CIS invoice template UK (2026): 20%/30% rates, labour vs materials, worked example
If you invoice a main contractor in the UK, a normal invoice is often not enough. Under the Construction Industry Scheme (CIS), the contractor may have to withhold tax from the labour element of your payment and pass it to HMRC. If your invoice mixes labour with materials, leaves off your UTR, or blurs who the customer is, you risk a bounce-back, a 30% deduction instead of 20%, or a painful reconciliation later.
This page is the CIS invoice template guide for UK trades subcontractors in 2026. It covers what must appear on the document, how labour versus materials works at a practical level, copy-paste fields, worked 20% and 30% examples, householder jobs (no CIS), VAT and domestic reverse charge reminders, and how InvoiceAdept fits without pretending to file your CIS300. It replaces a thinner version of the same slug. Keep the slug best-cis-invoice-software-uk-2026 - do not create a duplicate post.
This is general information, not tax advice. InvoiceAdept does not decide your CIS status, does not verify subcontractors for you, and does not file CIS300, VAT returns, Making Tax Digital updates, Self Assessment or court claims. Sources to re-check: what is the Construction Industry Scheme, what you must do as a CIS subcontractor, and HMRC manuals such as CISR15060 (materials at direct cost). Soften absolute claims - contract facts matter.
InvoiceAdept is from Tech Me Today Ltd, Companies House 15917255, ICO ZB944663. Free is five invoices a month. Pro is £7.99. Pro+ is £12.99 and is the CIS-ready plan. Figures below are illustrative only, not a price list.
Related: domestic reverse charge invoice UK, how to invoice a client UK tradesperson, deposit invoice template UK, trade templates such as drylining, carpenter, builder, and the free invoice generator.
Checked 13 September 2026.
In short
Contractor pays you for construction operations: usually CIS applies. Show labour separate from materials at direct cost, your UTR, the expected deduction rate (0% / 20% / 30%), the pounds deducted, and the net payable. The contractor still operates CIS and files the CIS300 - your PDF does not replace that.
Private householder pays you for work on their own home: no CIS. Householders are not CIS contractors. Do not paste a CIS block onto a domestic invoice.
Materials you actually bought for the job: generally excluded from the CIS deduction base at direct cost (CISR15060). Free-issue materials from the main contractor are not your cost. Mark-up is not materials.
VAT is separate from CIS. Domestic reverse charge (when it applies) is a VAT mechanism between specified businesses - never reverse-charge a householder. VAT registration threshold is £90,000 (the old £85,000 figure is stale).
Build the invoice in InvoiceAdept's free invoice generator. Pro+ (£12.99) is built for CIS-ready fields. InvoiceAdept does not file CIS300 for you.
Who this CIS invoice template is for
You are... | Use this guide when... | Skip when... |
|---|---|---|
Self-employed subcontractor | You invoice main contractors under CIS | You only invoice householders (still useful for the no-CIS reminder) |
Limited company subcontractor | Company UTR / verification status drives the rate | You need CIS300 filing software - InvoiceAdept does not file |
Main contractor QS reviewing apps | You want readable labour / materials splits | You need HMRC verification tooling |
Accountant / bookkeeper | You need a clean field list for clients | You need formal tax advice (get advice) |
Householder jobs: no CIS block
Who pays | CIS on the invoice? |
|---|---|
Private householder, own home | No - never |
Main contractor / developer / construction business | Usually yes when payment is for construction operations |
Deemed contractor (construction spend tests met) | Often yes when they pay for construction ops - soften; deemed spend test is £3 million, not a fake £1 million |
If the customer is a householder, use a normal invoice: description, amount, VAT if registered, payment terms. Do not invent CIS deductions "for completeness".
What a CIS invoice must include
Field | Why it matters |
|---|---|
Your legal / trading name and address | Identifies the subcontractor |
Client name and billing address | Who pays |
Unique invoice number and date | Matching and records |
Site / job reference | Helps the contractor's application pack |
Description of work | What was done |
Labour amount | CIS base (when CIS applies) |
Materials at direct cost | Carve-out with evidence |
Your 10-digit UTR | Verification / rate |
CIS rate shown (0% / 20% / 30%) | Clarity for both sides |
CIS deduction in pounds | Stops "how much do I pay?" emails |
Net payable after CIS | Cash the contractor should send you |
VAT or reverse-charge wording when applicable | Separate from CIS |
Payment terms and bank details | Cash flow |
Also keep payment and deduction statements the contractor issues - those are HMRC-facing documents on their side. Your sales invoice is not a substitute for their CIS300.
Copy-paste CIS invoice fields
CIS INVOICE
From
[Trading / company name]
[Address]
UTR: [10 digits]
VAT number: [if registered, else "Not VAT-registered"]
Company number: [if Ltd]
To
[Contractor legal name]
[Address]
Invoice number:
Invoice date:
Due date:
Site / job / PO ref:
Description of work:
[What you did, where, which dates]
Labour £
Materials at direct cost (this job; tickets) £
Plant hire from third party (if any; tickets) £
Subtotal (ex VAT) £
VAT (if charged) / reverse charge note £ or wording
Gross for CIS maths (ex VAT) £
Less materials / eligible plant at direct cost £
Amount liable to CIS £
CIS deduction ([0/20/30]% illustrative) -£
Amount payable £
CIS deducted by the contractor is paid to HMRC against this UTR.
This invoice does not replace the contractor's CIS300 return.
Payment: [sort code / account] or pay link
Terms: [e.g. 14 days]Do not delete the CIS lines on contractor jobs even when materials are £0 - show materials as £0.00 so the split is obvious.
CIS deduction rates (illustrative framing for 2026)
Status | Typical rate | On £1,400 labour (illustrative) | Net labour paid (materials extra) |
|---|---|---|---|
Gross payment status | 0% | £0 | £1,400 |
Registered and verified | 20% | £280 | £1,120 |
Not registered / cannot verify | 30% | £420 | £980 |
Rates and verification rules can change - re-check GOV.UK before you rely on a figure. The rate is about registration / verification status, not about whether you are a plasterer or an electrician. InvoiceAdept does not verify you with HMRC.
Labour versus materials: keep the carve-out honest
Item | Usually in CIS labour base? | Note |
|---|---|---|
Your labour / labour-only subcontract | Yes | Core CIS base when CIS applies |
Materials you bought for this job | No - at direct cost | Keep supplier invoices (CISR15060) |
Free-issue materials from MC | Not your materials | State free-issue; nil |
Your mark-up / profit | Stays in labour base | Do not bury mark-up in "materials" |
VAT you charge | Outside CIS base | CIS and VAT are different |
Travelling / subsistence paid to you | Often treated as part of payment liable - soften | Do not invent carve-outs |
Third-party plant hire you paid | Often materials-style with tickets | Soften; keep hire docs |
Soften DIY "invoice splitting" tricks. Mixed contracts that include any construction operations can pull all payments under that contract into CIS - see CISR14020 / CISR14030.
Worked example: same job at 20% vs 30%
Illustrative only. Labour £1,400. Materials at direct cost £600. Not showing VAT for clarity.
Registered / verified at 20%
Line | Amount |
|---|---|
Labour | £1,400.00 |
Materials at direct cost | £600.00 |
Gross | £2,000.00 |
Amount liable to CIS | £1,400.00 |
CIS deduction 20% | £280.00 |
Amount payable | £1,720.00 |
Unverified / 30% on the same labour
Line | Amount |
|---|---|
Labour | £1,400.00 |
Materials at direct cost | £600.00 |
Gross | £2,000.00 |
Amount liable to CIS | £1,400.00 |
CIS deduction 30% | £420.00 |
Amount payable | £1,580.00 |
The £140 difference is cash-flow pain until Self Assessment / company tax reconciles deductions. Getting verified matters. InvoiceAdept can print the split; it does not register you with HMRC.
Gross payment status (0%) still needs a clean invoice
Even at 0%, show labour and materials clearly. Contractors still need to verify and report. A clean split helps their monthly return and your own records. Do not treat 0% as "CIS disappeared".
VAT on CIS jobs (high level)
Topic | Practical habit |
|---|---|
VAT registration threshold | £90,000 (warn: £85,000 is stale) |
Ordinary domestic work for householders | Usually 20% if registered; no CIS; never reverse-charge |
Domestic reverse charge | Possible on some contractor construction supplies when HMRC tests met - separate from CIS |
CIS deduction base | Calculated excluding VAT |
See the domestic reverse charge invoice UK guide. Soften Notice 708 absolute claims. InvoiceAdept does not decide your VAT rate.
Domestic reverse charge vs CIS (do not mash them)
Mechanism | What it is | On the invoice |
|---|---|---|
CIS | Tax deduction on labour (when applicable) | CIS block with rate and pounds |
Domestic reverse charge | VAT accounting between specified businesses | Reverse-charge wording; customer accounts for VAT |
Retention | Contract hold-back | Separate from CIS and VAT |
Deposit | Money up front | Separate deposit invoice; credit later |
Never reverse-charge a householder. Never put CIS on a householder invoice.
Deposits, retention and stage invoices under CIS
Document | Habit |
|---|---|
Deposit invoice | Raise before start; credit by number on later stages - deposit guide |
Stage / application invoice | Show labour / materials for that period |
Retention release | CIS follows status on the date retention is paid (no special CIS retention law) - soften; get advice if unsure |
Final account | Close-out with clear credits |
Retention is not CIS. CIS is not retention.
Mistakes that delay CIS payment
Mistake | Fix |
|---|---|
No UTR | Add UTR; get registered / verified |
Labour and materials mashed into one line | Split lines; materials at direct cost only |
CIS block on householder invoice | Remove CIS entirely |
Claiming free-issue as materials | State free-issue; nil |
Inventing VAT reverse charge on a householder | Never |
Using £85,000 as current VAT threshold | Use £90,000 |
Fake £1m deemed contractor figure | Deemed construction-spend test is £3 million |
Implying InvoiceAdept filed CIS300 | Records only - you/accountant file |
No due date | Add payment terms |
Vague "works as agreed" | Site, dates, measurable scope |
Late payment on contractor debts
Contractor late payment is usually business-to-business. Statutory interest for qualifying commercial debts is often illustrated as Bank Rate + 8%. As of writing, Bank Rate is 3.75% (held 30 July 2026), so an illustrative statutory rate is 11.75%. Next MPC: 17 September 2026 - mark illustrative and re-check before chasing. InvoiceAdept does not run court claims. More: how to invoice a client UK tradesperson.
Making Tax Digital: records, not filing
MTD for Income Tax phases in record-keeping duties for many sole traders and landlords: £50,000 from April 2026, £30,000 from April 2027, £20,000 from April 2028 (as publicly announced - re-check GOV.UK). Storing digital invoices helps the records side. InvoiceAdept does not submit ITSA quarterly updates, VAT returns or CIS300 to HMRC.
Which UK software helps with CIS invoices (honest framing)
Need | InvoiceAdept | Typical accounting suite | CIS-only payroll-style tools |
|---|---|---|---|
Trade invoice with CIS lines | Pro+ designed for this | Often possible with setup | Varies |
WhatsApp send | Pro / Pro+ | Rare as native | Rare |
File CIS300 for you | No | Some accounting products can | Some specialist tools can |
Free trial volume | Free: five invoices / month | Usually paid trial | Varies |
Price | Free / Pro £7.99 / Pro+ £12.99 | Often higher | Varies |
InvoiceAdept competes on clean trade invoices and CIS-ready fields at a low price. It does not claim to replace full CIS300 filing software or your accountant. Compare features against your real workflow - do not invent competitor market-share stats.
How to raise a CIS invoice in InvoiceAdept
1. Open the free invoice generator or your Pro+ account. 2. Add contractor details, site and description. 3. Split labour and materials lines. 4. Enter UTR and CIS rate fields (Pro+). 5. Add VAT or reverse-charge wording only when it applies. 6. Send PDF / WhatsApp (plan-dependent). 7. Keep the contractor's payment and deduction statement when it arrives.
InvoiceAdept stores the sales document. You still reconcile CIS deductions on Self Assessment or company accounts as advised by your accountant.
Free vs Pro vs Pro+ for CIS subcontractors
Plan | Price (excl VAT) | Best for |
|---|---|---|
Free | £0 - five invoices / month | Practising clean labour / materials splits |
Pro | £7.99 / month | Higher volume + WhatsApp |
Pro+ | £12.99 / month | CIS-ready invoice fields |
None of the plans file CIS300, VAT returns, MTD, Self Assessment or court claims. Tech Me Today Ltd, Companies House 15917255, ICO ZB944663.
Sole trader versus limited company on CIS invoices
Topic | Sole trader | Limited company |
|---|---|---|
UTR on invoice | Personal UTR | Company UTR |
Who is verified | You | The company |
CIS deductions suffered | Credit via Self Assessment process | Company set-off rules against PAYE/CIS liabilities (accountant territory) |
Householder jobs | Still no CIS | Still no CIS |
Being Ltd does not automatically create CIS on a householder invoice.
Record-keeping checklist
Keep: sales invoices, deposit invoices, materials purchase invoices, plant hire tickets, free-issue notes, contractor payment and deduction statements, bank receipts, VAT workings. Soften absolute retention periods - follow your accountant and HMRC guidance. InvoiceAdept stores sales documents you create; you own the filings.
When materials-only supply sits outside CIS
Manufacture and delivery of materials without install is generally outside CIS (CISR14220). Soften. If the same contract later includes install, mixed-contract rules can pull payments in (CISR14030). Say clearly whether labour is included.
Trade-specific sister templates
Use this page for the CIS document pattern. Use trade pages for measurable scope language:
Checklist before you hit send (contractor CIS job)
UTR present?
Labour and materials split?
Materials only at demonstrable direct cost?
Free-issue stated where relevant?
CIS rate and pounds shown?
Net payable clear?
VAT / reverse charge correct and separate from CIS?
Not a householder invoice with a CIS block?
Due date and bank details present?
You understand InvoiceAdept does not file CIS300?
Payment and deduction statements vs your sales invoice
Document | Who issues it | Job |
|---|---|---|
Your CIS sales invoice | You | Tells the contractor labour, materials, expected deduction and net |
Payment and deduction statement | Contractor | Formal statement of what they paid and deducted in the tax month |
CIS300 monthly return | Contractor | Filed with HMRC - InvoiceAdept does not file this |
Do not treat your PDF as the contractor's statutory statement. Ask for the statement if it does not arrive. Keep both documents in your pack.
Verification: why 30% happens
Contractors verify subcontractors with HMRC before (or as required around) payment. If they cannot verify you, they may have to deduct at the higher rate. Practical habits:
Give the contractor your correct legal name and UTR (and National Insurance number or company number as required).
Do not rely on a trading name alone if it does not match HMRC records.
Re-check GOV.UK verification rules - this guide does not replace them.
InvoiceAdept does not verify you with HMRC and does not contact the CIS helpline for you.
Plant hire claimed as materials (softened)
Where you hire plant from a third party to carry out the construction work, hire costs (and some consumables such as fuel for that plant) are often treated like materials for CIS maths when evidenced. Soften absolute claims - keep hire tickets and follow CISR15060 framing and CIS340 guidance. Plant you own is not a notional hire carve-out. InvoiceAdept does not decide the carve-out.
Contra charges and set-offs (orientation only)
Construction contracts sometimes use "contra" charges and set-offs. Soften DIY tax theatre:
A contra for goods/services the contractor supplies to you often still counts as part of the payment picture for CIS - do not invent a shortcut that shrinks the CIS base incorrectly.
A set-off for alleged defects may reduce what is actually paid - CIS usually follows what is paid under the rules that apply.
These are fact-sensitive. Get advice from your accountant or the CIS helpline if a live dispute hangs on the wording. InvoiceAdept does not adjudicate contras.
Nominated payees, factors and gang leaders (high level)
Situation | Softened habit |
|---|---|
Payment to a debt factor | CIS treatment usually follows the subcontractor's status; statement still in your name |
Gang leader paid for the gang | Contractor CIS duties focus on the gang leader agreement - soften; see CIS340 gang notes |
Nominee payment | Verification rules can be stricter - re-check GOV.UK before you rely on a blog summary |
Do not invent payment routing as a way to escape CIS. Substance matters.
Employment status is not the invoice's job - but it matters upstream
CIS is for payments under contracts that are not contracts of employment. If you are actually an employee, PAYE applies instead. The contractor should consider employment status. Your invoice template does not decide employment status. Soften absolute "I invoice therefore I am CIS" claims. InvoiceAdept does not run employment status determinations.
Multi-site weeks and readable descriptions
Habit | Why |
|---|---|
One invoice per contractor payment cycle | Matches how they return you |
Site refs on every line or header | Stops "which job?" emails |
Dates of attendance | Helps applications and disputes |
Separate variation lines | Keeps extras visible |
Vague "labour as agreed w/e 7 Sep" without sites is how invoices bounce even when the CIS maths is fine.
Credit notes when a CIS invoice was wrong
If you overstated labour or billed the wrong site, do not silently edit the PDF after send. Issue a credit note that links to the original invoice number and date, then raise a correct new invoice if needed. See the live credit note template UK. Keep CIS narrative consistent - do not invent a separate "CIS credit law" on the PDF; ask your accountant if the CIS300 period needs a correction.
Exporting CSV and accountant packs
When your accountant asks for a month's CIS invoices:
Export or PDF-pack sales invoices with labour/materials splits visible.
Attach materials tickets that support carve-outs.
Attach contractor payment and deduction statements.
Do not claim InvoiceAdept submitted anything to HMRC.
Comparing InvoiceAdept with InvoiceFree and Tradify (no fake stats)
Lens | Honest note |
|---|---|
CIS fields on the invoice | InvoiceAdept Pro+ is built for trade CIS lines at a low price |
Full accounts + CIS300 | Heavier accounting suites may suit if you need bookkeeping + filing in one place |
Field trade UX / WhatsApp | InvoiceAdept emphasises WhatsApp send on Pro/Pro+ |
Price | Free five / Pro £7.99 / Pro+ £12.99 - check live pricing page |
Do not invent market-share or "X% of UK trades use Y" claims. Pick software for the jobs you actually run. InvoiceAdept does not file CIS300.
Applications for payment vs VAT invoices under CIS contracts
Document | Use |
|---|---|
Application for payment | Interim valuation language some main contracts require |
VAT / sales invoice | Tax invoice when your VAT rules require one |
CIS-ready sales invoice | Labour/materials + CIS block for contractor payment |
Follow the written contract's labels (JCT / NEC styles differ). Soften absolute "must use AFP" claims.
Self Assessment and company set-off (orientation, not filing)
Sole traders typically bring CIS deductions into Self Assessment as credits against tax/NIC due (as your accountant directs). Limited companies have separate set-off mechanics against employer liabilities in some cases. Soften - this is accountant territory. InvoiceAdept does not prepare SA103 pages or EPS set-off calculations.
Checklist for householder invoices (reminder)
No CIS block
No reverse charge
VAT only if registered and applicable (usually 20% for ordinary lived-in domestic work)
Clear description and due date
Deposit credited by number if any
Using the free invoice generator for a first CIS draft
Open the free invoice generator, add the contractor and site first, then labour and materials lines, then CIS fields on Pro+. Free still helps you practise clean splits on light volume (five invoices per month). WhatsApp send sits on Pro (£7.99). Pro+ is £12.99. None of the plans file CIS300.
FAQ
Do I need a special CIS invoice template?
You need the extra CIS fields (UTR, labour/materials split, rate, deduction, net). A dedicated layout helps. The legal duties sit with how the contractor operates CIS - your PDF supports clarity.
What are the CIS rates?
Commonly illustrated as 0% (gross), 20% (registered/verified) and 30% (unverified / not registered). Re-check GOV.UK for live rates and rules.
Are householders within CIS?
No. Private householders are not CIS contractors. Do not put CIS deductions on those invoices.
Can I include materials in the CIS deduction?
Materials you supply should generally be shown at direct cost and excluded from the amount liable (CISR15060). Free-issue is not your materials.
Does InvoiceAdept file my CIS300?
No. Pro+ helps you produce CIS-ready invoice fields. Filing CIS300 is for the contractor side (and your own contractor duties if you pay subcontractors). InvoiceAdept does not file CIS300, VAT returns, MTD or Self Assessment.
What is the VAT registration threshold?
£90,000. Do not use £85,000 as current.
Should I reverse-charge a householder?
Never.
What late payment interest can I quote on contractor debts?
Often Bank Rate + 8% for qualifying commercial debts. With Bank Rate at 3.75% as of writing, an illustrative figure is 11.75%. Next MPC 17 September 2026 - re-check. Mark illustrative.
What if my contract mixes materials supply and install?
Mixed contracts that include construction operations can bring all payments under that contract into CIS (CISR14030). Soften invoice-splitting tips; get advice if unsure.
Does gross payment status mean I can skip the invoice split?
No. Still show labour and materials clearly. 0% is not "CIS vanished".
What are the MTD for IT thresholds?
As publicly announced: £50,000 from April 2026, £30,000 from April 2027, £20,000 from April 2028. Re-check GOV.UK. InvoiceAdept helps with invoice records; it does not file MTD updates.
Is the deemed contractor test £1 million?
No. Do not invent £1 million. HMRC's deemed contractor construction-spend test is £3 million. Soften self-diagnosis.
Related guides
About this guide
Updated 13 September 2026 for invoiceadept.com by InvoiceAdept Editorial (Tech Me Today Ltd, Companies House 15917255, ICO ZB944663). Thickens the existing Published slug best-cis-invoice-software-uk-2026 in place - do not create a duplicate. General UK invoicing information for CIS subcontractors. Not tax or legal advice. VAT threshold stated as £90,000. Deemed contractor construction-spend test stated as £3 million. Bank Rate 3.75% (held 30 July 2026) and illustrative statutory interest 11.75% marked illustrative ahead of the 17 September 2026 MPC. InvoiceAdept does not decide CIS/VAT status and does not file CIS300, VAT returns, MTD updates or Self Assessment.
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