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United Kingdom Tax Information

20% VAT (standard)

VAT is 20% standard, 5% reduced, 0% for exempt. Registration mandatory above £85,000 turnover.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in United Kingdom

Business name
VAT number if registered
Client details
Invoice number
Tax point date
VAT breakdown
Total with/without VAT

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Net 30Net 14Due on ReceiptEnd of Month

Payment Methods in United Kingdom

Bank Transfer (BACS)Faster PaymentsDirect DebitCredit CardPayPal

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in United Kingdom?

United Kingdom has 20% VAT (standard). VAT is 20% standard, 5% reduced, 0% for exempt. Registration mandatory above £85,000 turnover.

What payment methods are common for contractors in United Kingdom?

Common payment methods in United Kingdom include: Bank Transfer (BACS), Faster Payments, Direct Debit, Credit Card, PayPal. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in United Kingdom?

Your invoice should include: Business name, VAT number if registered, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

Do I need to charge VAT?

If VAT-registered (mandatory above £85,000 turnover), charge 20% on taxable supplies.