A clear invoice helps a customer understand what work has been completed, what they are being charged for and when payment is due. Builders and tradespeople can use the checklist below to make their invoices easier to follow and their records easier to manage.
What should a UK invoice include?
For a standard business invoice, include a unique invoice number, your business name and contact details, the customer's name and address, a clear description of the goods or services supplied, the relevant supply date, the invoice date, the amounts charged and the total owed. Check the current GOV.UK guidance for the requirements that apply to your business.
What extra details go on a VAT invoice?
If you are VAT registered and need to issue a VAT invoice, additional information is required. HMRC's VAT Notice 700 explains the details, including the supplier's VAT registration number, the time of supply, the customer's details, a description and extent of each supply, the applicable VAT rate, the net amounts and the total VAT chargeable. Different invoice types and exceptions can apply, so check the official guidance rather than relying on a generic template.
Read the official guidance: GOV.UK: invoices and what they must include and HMRC VAT Notice 700.
Make construction invoices easy to understand
For building work, describe the job and the work covered by the invoice. Where it helps the customer, separate labour, materials, agreed variations, plant or other charges into clear lines. Refer to the relevant quotation, job address or agreed stage of work so the customer can match the invoice to the project. Only include payment stages and due dates that have actually been agreed.
Keep invoice numbers and payment status organised
Use a consistent numbering sequence and record when each invoice is issued, its due date, the amount, and whether it is unpaid, part-paid or paid. Keep copies of invoices and supporting records together. Review overdue items regularly and keep a note of reminders or payment arrangements.
Separate quoting, job tracking and invoicing
Quotes, job records and invoices serve different purposes. A quotation sets out the proposed work and price; job records help you track progress and changes; an invoice requests payment for an agreed supply or completed stage. Keep each document clear and make sure any variations are agreed and recorded.
For a related guide, read What should a builder's quote include?.
Keep your invoice administration in one place
The TRADEKIT Builder's Business Toolkit is an editable Excel workbook for builders and tradespeople. It includes an invoice tracker for recording invoices, due dates and payment status, alongside a quote builder and job tracker. It helps organise invoice administration; it is not an invoice-generation or accounting system, so check the details of every invoice before sending it.
This article is general information, not tax, legal or accounting advice. Requirements depend on your circumstances. Check the current HMRC guidance or speak to your accountant if you are unsure.