VAT reverse charge checker

Since March 2021 on a lot of construction invoices you don't charge the VAT. The invoice still shows the VAT amount and says the customer pays it to HMRC, but it isn't added to what they pay you. Getting it wrong means charging VAT you shouldn't, or not charging VAT you should. Six questions.

Is the work reported under CIS?

Building, groundwork, plumbing, sparks, plastering, roofing, painting. Not architects, surveyors, scaffolding hire on its own, or delivering materials.

Are you VAT registered?

The one doing the work and sending the invoice.

Is the customer VAT registered?

Ask them for the number and check it.

Is the customer registered with HMRC as a CIS contractor?

A main contractor or developer usually is. A homeowner never is.

Have they told you in writing they're an end user or intermediary?

An end user is the one having the work done for themselves, not selling it on. Their written notice is what protects you, so keep it.

Is the work zero rated?

Qualifying new build housing is the usual one.

Reverse charge applies. Show the VAT due, but don't add it to the total.

It's CIS construction work, both of you are VAT registered, the customer is a CIS contractor, and they haven't told you they're an end user.

You don't charge the VAT. The invoice still shows the VAT amount and says the customer pays it to HMRC, but it isn't added to what they pay you. The customer puts the VAT on their own return, both sides of it, so HMRC ends up square.

Put this on the invoice

Reverse charge: VAT Act 1994 Section 55A applies. Customer to pay the VAT to HMRC. VAT at {rate}%: £{amount}.

Swap {rate} for the job's own VAT rate (20%, or 5% for reduced-rate work) and {amount} for the VAT that would have been charged. You show it, you don't collect it.

Supplied through an employment business, or a job that's mostly goods with a small bit of construction? The rules differ, check HMRC's reverse charge guide or ask your accountant.

Your app can do this every time, without you

This is the same sum InstaQuote runs on a real invoice. It splits labour from materials on its own, takes the CIS off, handles the reverse charge wording, and keeps the VAT return in order behind the scenes. You do the job, we do everything else.

Try it free

The other free ones

CIS deduction calculator

Materials out, 20% or 30% off the labour, and what actually lands in the bank.

Flat Rate or Standard?

Your turnover and your costs, both schemes, which one leaves you more.

A guide, not tax advice. Rules and rates from GOV.UK, checked 22 September 2026. If a job is unusual or a lot of money rests on it, ask your accountant or HMRC.