Groundworker invoice template

How do groundworkers usually invoice?

Groundworkers invoice by the metre of foundation or the square metre of slab, with plant hire, concrete and muck-away shown as separate pass-through lines because they are the largest costs. On house extensions the groundworks stage is invoiced in one go once building control has inspected the trenches and the concrete is poured. Site work for contractors is invoiced fortnightly against measured quantities with CIS applied to labour.

Groundworkers in this example give the customer 14 days to pay, after a 25% deposit taken before the work starts. Hourly rates run from £25 to £42. A full day is typically £220 to £360.

What should a groundworker put on an invoice?

Beyond the legal basics, groundworkers should:

• Show plant hire, concrete and muck-away separately; they are pass-through costs the customer will want to see.
• Note the building control inspection date for foundations on the invoice.
• Price extras such as deeper trenches or unexpected services by the metre or hour as agreed on the day.
• Give the measured quantities a contractor can check against their own measure.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do groundworkers charge VAT?

Construction work for a contractor falls under CIS: the contractor deducts 20% (30% if you are not CIS registered) from the labour element before paying you, so show labour and materials on separate lines. If you are VAT registered and the contractor is too, the domestic reverse charge applies and you charge no VAT; write "Reverse charge: customer to account for VAT" on the invoice. Work for private householders is outside both rules. Below the £90,000 registration threshold you charge no VAT at all.

On the Flat Rate Scheme the sector for groundworkers is usually “General building or construction services” at 9.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.