Customer on invoice

Private householder

Builder, developer or specialist principal

Builder, merchant customer or householder

Contract

Survey, temporary works, dig-out, waterproof, structure, stairs, services, finishes, snag

Basement package to named plots or addresses

Supply membranes / steels / stairs delivered; no install

CIS

No. Householder is not a CIS contractor.

Usually within CIS as alteration/extension of building - CISR14100; CISR14020 if dig-out; CISR14240 if finishing/prep package

Generally outside CIS (CISR14220) - unless mixed with install

Labour/materials

Helpful for clarity

Essential for correct deduction; membranes/steels/stairs/spoil at direct cost

Materials supply lines; no CIS labour block

VAT if registered

Usually 20% at an existing lived-in home

Normal VAT or reverse charge depending on tests

Usually standard-rated supply

Key references

Public CIS guide

CISR14100; CISR14020; CISR14240

CISR14220; CISR14020 / CISR14030 if later install added

What often bounces it

"Basement done" with no dig-out vs fit-out, waterproofing type or deposit credit; "VAT free" myth

Missing UTR, plot/PO, labour/material split; claiming free-issue membranes as your materials

Treating supply-only as CIS labour; then adding install under same contract without revisiting mixed rules

A main contractor can be the CIS contractor even when the finished basement serves a tenant or homeowner. If the builder engages you, your invoice is to that builder. That contractor-to-subcontractor payment is the one to test. If the householder hires and pays you directly, the householder invoice has no CIS. Landlords who engage you as principal for works on a tenanted dwelling are still not automatically CIS contractors - CIS turns on whether the payer is a CIS contractor (including deemed contractors above the construction-spend threshold of more than £3 million in a period of 12 months), not on "landlord" as a label. Never invent CIS deduction on a private householder invoice.

What basement conversion work belongs on the invoice

Do not compress a multi-month basement into "supply and convert basement". Describe survey, temporary works, dig-out, waterproofing type, structure, stairs, services and finishes, and what another firm supplied.

Line-item family

Useful description

Clarify

Survey / design

Measured survey, quote reference, design drawing, structural engineer note, waterproofing design note

Survey date; invoice is not planning, Building Control or Party Wall approval

Party Wall / neighbour notices

Fee or attendance if you charged for serving / coordinating notices (rare - usually client's surveyor)

Who is the appointed surveyor; invoice is not a Party Wall award

Temporary works / propping

Acrow props, needle beams, temporary support to existing floors and walls

Hire period; ticket / drawing reference

Dig-out / excavation

Excavate under existing floor / enlarge cellar; form formation

Spoil volume (illustrative); muck-away method; may engage CISR14020 when contractor-paid

Spoil / muck-away

Tip charges, grab lorries, skips for excavated material

Included or by others; contamination notes if applicable

Underpinning / mass concrete

Underpin sequence if part of package

Bay sequence; structural engineer design reference

Waterproofing Type A

Tanking slurry / membrane applied to structure

Product; coverage; guarantee note is not a Building Control cert

Waterproofing Type B

Structural waterproof concrete / additive system

Spec; pour dates; free-issue vs your purchase

Waterproofing Type C

Cavity-drain membrane, channels, sump, pump, battery backup

Product; sump location; service contract note if separate

Structure / steels

RSJs, columns, new basement slab, retaining walls

Section sizes; free-issue vs your purchase

Lightwells / pavement lights

Dig and form lightwell, drainage, glazed cover

Planning / highway notes if relevant - invoice is not consent

Staircase

Supply and install basement stair, handrail, fire-performance notes as specified

Model; free-issue vs your purchase

Insulation

Walls, floor, ceiling insulation as specified

Product and thickness; finishing package may engage CISR14240

Plasterboard / linings

Internal boards, tape, skim or dryline over waterproofing

Included vs client-supplied; do not claim boards as CIS materials if free-issue

First fix

Electrics first fix, plumbing first fix, UFH pipework if included

Part P / competent person note - invoice is not the certificate

Second fix

Sockets, lights, switches, sanitaryware, joinery, UFH manifold

Spec; free-issue fittings noted

Electrics

Lighting, sockets, data, extract, consumer unit works

See electrician if billed separately

Plumbing

Waste, hot/cold, WC, basin, shower if wet room/bathroom

See plumber if billed separately

Floor finishes

Screed, floating floor, vinyl, engineered timber as package

Included vs by others

Waste / skip

Skip hire for strip-out and fit-out waste (separate from dig spoil if useful)

Included or by others

Building Control fee (if charged)

Fee paid to local authority or approved inspector / registered building control approver

Receipt reference; not a completion certificate

Snag / retention release

Touch-ups; retention release line

Reference practical completion

Conversion types to name clearly on the face of the invoice

Type

Typical invoice wording

CIS note (when contractor pays)

VAT caution if registered

Dig-out under existing house

Dig-out basement under existing ground floor as drawing ... including temporary works and spoil

Usually CISR14100 alteration/extension; dig-out often CISR14020 earthworks

Usually 20% on occupied existing home

Existing cellar fit-out

Fit out existing cellar to habitable room as drawing ... including Type C waterproofing

Usually CISR14100; finishing may engage CISR14240

Usually 20%; "habitable" label does not create VAT-free claim

Type A tanking package

Supply and apply Type A tanking system to basement walls/floor as spec ...

Usually CISR14100 / CISR14240 when part of construction package

Usually 20% on occupied dwelling

Type B structural waterproofing

Supply and construct Type B waterproof concrete basement structure as drawing ...

Usually CISR14100; structural works within construction ops

Usually 20% on occupied dwelling

Type C cavity-drain package

Supply and install Type C cavity-drain membrane, channels, sump and pump as drawing ...

Usually CISR14100 / CISR14240

Usually 20%; pump service contracts may be separate

Basement with lightwells

Basement conversion including front/rear lightwells as drawing ...

Usually CISR14100; excavation CISR14020

Usually 20%; highway/planning notes are not consent

Basement wet room / bathroom

Basement conversion including bathroom / wet-room package as drawing ...

Usually CISR14100; plumbing may sit in finishing package

Usually 20%; wet-room label does not change ordinary dwelling VAT

Plant room / utility basement

Convert / form basement plant room / utility as drawing ...

Usually CISR14100

Usually 20% on occupied home site

What a UK basement conversion invoice must include

A UK basement invoice still needs the ordinary invoice essentials plus basement-specific clarity. Missing fields are what bounce payments and CIS statements.

Field

Why it matters on a basement job

Your trading name and address

Identifies the subcontractor or supplier

Customer name and address

Householder vs contractor - drives CIS logic

Invoice number and date

Sequential numbering; tax point for VAT

Unique Taxpayer Reference (UTR)

Needed when a CIS contractor deducts

Company number / VAT number

If limited company / if VAT-registered

Site address and description

Plot, house number, dig-out vs cellar fit-out

Purchase order / contract reference

Main contractor QS release

Description of works

Temporary works, dig-out, waterproofing type, structure, stairs, services, finishes

Labour vs materials split

CIS deduction base when contractor pays

VAT treatment

20% usual on occupied dwelling; reverse charge only when tests met

CIS statement lines

Gross, materials, labour, deduction rate, net if deducted

Deposit credits

Numbered deposits already paid

Stage / retention references

Which stage; retention % held

Payment terms and bank details

How and when to pay

Building Control / Party Wall note

Fee lines if charged; state invoice is not a certificate or award

For the general trades pattern, see how to invoice a UK client as a tradesperson.

Copy-paste basement invoice fields

Use this as a checklist when you build the invoice in InvoiceAdept or another tool. Replace bracketed prompts with your job facts. Figures below in worked examples are illustrative only.

Invoice number: [INV-####]
Invoice date: [DD Month YYYY]
Tax point: [same as invoice date unless deposit/tax-point rules differ]

From:
[Trading name]
[Address]
UTR: [if CIS]
VAT number: [if registered]
Company number: [if Ltd]

To:
[Householder / contractor name]
[Address]
PO / contract ref: [if any]

Site: [full address]
Package: [Dig-out basement / cellar fit-out / Type A/B/C waterproofing / turnkey]
Waterproofing: [Type A / Type B / Type C / combined - product names]
Structural engineer drawing refs: [SE-##]
Waterproofing design refs: [WP-##]

Description of works:
- Survey / temporary works / propping as drawing ...
- Dig-out / spoil / formation as drawing ... (or N/A if existing cellar fit-out only)
- Waterproofing Type [A/B/C] as spec ...
- Structure / steels / slab as drawing ...
- Staircase supply and install as drawing ...
- Insulation, linings, first fix, second fix, finishes, snag as schedule ...

Labour (CIS labour block if contractor): £[amount]
Materials at direct cost (membranes, sump, steels, stairs, insulation, boards, spoil tip fees you paid): £[amount]
Plant hire you paid and reclaim as materials where rules allow: £[amount]
Subtotal: £[amount]
VAT @ 20% (or reverse charge wording if applicable): £[amount]
Deposits credited (INV-deposit-##): £[amount]
Retention held [x]% if any: £[amount]
Amount due: £[amount]

CIS (contractor jobs only):
Gross: £...
Materials: £...
Labour subject to CIS: £...
Deduction @ [0% / 20% / 30%]: £...
Net payable: £...

Payment terms: [14 / 28 days]
Bank: [sort code / account]
Notes: InvoiceAdept does not file CIS300, VAT returns, MTD or Self Assessment.
This invoice is not a Building Control completion certificate, Party Wall award or structural engineer certificate.

Sole trader versus limited company

Sole trader

Limited company

Name on invoice

Your trading name / own name

Company name as at Companies House

UTR

Personal UTR for CIS

Company UTR for CIS

CIS verification

Contractor verifies you

Contractor verifies the company

VAT

Register if taxable turnover exceeds £90,000 (current threshold at last review; older £85,000 figures are stale)

Same threshold test for the company

Bank details

Personal or business account you use for the trade

Company account

Common bounce

Mixing personal and trading names; missing UTR on CIS jobs

Wrong company name; missing company number when client asks

Labour versus materials for basement CIS

When a CIS contractor pays you, deduction is normally calculated on the labour element after allowable materials at direct cost. Getting the split wrong is one of the fastest ways to dispute a remittance.

Category

Usually treat as

Basement examples

Caution

Labour

CIS labour

Dig crew time, temporary works labour, tanking labour, steel install, boarding, first/second fix labour, supervision on site

Do not hide labour inside a single "package" line if the contractor needs a split

Materials at direct cost

Exclude from CIS labour

Waterproofing membranes, channels, sumps, pumps, steels, concrete, insulation, plasterboard, staircase unit you bought, tip fees for spoil you paid

Direct cost only - not selling price markup as "materials"

Free-issue by contractor

Not your materials

Contractor-supplied membranes, steels, stairs, UFH kits

Say "free-issue" on the face; do not claim as your materials

Plant

Facts-specific; see CISR15060

Excavator hire, pump hire, temporary works hire you paid

Follow HMRC materials guidance; do not invent plant as materials if you hired it for convenience only without meeting the rules

Design / SE fees

Usually outside CIS labour if genuinely separate professional fees - facts matter

Structural engineer fee passed through

Do not invent; if you performed the design as part of construction ops, treatment can differ - ask your adviser

HMRC materials guidance for CIS sits in manuals such as CISR15060 and CISR15090. This page is general information, not a substitute for the manuals or a tax adviser.

CIS deep dive: basement conversions as building alteration

For contractor-paid jobs, start with whether the payer is a CIS contractor and whether the operations are construction operations.

CISR14100 - alteration, repair or extension of a building. Basement conversions that create or enlarge below-ground space in connection with an existing dwelling are typically treated as alteration or extension of a building when the facts fit Finance Act 2004 section 74(2)(a). HMRC's CISR14100 is the usual first cite for basement conversion packages billed to a main contractor.

CISR14020 - excavation and earthworks. Dig-out under an existing house, forming excavations for lightwells, and related earthworks often sit within construction operations described in CISR14020. If your package is dig-heavy, name excavation and spoil clearly and expect CIS when a contractor pays.

CISR14240 - finishing operations. Tanking linings, plastering, decorating, second-fix finishes and similar work that finishes a basement as part of a wider construction project can engage CISR14240.

CISR14220 - manufacture and delivery alone. Supplying waterproofing kits, steels or staircases with delivery only and no installation is generally outside CIS under CISR14220. Adding install later under the same mixed contract can pull the payment into CIS - see CISR14020 / CISR14030.

CISR15060 - plant and materials. When you reclaim plant or materials costs against CIS labour, follow CISR15060 carefully. Do not invent categories.

Householders. Private householders are not CIS contractors. Never deduct CIS from a householder payment and never print a CIS deduction block on a householder basement invoice "just in case".

Deemed contractors. Businesses that spend more than £3 million on construction operations in a period of 12 months can be deemed contractors. That threshold is more than £3 million, not £1 million. Older stubs that said £1 million are wrong for current guidance. Facts and HMRC guidance decide status - InvoiceAdept does not decide who is a deemed contractor.

CIS rates (illustrative reminder). If the contractor verifies you and you are registered for gross payment, deduction may be 0%. If registered for net payment, commonly 20% on the labour element after materials. If unverified, commonly 30%. Show the rate the contractor actually applies. InvoiceAdept can help you present CIS lines on Pro+; it does not file CIS300 returns to HMRC.

VAT: ordinary basement in an occupied dwelling versus Notice 708

If you are VAT-registered, treat an ordinary basement conversion in an occupied existing dwelling as usually 20% standard-rated. Waterproofing type (A, B or C), dig-out versus cellar fit-out, or adding a bathroom does not by itself create a VAT-free basement.

VAT Notice 708 sets out when buildings and construction services can be zero-rated or reduced-rated (often 5%). Those rules are narrow. Examples that sometimes appear in basement discussions - such as certain conversions that change the number of dwellings, or qualifying empty-home renovations - need the Notice conditions and professional advice. Soften absolute claims. Do not print "0% VAT - basement conversion" or "5% VAT - dig-out" on an ordinary occupied-home job without evidence that Notice 708 actually applies.

VAT registration threshold. The VAT registration threshold at last review for this guide is £90,000. Older content that still says £85,000 as the current threshold is stale - treat £85,000 only as an explicit warning that it is out of date, not as the live figure.

Tax point on deposits. Taking a deposit before ordering waterproofing systems, steels or staircases can create a VAT tax point on the deposit when you are VAT-registered. Number deposit invoices, state what the deposit is for, and credit them clearly on stage invoices. See the deposit invoice guide.

Design and structural fees. Design, architectural and structural-engineer fees are often standard-rated even where some construction services on a project might qualify for a reduced rate. Do not assume the SE fee inherits a construction reduced rate.

Domestic reverse charge

The domestic reverse charge for building and construction services can apply to VAT-standard-rated supplies between eligible construction businesses when CIS applies and other tests are met. It does not apply to private householders. Never reverse-charge a householder basement invoice. On contractor jobs, check the domestic reverse charge guide and HMRC conditions before printing reverse-charge wording. If reverse charge applies, show the reverse-charge statement instead of charging VAT in the usual way; if it does not, charge VAT normally (usually 20% on occupied dwelling basements).

Building Control, Party Wall, waterproofing and structural - the invoice is not a certificate

Basement work commonly engages Building Regulations (structure, fire, ventilation, drainage, waterproofing performance), Party Wall etc Act procedures where excavations or works affect adjoining owners, and structural engineer design. Your invoice can charge for fees you paid or for attendance, but:

  • InvoiceAdept does not issue Building Control completion certificates or final certificates.

  • InvoiceAdept does not issue Party Wall awards or act as a Party Wall surveyor.

  • InvoiceAdept does not issue structural engineer certificates, waterproofing design certificates or manufacturer guarantees.

  • Naming "Type A / Type B / Type C" on an invoice describes the package - it is not a BS 8102 compliance certificate.

  • A Building Control fee line with a receipt reference is still not the completion certificate.

Keep planning permission, lawful development, Party Wall awards and Building Control sign-off as separate client documents. Cross-link the builder guide for general residential package patterns.

Deposits and staged payments for basement packages

Basement packages are deposit-heavy because waterproofing systems, steels, staircases, temporary works hire and dig plant often need ordering or booking before the first week on site.

Stage (example pattern)

Typical trigger

Invoice tip

Deposit

Client signs; membranes / steels / stairs ordered

Numbered deposit invoice; state what it reserves

Stage 1 - temporary works / dig-out

Props in; dig complete to formation; spoil removed

Credit deposit; show spoil/tip as materials if you paid

Stage 2 - waterproofing

Type A/B/C installed and tested as spec

Name the type; free-issue membranes noted

Stage 3 - structure / stairs

Steels, slab, staircase in

Labour/materials split on contractor jobs

Stage 4 - first fix

Electrics/plumbing/UFH first fix

Competent-person notes are not certificates

Stage 5 - finishes / snag

Linings, second fix, snag list

Retention release as separate line if used

Illustrative only - your contract may use different percentages. See deposit and stage-payment practice in how to invoice a UK client as a tradesperson.

Variations and retention

Basement jobs attract variations: extra lightwells, upgrade from Type A to Type C, additional bedroom fit-out, staircase redesign, Party Wall delays, contaminated spoil, or client-requested wet rooms. Invoice variations as separate lines or separate invoices referenced to a variation order - see variation orders. Do not silently absorb a lightwell into "basement package" if it was not in the agreed scope.

Retention is common on contractor basement packages. Show retention held and retention released as clear lines. See retention. Householder jobs may use a snag holdback by agreement - still write it down.

Document

Role

Basement tip

Quote / schedule of works

Agreed scope before dig

Name dig-out vs fit-out and waterproofing type

Variation order

Extra lightwell, Type C upgrade, wet room

Price and invoice separately

Stage invoice

Payment for completed stage

Credit deposits; CIS split if contractor

Retention invoice

Release retained %

Reference practical completion / certificate dates without claiming you issued Building Control certs

Worked examples A-C

Figures below are illustrative only. They are not market rates, quotes or average UK basement prices.

Example A - householder basement, you VAT-registered (20% VAT, no CIS)

Private householder, occupied home, dig-out under rear reception to form a gym and plant area with Type C waterproofing. You are VAT-registered. No CIS.

Line

Amount (illustrative)

Survey, temporary works and dig-out labour

£8,400

Spoil tip fees and grab hire (direct cost)

£2,100

Type C membrane, channels, sump, pump (direct cost)

£3,800

Steels and slab materials (direct cost)

£4,200

Structure / waterproofing / install labour

£9,600

Staircase supply and install

£2,400

Insulation, linings, first/second fix labour and materials

£6,500

Net subtotal

£37,000

VAT @ 20%

£7,400

Deposit credited (INV-DEP-104)

-£5,000

Amount due

£39,400

No CIS block. Do not reverse-charge the householder. Do not claim 0% because it is a basement.

Example B - householder basement, you not VAT-registered (no VAT, no CIS)

Same householder job shape, but you are under the VAT threshold and not registered. No VAT line. Still no CIS.

Line

Amount (illustrative)

Cellar fit-out labour (existing cellar, no dig-out)

£6,800

Type A tanking materials (direct cost)

£1,450

Linings, electrics first/second fix labour and materials

£4,750

Snag and decorating labour

£900

Amount due (no VAT)

£13,900

Watch the £90,000 VAT registration threshold as taxable turnover grows. Older £85,000 figures are stale. Still never put CIS on a householder invoice.

Example C - main contractor CIS + reverse charge

You subcontract a basement package to a main contractor on a residential site. CIS applies. Assume you are VAT-registered and domestic reverse charge applies on the facts (CIS applies and reverse-charge tests met). Illustrative split:

Line

Amount (illustrative)

Gross package value

£52,000

Materials at direct cost (membranes, steels, stairs, spoil tips)

£18,500

Labour subject to CIS

£33,500

CIS deduction @ 20% on labour

£6,700

Net after CIS (before considering how reverse charge is shown)

£45,300

VAT

Reverse charge - customer accounts for VAT (do not add 20% in the usual way)

Show UTR, verification status, labour/materials split, CIS deduction and the reverse-charge statement clearly. If reverse charge does not apply on the facts, charge VAT normally instead. Never copy this reverse-charge pattern onto a householder invoice. For reverse-charge wording patterns see domestic reverse charge.

Stage payment schedule example (illustrative)

The percentages below are illustrative only - not a recommended price list. Adapt to your contract.

Stage

Illustrative % of contract

Typical evidence before invoicing

CIS tip (contractor jobs)

Deposit

10-20%

Signed contract; membranes/steels/stairs ordered

Deposit still needs clear description; split later stages carefully

Temporary works + dig-out

20-30%

Props in; formation reached; spoil removed

Dig labour vs tip fees as materials at direct cost

Waterproofing complete

15-25%

Type A/B/C installed; smoke/water tests as specified

Free-issue membranes marked; product names on face

Structure + staircase

15-20%

Steels/slab/stair complete

Steels/stair at direct cost if you bought them

First fix

10-15%

Electrics/plumbing/UFH first fix inspected internally

Labour-heavy; materials modest

Finishes + snag

10-15%

Linings, second fix, snag list agreed

Retention often held from this stage on contractor jobs

Retention release

2.5-5% held then released

Snag complete / PC as contract

Separate retention invoice - see retention guide

Householder jobs may simplify to deposit + two or three stages. Contractor jobs often mirror the table more closely. Always credit numbered deposits on the next stage invoice.

Waterproofing Types A, B and C on the invoice (plain English)

British Standard BS 8102 discusses basement waterproofing approaches often summarised as Type A (barrier), Type B (structurally integral) and Type C (drained cavity). Your invoice should name which approach you installed. InvoiceAdept does not certify BS 8102 compliance.

Type

Plain-English package

Useful invoice wording

Common CIS materials lines

Type A

Barrier tanking applied to the structure

Supply and apply Type A tanking system to walls/floor as spec ...

Slurries, sheets, primers at direct cost

Type B

Waterproofing built into the structure (e.g. waterproof concrete)

Construct Type B waterproof concrete basement as drawing ...

Concrete, additives, reinforcement you purchased

Type C

Water managed by cavity drain to sump/pump

Install Type C cavity-drain membrane, channels, sump and pump as drawing ...

Membrane, channels, sump, pump, battery backup at direct cost

Combined

Two types used together (common on dig-outs)

Combined Type [A+C / B+C] waterproofing as waterproofing design WP-...

List each system; do not merge into "tanking done"

If a manufacturer guarantee or insurance-backed guarantee exists, reference the certificate number in a note - still state that your invoice is not that guarantee and not a Building Control certificate.

Householder, landlord and main contractor - who is on the "To" line

Payer

CIS?

Reverse charge?

What to put on the invoice

Private householder (own home)

No

No

Normal invoice; usually 20% VAT if registered; no CIS block

Landlord engaging you directly for a tenanted dwelling

Usually no CIS unless that landlord is actually a CIS contractor / deemed contractor on the facts

No reverse charge to a non-CIS private client

Name the landlord entity; do not invent CIS because "investment property"

Main contractor / developer

Usually yes when construction ops

Maybe - only if domestic reverse charge tests met

UTR, labour/materials, CIS rates, PO/plot

Deemed contractor (construction spend more than £3 million in 12 months)

Can be CIS contractor

Depends on reverse charge tests

Same discipline as other CIS contractors; threshold is more than £3 million, not £1m

Never reverse-charge a private householder. Never copy a contractor CIS layout onto a householder basement invoice.

Planning permission and permitted development - invoice notes only

Some basement dig-outs need planning permission; some cellar fit-outs may rely on existing space without a new planning application; lightwells and pavement lights can engage planning and highway issues. Your invoice can mention "works as planning ref ..." or "client confirms planning / LDC in place" if that is what you agreed - but:

  • The invoice is not planning permission.

  • The invoice is not a lawful development certificate.

  • Charging a planning consultant's fee as a pass-through line does not make InvoiceAdept a planning agent.

Keep planning documents with the client file. Focus the invoice on the construction package actually delivered.

Late payment (brief)

State payment terms on every basement stage invoice. For commercial debts between businesses, statutory interest may be available under the Late Payment of Commercial Debts rules - this is not legal advice. For householders, keep terms clear and follow your contract. Chasing unpaid basement deposits before ordering membranes or steels is ordinary risk control, not a CIS issue.

Making Tax Digital means records, not filing

Making Tax Digital (MTD) for VAT and the staged MTD for Income Tax programme are about digital records and returns you (or your accountant) submit to HMRC. InvoiceAdept helps you create and store invoice records. It does not file VAT returns, MTD updates, CIS300 or Self Assessment for you.

How InvoiceAdept helps basement conversion contractors

  • Create numbered basement invoices with labour/materials lines and deposit credits

  • Free: five invoices per month at £0

  • Pro: £7.99 excl VAT - includes WhatsApp send

  • Pro+: £12.99 excl VAT - includes CIS presentation tools

  • Stripe processes card payments (UK cards commonly 1.5%+20p); InvoiceAdept adds no platform fee on top of Stripe

  • Compare positioning with InvoiceAdept vs InvoiceFree if you are choosing software

InvoiceAdept does not decide whether your basement is CIS or what VAT rate applies. It does not file CIS300, VAT returns, MTD or Self Assessment. It does not issue Building Control, Party Wall or structural certificates.

Quote versus invoice versus retention on contractor basement packages

Document

When

Basement focus

Quote

Before dig / before membranes ordered

Dig-out vs fit-out; Type A/B/C; exclusions (Party Wall, contaminated spoil)

Deposit invoice

On acceptance

Reserves waterproofing / steels / stairs

Stage invoice

As stages complete

Temporary works, dig, waterproof, structure, fix, finishes

Variation invoice

When scope changes

Lightwells, Type C upgrade, wet room

Retention release

After snag / PC

Clear reference lines; not a Building Control cert

Mistakes that bounce basement invoices

Mistake

Why it bounces

Fix

"Basement done" one-liner

QS and householder cannot see dig-out vs fit-out or waterproofing type

Name package type and Type A/B/C

CIS on a householder invoice

Householders are not CIS contractors

Remove CIS block entirely

Claiming 0% or 5% VAT on ordinary occupied-home basement

Notice 708 conditions usually not met

Default to 20% unless adviser confirms Notice 708

Using £85,000 as current VAT threshold

Stale figure

Use £90,000; mention £85,000 only as outdated

Using £1 million as deemed contractor threshold

Wrong

More than £3 million

Free-issue membranes claimed as your CIS materials

Inflates materials, understates labour

Mark free-issue

No labour/materials split on contractor job

Contractor cannot deduct correctly

Split at direct cost

Deposit not numbered or not credited

Double payment disputes

Number deposits; credit on stage invoices

Invoice claiming to be Building Control / Party Wall / SE certificate

Misleading; compliance risk

State clearly it is not

Reverse-charging a householder

Wrong in law for private domestic clients

Never reverse-charge householders

Mixing patio/orangery/garage wording into basement lines

Confuses scope

Keep basement-specific descriptions

FAQ

Does a basement conversion come under CIS?

When a CIS contractor pays you for basement conversion works that are construction operations - typically alteration or extension of a building under CISR14100, often with excavation under CISR14020 - yes, CIS usually applies. Private householder jobs do not.

Does a householder deduct CIS from a basement contractor?

No. A private householder is not a CIS contractor. Never reverse-charge a householder and never deduct CIS on a householder basement invoice.

Are dig-out and existing-cellar fit-outs within CIS for contractor jobs?

Usually yes when a contractor pays for construction operations. Dig-out packages often engage excavation/earthworks language in CISR14020 as well as alteration under CISR14100. Existing-cellar fit-outs still typically sit as alteration/finishing when billed to a CIS contractor.

What if I only supply waterproofing kits or steels with no installation?

Manufacture and delivery alone is generally outside CIS (CISR14220). If you later install under a mixed contract, CIS can apply to the payment (CISR14020 / CISR14030).

How do I treat Type A, Type B and Type C waterproofing on the invoice?

Name the type clearly. Show materials at direct cost and labour separately on CIS jobs. Do not treat the invoice line as a BS 8102 certificate. Combined systems should say so on the face.

What can I treat as materials for CIS on a basement job?

Direct costs of things like membranes, channels, sumps, pumps, steels, concrete, insulation, boards, staircases you bought, and tip fees you paid - following CISR15060 / CISR15090. Not free-issue items. Not inflated selling prices labelled as materials.

Is a basement conversion VAT free in the UK?

An ordinary basement conversion in an occupied existing dwelling is usually 20% if you are VAT-registered. Do not claim VAT-free just because it is a basement. Reduced or zero rates under Notice 708 are exceptional and need professional advice.

When can basement works be 5% VAT?

Only when VAT Notice 708 conditions are actually met (for example certain qualifying conversions or empty-home renovations). Soften absolute claims. Ordinary occupied-home dig-outs and cellar fit-outs stay 20% unless an adviser confirms otherwise.

When does reverse charge apply to basement invoices?

When domestic reverse charge tests are met on contractor-to-contractor construction supplies (including CIS conditions). It never applies to private householders. See domestic reverse charge.

Should I invoice a deposit before ordering waterproofing, steels or stairs?

Yes if your terms require it. Number the deposit, describe what it reserves, and watch VAT tax-point rules if registered. Credit it on later stage invoices. See deposit invoice.

How should I invoice an extra lightwell, wet room or Type C upgrade?

As a variation order line or separate invoice - not buried inside the original package without a reference.

How should dig-out spoil and temporary works appear on my invoice?

Show temporary works / propping and dig-out / spoil as clear lines. Tip fees you paid can sit in materials at direct cost on CIS jobs. Plant treatment should follow CISR15060 where you claim materials treatment.

Does InvoiceAdept file CIS, VAT or MTD returns, or issue Building Control / Party Wall / structural certificates?

No. InvoiceAdept does not file CIS300, VAT returns, Making Tax Digital updates or Self Assessment. It does not issue Building Control completion certificates, Party Wall awards or structural engineer certificates.

What CIS rates should appear if the contractor deducts?

Commonly 0% (gross payment), 20% (net payment) or 30% (unverified) on the labour element after materials - show what the contractor actually applies after verification.

Is the VAT registration threshold still £90,000?

Yes at last review for this guide (6 September 2026): £90,000. Older £85,000 figures are stale and should appear only as an explicit warning that they are out of date.

What is the deemed contractor construction-spend threshold?

More than £3 million on construction operations in a period of 12 months - not £1 million. Facts and HMRC guidance decide status.

Does MTD for Income Tax mean InvoiceAdept files my Self Assessment?

No. MTD is about digital records and returns you or your accountant submit. InvoiceAdept stores invoice records; it does not file Self Assessment or MTD updates for you.

Related guides

About this guide

Last reviewed: 6 September 2026. Written for UK basement and cellar contractors, waterproofing specialists, groundworkers and builders who need clear householder and CIS contractor invoices. General information only - not tax, legal, Building Regulations, Party Wall, waterproofing design or structural advice. Rules change; check GOV.UK and your adviser.

InvoiceAdept is a product of Tech Me Today Ltd, Companies House 15917255, ICO ZB944663.

Bottom line

Name the basement package (dig-out, cellar fit-out, Type A/B/C), split labour from materials on contractor jobs, use 20% VAT on ordinary occupied-home basements unless Notice 708 truly applies, never put CIS or reverse charge on a private householder invoice, and keep Building Control, Party Wall and structural certificates out of the invoice claim. Create your next basement invoice with InvoiceAdept Free (five invoices), Pro (£7.99) or Pro+ (£12.99) - no InvoiceAdept Stripe platform fee.

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