Heating engineer invoice template

How do heating engineers usually invoice?

Heating engineers invoice full system installs in stages, typically a 30% deposit when the boiler or heat pump is ordered, a payment at first fix and the balance on commissioning. Repairs and power flushes are fixed price and paid on completion. Heat pump work adds grant paperwork, so the invoice shows the gross price, the grant deducted and the balance the customer pays.

Heating engineers in this example give the customer 14 days to pay, after a 30% deposit taken before the work starts. Hourly rates run from £50 to £85. A full day is typically £320 to £480.

What should a heating engineer put on an invoice?

Beyond the legal basics, heating engineers should:

• Show the grant amount as a deduction on heat pump invoices so the customer sees the gross and net.
• Keep zero rated energy-saving work and standard rated radiator work on separate lines with their own VAT rates.
• Include the MCS certificate number and commissioning date.
• State the boiler or heat pump model and the manufacturer warranty length.

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 heating engineers charge VAT?

Heating installation for a contractor is under CIS with 20% deducted from labour and the reverse charge for VAT-registered contractors. Air source heat pumps and their installation in a home are zero rated for VAT until 31 March 2027 under the energy-saving materials relief, after which the rate becomes 5%. A conventional boiler and radiators in an existing home are standard rated at 20%. Below the £90,000 threshold you charge no VAT.

On the Flat Rate Scheme the sector for heating engineers 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.