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Free Invoice Template for Contractors

Invoice for labour, materials, equipment, and subcontractor costs. Clear breakdown for progress payments and retention. Professional PDF, no signup.

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Contractor Invoice Structure

Construction and trade invoices are typically multi-section:

Labour — by trade or day rate × number of days, or hourly × hours
Materials and supplies — itemised with quantities and unit prices
Equipment hire — scaffold, plant, tools, by day or week
Subcontractor costs — separate line per subcontractor with reference
Site costs — waste removal, permits, deliveries
VAT/tax on labour and materials (rules can differ between materials and services in some jurisdictions)

Progress Payments and Retention

Larger construction contracts are typically invoiced in stages:

Mobilisation / deposit — 10–25% upfront
Progress payments — monthly or at defined milestones (e.g., first fix, second fix, completion)
Retention — 5% of each invoice held until practical completion + defects period (typically 12 months)

Each invoice should show the contract sum, value of work to date, less previous payments, less retention, equals current payment due. invoicePrivate supports this breakdown via clearly labelled line items.

Reverse Charge VAT (UK Construction)

UK contractors must apply the Domestic Reverse Charge for construction services since 2021. This means VAT is not charged on the invoice — the customer accounts for it. The invoice must clearly state "Reverse charge: VAT Act 1994 Section 55A applies" and the VAT amount that would have been charged. Applies to most B2B construction work; check HMRC guidance for your specific trade.

Frequently Asked Questions

Should labour and materials be on the same invoice?

Yes — but list them as separate line items or sections. This is important for tax (some jurisdictions tax them differently), for client transparency, and for resolving disputes. CIS (UK) requires distinguishing labour from materials.

How do I handle retention on an invoice?

Show the full value of work completed, then a separate line "Less 5% retention" as a negative line item, then the net payable. The retained amount is invoiced separately at the end of the defects period.

When does UK reverse charge apply?

Applies to B2B construction services between VAT-registered businesses where the customer is not the end user (i.e., they will use the work in their own onward construction supply). End-user customers (e.g., a homeowner) are not subject to reverse charge.

How do I bill for change orders?

Issue a variation invoice or include the variation as a clearly-marked line item on the next progress invoice. Reference the change order number agreed with the client. Never absorb scope changes silently — clients should approve in writing before the work proceeds.

Your First Invoice in Under Three Minutes

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