Free CIS Invoice Template UK
A CIS invoice is a construction subcontractor's invoice that separates labour from materials so the contractor can deduct CIS from the labour only. Show the standard invoice fields plus your Unique Taxpayer Reference (UTR), a labour and materials split, the CIS deduction (20% if you are registered, 30% if not) and the net payable. VAT, materials, plant hire and consumables are not subject to CIS. Where both parties are VAT registered the VAT domestic reverse charge usually applies, so you do not charge VAT. Copy the free template below; no email required.
Last updated: 30 July 2026. CIS rates and deduction rules checked against gov.uk (Construction Industry Scheme) on 30 July 2026.
A CIS invoice is a construction subcontractor's invoice under the Construction Industry Scheme that itemises labour and materials separately so the contractor can deduct CIS from the labour element only. The contractor deducts 20% from a registered subcontractor and 30% from an unregistered one, as an advance on the subcontractor's tax and National Insurance (gov.uk). VAT, materials, consumable stores, fuel except for travelling, and plant hire are excluded from the deduction. Between VAT-registered CIS businesses the VAT domestic reverse charge (from 1 March 2021) usually applies, so the subcontractor does not charge VAT and the contractor accounts for it. The invoice should show the subcontractor's UTR, the labour and materials split, the CIS rate and amount, and the net payable. More detail + scope
Summary
This page provides a free copyable and downloadable UK CIS invoice template for construction subcontractors. It shows how to lay out labour and materials so CIS is deducted from labour only, the 20% registered and 30% unregistered deduction rates and that they are advance payments towards tax and National Insurance, the items excluded from CIS (VAT, materials, consumable stores, fuel except for travelling, plant hire), the VAT domestic reverse charge that usually applies between VAT-registered CIS businesses from 1 March 2021, the fields a CIS invoice must show including the UTR, and how CIS deductions and retentions reduce the fundable value when construction invoices go to invoice finance.
This page covers
UK CIS invoice template for construction subcontractors: how to show the CIS deduction on labour only, the 20% and 30% rates, excluded items, the VAT domestic reverse charge, required invoice fields, and how CIS deductions affect invoice finance
Not covered here
The standard invoice template (see /tools/invoice-template/), receipts (see /tools/receipt-template/), gov.uk for CIS registration and returns, and the unpaid invoices hub (see /unpaid-invoices/)
The template
Copy it straight into a document, email or accounting system. Square brackets mark the fields to replace. Keep labour and materials on separate lines: it is the split that decides how much CIS is deducted.
CIS INVOICE Invoice number: INV-0001 Invoice date: [date] Supply date: [date work carried out] From (subcontractor): [Your name / trading name] [Address] [Email] [Phone] UTR: [10-digit Unique Taxpayer Reference] [VAT registration number, if VAT registered] To (contractor): [Contractor name] [Contractor address] -------------------------------------------------------------- Description Amount -------------------------------------------------------------- Labour: [description of work] GBP [0.00] Materials: [description] GBP [0.00] Plant hire / consumables (not CIS) GBP [0.00] -------------------------------------------------------------- Subtotal GBP [0.00] VAT [20]% (or reverse charge, see note) GBP [0.00] -------------------------------------------------------------- Gross total GBP [0.00] CIS deduction: Labour element subject to CIS GBP [0.00] CIS deducted at [20]% (registered) -GBP [0.00] -------------------------------------------------------------- NET PAYMENT DUE (gross less CIS) GBP [0.00] -------------------------------------------------------------- CIS note: the CIS deduction is taken from the labour element only. VAT, materials, plant hire, fuel (except for travelling) and consumable stores are not subject to CIS. The contractor pays the deduction to HMRC as an advance on the subcontractor's tax and National Insurance. The rate is 20% for a registered subcontractor and 30% for an unregistered one. VAT note: most construction services reported under CIS between VAT-registered businesses fall under the VAT domestic reverse charge (in force from 1 March 2021), so the subcontractor does not charge VAT and the contractor accounts for it. Where the reverse charge applies, show no VAT amount, state clearly "reverse charge: customer to account for VAT to HMRC", and show the VAT rate that applies. Pay to: [Bank name] Sort code: [00-00-00] Account: [00000000] Reference: INV-0001
How the CIS deduction works
Under the Construction Industry Scheme, a contractor must deduct money from a subcontractor's payments and pass it to HMRC. The rate is 20% for a registered subcontractor and 30% for an unregistered one, and the deductions count as advance payments towards your tax and National Insurance bill. Subcontractors with gross payment status are paid in full and settle later.
Crucially, CIS comes off the labour element only. Before applying the rate the contractor takes away what you paid for VAT, materials, consumable stores, fuel used (except for travelling), plant you hired for the job, and manufacturing or prefabricating materials (gov.uk). That is why the template splits labour and materials: a single lumped figure risks CIS being over-deducted on materials that should have been excluded.
VAT: the domestic reverse charge
Most construction services reported under CIS between VAT-registered businesses fall under the VAT domestic reverse charge, in force from 1 March 2021. Where it applies, you do not charge VAT: you show no VAT amount, state clearly that the customer must account for the VAT to HMRC, and show the rate that would have applied. Supplies to an end user, or where either party is not VAT registered, can fall outside the reverse charge, so confirm the position for each contract before you invoice.
“The single biggest mistake I see on CIS invoices is not itemising materials. If you invoice one gross figure for a job that was half materials, a cautious contractor can apply CIS to the whole thing, and you have just handed HMRC 20% of money that was never taxable income. Break out labour, materials and plant on every invoice, keep the supplier receipts for the materials, and show the CIS deduction as its own line so the net payment is unambiguous. It is your cash flow, not just neat paperwork.”
CIS invoices and invoice finance
Construction is one of the sectors invoice finance was built for, because payment terms are long and cash is tied up in work already done. But providers underwrite construction carefully: the CIS deduction and any contractual retention reduce the net cash actually collected, and contra-charges, applications for payment and stage billing add risk. The advance is set against the net fundable value, not the headline gross.
A CIS invoice that clearly separates labour, materials and the deduction, and states the correct VAT treatment, is easier to fund than one that hides the real net figure. If you are weighing finance against waiting on a slow-paying main contractor, our costs guide sets out the numbers, and the unpaid invoices hub covers chasing overdue payments.
Companion templates
- Standard invoice template: for non-CIS work and the general required fields.
- Receipt template: to confirm a payment received against a CIS invoice.
- Statement of account template: to summarise a contractor's account over a period.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Last reviewed: 31 July 2026