Subcontractor Invoice Template for England and Wales

A subcontractor invoice is your formal request for payment when providing construction services to main contractors in England and Wales. This document must comply with multiple pieces of legislation, including the Construction Industry Scheme (CIS) Regulations, VAT Act 1994, and Companies Act 2006, making it essential to use a properly structured template that meets all legal requirements.

When do you need this document?

You need a subcontractor invoice whenever you complete work for a main contractor in the construction industry. This applies whether you're a sole trader, partnership, or limited company providing services such as electrical work, plumbing, carpentry, or general building services. The invoice is required for monthly payment applications, interim valuations, or final account settlements. You must issue invoices that comply with CIS regulations if the main contractor operates the scheme, which applies to most construction businesses with annual payments exceeding £3 million to subcontractors.

Key legal considerations

Your invoice must include specific information to comply with English law. Under the Companies Act 2006, limited companies must display their full registered name, registration number, and registered office address. VAT-registered businesses must include their VAT number and correctly calculate VAT at the appropriate rate. The Construction Industry Scheme requires clear identification of your verification status and any applicable tax deductions. Include detailed descriptions of work completed, as required by the Supply of Goods and Services Act 1982, to avoid payment disputes. Payment terms should comply with the Late Payment of Commercial Debts (Interest) Act 1998, which provides statutory rights to interest on overdue payments. Ensure all amounts are clearly broken down between labour, materials, and any applicable taxes or deductions.

Legal requirements in England and Wales

English law mandates specific invoice formatting and content requirements. VAT Act 1994 requires VAT-registered subcontractors to issue valid VAT invoices showing the correct rate of VAT and total tax due. CIS Regulations require main contractors to verify your tax status and make appropriate deductions - either 20% for registered subcontractors or 30% for unregistered ones. Your invoice must clearly show these deductions and the net amount payable. Include your unique taxpayer reference (UTR) number and specify whether you're registered for gross payment under CIS. The invoice must contain sufficient detail about the work location and nature of services to allow proper CIS reporting. Payment terms should be clearly stated, with consideration for the statutory right to claim interest on late payments after 30 days for business-to-business transactions.