Vernon Casinos United Kingdom - This platform allows casinos to easily implement games from various providers all through the same software.
5 Deposit Slots United Kingdom: Were excited to be launching on the Mills white-label platform and thrilled that our content will soon be reaching their third-party clients.
Invoicing and Payment Applications for UK Contractors: A Practical Guide
🔹 Introduction
Invoicing is the lifeblood of your construction business—but it’s also one of the most misunderstood areas, especially when working with larger clients, main contractors, or under formal contracts.
Whether you’re billing for a small domestic job or submitting structured payment applications under a JCT contract, this guide will walk you through how to invoice professionally, get paid faster, and stay compliant.
🔹 Why Construction Invoicing is Different
Construction projects often involve:
Stage payments or milestones
Retentions
Valuation-based invoicing
Delayed final payments
CIS tax deductions
That means invoicing is more than just sending a bill—it’s a formal, timed process that affects your cash flow, tax, and legal rights.
🔹 Types of Construction Invoices
Type
Use Case
Standard Invoice
Smaller jobs or domestic work
Stage Payment Invoice
Set amounts for each project milestone
Valuation Certificate / Payment Application
Formal projects with QS or contract terms
Final Account Invoice
Issued after practical completion
🔹 What to Include in a Contractor Invoice
Your company name, address & VAT number
Invoice number and date
Client name and site address
Description of works
Invoice amount (incl. net, VAT, and CIS)
Retention held (if applicable)
Payment terms (e.g., 14 days)
Bank details for payment
🔹 Understanding Payment Applications
For larger projects (especially under JCT or NEC contracts), you’ll use a Payment Application instead of a standard invoice. This includes:
Summary of work completed to date
Deductions (CIS, retentions, previous payments)
Submitted to the Quantity Surveyor (QS) for approval
💡 Always submit before the cut-off date each month, or you may wait weeks for payment.
Tradify: Built for UK trades, integrates with accounting software
Payapps: Ideal for formal JCT/NEC payment applications
🔹 CIS Deductions on Invoices
If you work as a subcontractor:
Your invoices must clearly state your CIS status
The contractor will deduct 20% (or 30%) from your labour total
Materials are not subject to deduction (must be broken out)
💡 Always provide a correct UTR number and verify your CIS status to avoid 30% deductions.
🔹 Retention and Final Payments
Retention is typically 5% held until completion, with 2.5% released after the defect liability period (e.g., 6–12 months)
Always track retentions and follow up after handover
🔹 Common Invoicing Mistakes
Not separating labour and materials on CIS invoices
Forgetting to include retention clauses
Sending invoices late or without supporting evidence
Not following contract-specific timelines for applications
🔹 FAQs
Do I need to issue a payment application or just an invoice?
If you’re under a formal contract (like JCT), you should issue a payment application. For small/private jobs, a standard invoice may suffice.
How long do clients have to pay me?
Typical payment terms are 14–30 days, but under the Construction Act, you can enforce prompt payment rules if agreed upfront.
Can I charge interest on late payments?
Yes—you’re entitled to charge statutory interest (currently 8% plus base rate) on overdue invoices under UK law.
🔚 Final Thoughts
Your invoicing process directly affects your cash flow, tax deductions, and business survival. By understanding the specific rules around CIS, payment applications, and contract invoicing, UK contractors can ensure they’re paid correctly and on time.
Need help streamlining your invoicing and getting paid faster? Book a free consultation with our construction finance experts, and we’ll help set up a bulletproof billing system.
