Contractor Invoice Generator
Create professional invoices with VAT breakdown, payment terms, and line items. Free to generate and view. Upgrade for unlimited invoices, PDF download and recurring templates.
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Client details
Invoice details
Line items
Description
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Rate (£)
VAT
Frequently asked questions
What must a UK contractor invoice include?▾
A valid UK invoice must include: your business name and address, the client's name and address, a unique invoice number, the invoice date, a description of services, the amount charged, VAT details (if VAT registered), and your payment terms. Bank details for payment should also be included.
Do I need to charge VAT on my invoices?▾
You must charge VAT if your business is VAT registered. You must register for VAT if your taxable turnover exceeds £85,000 in a rolling 12-month period. If you are not VAT registered, you must not show VAT on your invoices.
What are standard payment terms for contractors?▾
Common payment terms are 14 or 30 days from invoice date. Some contracts specify 7 days for urgent work. The Late Payment of Commercial Debts Act allows you to charge interest and compensation if invoices are not paid on time.
What is the difference between a timesheet and an invoice?▾
A timesheet records hours worked and is typically approved by the client before invoicing. An invoice is a formal request for payment that references the approved timesheet. Many agencies and end clients require approved timesheets before they will process invoices.
Should I include my company number on invoices?▾
If you operate through a limited company, you are legally required to show your company registration number, registered office address, and place of registration (e.g. England and Wales) on all business documents including invoices.
What VAT rate should I charge for construction work?▾
Most construction services are subject to 20% standard rate VAT. However, the 5% reduced rate applies to certain works such as residential renovations of dwellings empty for 2+ years, conversions, and energy-saving materials. New build residential properties are zero-rated (0%).
What is the CIS deduction on contractor invoices?▾
Under the Construction Industry Scheme (CIS), main contractors must deduct 20% (or 30% for unverified subcontractors) from payments for labour. The deduction does not apply to materials. CIS deductions should be clearly shown on the invoice.
How long should I keep copies of invoices?▾
HMRC requires you to keep records of all invoices for at least 6 years. If you are VAT registered, you must keep VAT invoices for 6 years. It is good practice to store both digital and physical copies in a systematic filing system.
Can I invoice without a limited company?▾
Yes. Sole traders and partnerships can issue invoices. As a sole trader, you use your own name or trading name. You do not need a company registration number, but you must include your name and address on the invoice.
What happens if my invoice is not paid on time?▾
Under the Late Payment of Commercial Debts Act 1998, you can charge statutory interest at 8% plus the Bank of England base rate, plus a fixed compensation of £40-£100 depending on the debt amount. Always issue a formal reminder before escalating.