CIS Invoice Template: Free Download for UK Subcontractors

A standard invoice won't work for CIS jobs. If you're a subcontractor working for a CIS-registered contractor, your invoice needs specific line items that most templates leave out — and getting them wrong means incorrect deductions, cash flow problems, or compliance issues with HMRC.

Here's exactly what a CIS invoice must include, the calculations behind each line, and how to build one correctly every time.

What Makes a CIS Invoice Different

A regular trade invoice has materials, labour, VAT, and a total. A CIS invoice adds three things:

1. A labour-only subtotal. CIS deductions apply to labour only — not materials, equipment hire, or VAT. Your invoice must separate these clearly so the contractor deducts from the right amount.
2. A CIS deduction line. The contractor deducts CIS tax (20% for registered subcontractors, 30% for unregistered) from the labour amount and pays that to HMRC on your behalf.
3. Your UTR (Unique Taxpayer Reference). The contractor needs this to verify your CIS registration status with HMRC before making payment.

Without these, the contractor can't process your invoice correctly. Some will reject the invoice outright. Others will deduct 30% from the total (including materials) because they can't identify the labour portion — costing you hundreds per invoice.

CIS Invoice Line Items (Complete Breakdown)

Here are the fields to include in practice on a CIS invoice — these ensure the contractor can process your payment correctly and you have clean records for your tax return:

Your details:

• Business name and trading name
• Business address
• UTR (Unique Taxpayer Reference)
• VAT registration number (if VAT-registered)
• Contact details (phone, email)

Contractor details:

• Contractor business name
• Site address where work was performed
• Contractor's CIS reference (optional but useful for your records)

Invoice details:

• Invoice number (sequential)
• Invoice date
• Payment terms

Line items (the critical part):

Line	Description	Amount
1	Labour — [description of work], [days/hours] at [rate]	£X,XXX
2	Materials — [itemised or summary]	£X,XXX
3	Equipment hire / plant (if applicable)	£XXX
4	Subtotal	£X,XXX
5	CIS deduction at [20% or 30%] on labour (line 1)	−£XXX
6	VAT at 20% on subtotal (or reverse charge — see below)	£XXX or £0
7	Total due	£X,XXX

The contractor pays you line 7. The CIS deduction (line 5) goes to HMRC as a credit against your annual tax bill.

CIS Deduction Rates

Your deduction rate depends on your CIS registration status:

Status	Deduction Rate	Who Qualifies
Registered	20% on labour	Most subcontractors — registered with HMRC for CIS
Unregistered	30% on labour	Not registered for CIS (costs you 10% more — register)
Gross payment status	0%	Established subcontractors meeting HMRC turnover and compliance tests

If you're not yet registered for CIS, the contractor must deduct 30% instead of 20%. That's a significant cash flow hit on every invoice. CIS registration is free and can be done online.

Worked Example: CIS Invoice Calculation

A plasterer invoices a main contractor for dry-lining work on a house extension:

Item	Amount
Labour — 5 days at £220/day	£1,100
Materials — plasterboard (40 sheets), bonding, skim, beads, tape	£680
Subtotal	£1,780
CIS deduction at 20% on labour (£1,100)	−£220
VAT (reverse charge applies — not invoiced)	£0
Net payment due	£1,560

The contractor pays the plasterer £1,560 and sends £220 to HMRC. The plasterer claims back the £220 as a tax credit on their Self Assessment or Corporation Tax return.

Use the CIS Deduction Calculator to run your own numbers — enter gross payment, materials, and CIS rate to see the exact deduction and net payment.

VAT and the Domestic Reverse Charge

If you're VAT-registered and the work qualifies for CIS, the domestic reverse charge may apply. Under reverse charge:

• You do not add VAT to your invoice
• The contractor accounts for the VAT on their own VAT return
• Your invoice must state: "Reverse charge: customer to account for VAT to HMRC"

This applies when all three conditions are met:

1. You and the contractor are both VAT-registered
2. The work is standard-rated or reduced-rated construction services
3. The contractor has not provided written end-user notification

If reverse charge applies, your invoice total is lower (no VAT added), but your VAT return still needs to reflect the transaction. Your accountant handles this — but your invoice must be formatted correctly to trigger the right treatment.

If reverse charge does NOT apply (e.g., you're invoicing an end-user directly, or you're not VAT-registered), add VAT at the standard 20% rate on the full subtotal (materials + labour).

Common CIS Invoice Mistakes

Lumping materials and labour together. This is the most expensive mistake. If the contractor can't identify the labour portion, they may deduct CIS from the full amount. On a £5,000 invoice with £2,000 in materials, that's the difference between a £600 deduction (on £3,000 labour) and a £1,000 deduction (on the full £5,000). That £400 gap sits with HMRC until you file your tax return.

Missing UTR. Without your UTR, the contractor can't verify your CIS status. They must apply the 30% unregistered rate — even if you are registered.

Wrong VAT treatment. Charging VAT when reverse charge applies (or not charging when it doesn't apply) creates mismatches on both parties' VAT returns. Check the reverse charge conditions above for every CIS invoice.

Not keeping payment and deduction statements. The contractor must issue you a payment and deduction statement within 14 days of each tax month end. You need these statements to reclaim your CIS deductions — chase them if they don't arrive.

CIS Invoice Checklist

1. UTR shown on the invoice
2. Labour and materials on separate line items
3. CIS deduction calculated on labour amount only
4. Correct deduction rate applied (20% registered / 30% unregistered / 0% gross)
5. VAT treatment correct (reverse charge or standard rate)
6. Reverse charge notice included if applicable
7. Invoice number sequential and unique
8. Contractor details and site address included
9. Payment terms stated

For the full picture on CIS — registration, verification, deduction rates, and the April 2026 changes — see our complete CIS payments guide.

This is general guidance on CIS invoicing requirements, not tax advice. CIS rules have specific compliance obligations — consult a qualified accountant for your individual circumstances.

Sources

• What you must do as a CIS subcontractor — GOV.UK
• How to register as a CIS subcontractor — GOV.UK
• CIS contractor: make deductions and pay subcontractors — GOV.UK
• VAT domestic reverse charge for construction — GOV.UK