Invoicing in the construction industry

[Karis]

Hi, I have recently started up a new formwork (limited) company. I need to invoice for a job and would like to know if I have to show a break down for labour and materials or if I can just invoice for the job as a whole? I am vat registered and will show a break down of vat regardless of course.
Also, I invoiced for a previous job but mistakingly put my own UTR rather than my company's UTR number. Tax was then consequently paid on my behalf before my company was paid (if that makes sense). When I correctly supply my company's UTR, will tax still be paid on my behalf?
Thanks so much for any help!

 

[Gecko001]

If you quoted a lump sum figure and there were no extras, then all you need to put is a brief description of what you provided and a single figure you quoted.

You do not need to show a breakdown of the VAT. It is of no relevance to anybody if you are not VAT registered. It will only confuse people as they might think that you are VAT registered.

 

[The Byre]

I have NEVER asked for an itemised building invoice, as (for example) brickies charge by the brick, either with or without brick.

Just imagine having to itemise an entire build - £2.73 diverse brass screws for door hinges. £12.62 for diverse screws for door locks. £52.17 for grouting. £122.84 for tile fixing glue. Window frames type 1 (120cm x 87cm) five windows at £128 each - and so on and on and on.

That could make writing the invoice more work than the work itself!

The alst time I did a build, it was £X,000 for foundations which I paid, followed by £X,000 for raw build, and so on. The VAT was on the whole amount.

 

[Karis]

Thank you for your replies.
I am VAT registered, so I have to include it on the invoice.
Re the breakdown, I didn't mean literally list everything, but more, do I have to state:
Labour: £XXX
Materials: £XXX
Total £XXX
or can I just put:
Total for Job ABC: £XXX

Thank you again!

 

[The Byre]

That's up to you (and what the customer asks for).

 

[Scalloway]

It does matter what you put on your invoice if you are working as subcontractor in the building industry. Unless you are able to be paid gross you must disclose the labour element so that the correct CIS tax can be deducted.

 

[Karis]

So how does that work when it comes to paying my own subcontractors & their CIS?
If CIS is paid by the company I'm invoicing, whose CIS would they be paying? My own or each individual that worked on the job (i.e. myself and each of my subcontractors).
Or just 20% of labour costs? If that is the case it sounds like my company will be having 20% CIS deducted from the total amount of labour and then my company would have to pay a further 20% for each subcontractor?
Thank you for your help with this! It's a little confusing.

 

[Scalloway]

It is a good few years since I dealt with CIS tax so I can only refer you to these guides. If you have further queries I would suggest posting in Accounts and Finance forum.

https://www.gov.uk/government/uploa...uction_Industry_Scheme_-_Helpcard_2016_v4.pdf

https://www.gov.uk/what-you-must-do-as-a-cis-contractor

 

[Newchodge]

To start with it depends on how you quoted. If you quoted separately for materials and labour, then you should itemise. If you are CIS registered then you must show labour separately

 

[TheHighwayMan]

Hi,

Congratulations, you have the honour of receiving my first post

I can only echo the CIS comments - as a contractor or subcontractor you have to register for CIS and then opt out if you wish to / can agree to with HMRC.

As a subcontractor, you will be required to invoice as expected plus declare how much (net) is labour (which can also include some plant).

As a contractor you will be required to assess the labour element of the subcontractor payment.

Both will affect the actual cash paid with deductions for the appropriate tax.

It's not overly complex but I'd suggest getting a chartered accountant in to at least set you up and get you informed of your responsibilities as both contractor and subcontractor.

 

[Deleted member 59730]

Just imagine having to itemise an entire build - £2.73 diverse brass screws for door hinges. £12.62 for diverse screws for door locks. £52.17 for grouting. £122.84 for tile fixing glue. Window frames type 1 (120cm x 87cm) five windows at £128 each - and so on and on and on.

That could make writing the invoice more work than the work itself!

You obviously have never dealt with Cornish builders. I had some facias repaired on my house and every nail, screw and sheet of sandpaper was listed; in copperplate handwriting. The job took 2 days but it took me over a year to get the bill.