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