How to invoice as a builder (UK)

How builders normally break the money down

A builder's invoice is usually labour days for the team, materials by delivery, and site costs such as skip hire and plant, invoiced in stages rather than all at the end. Keeping those apart is what stops the customer asking what the total covered.

Step by step

1. 1Name the stage this invoice covers — footings, superstructure, roof, first fix — and reference the agreed payment schedule.
2. 2Bill labour as team days, showing how many people and how many days, not as an undifferentiated lump.
3. 3Group materials by what they were for: blocks, sand and cement for the blockwork; timber and joist hangers for the floor.
4. 4Show site costs like skip hire, plant hire and welfare separately — they are real, verifiable outgoings.
5. 5Say what triggers the next stage payment so the customer can plan the money before you ask for it.

When to send it

In stages against an agreed schedule, with 7-day terms. Never let more than one unpaid stage build up before pausing.

Stage payments must be enforced on time or the job funds itself out of your pocket. State clearly that the next stage starts on cleared funds.

Common questions

How should a builder invoice stage payments?

One invoice per stage, each naming the stage and referencing the agreed schedule, with short payment terms and a clear statement that the next stage begins on cleared funds.

Should material receipts go with the invoice?

You do not have to send them, but saying they are available on request settles most queries before they are asked.

Do I invoice VAT at 20% on an extension?

Almost always yes. Zero and reduced rates apply to new builds and certain conversions or long-term empty properties, not to extensions on an occupied home.