Does VAT apply to tradesperson work?
VAT at the standard rate of 20% applies to most construction and trade services in the UK. However, some work qualifies for reduced or zero rates. New residential builds are zero-rated. Renovations and repairs to residential properties are standard-rated at 20%. Some energy-saving installations qualify for a reduced 5% rate. Always confirm with HMRC or a local accountant.
Labour vs materials
In the UK, VAT applies to both labour and materials for most trade work — unlike some other tax systems. However, itemising labour and materials separately on every invoice is still best practice and helps your customers understand what they are paying for.
How to show VAT on your invoice
Show it as a separate line item below your subtotal. Label it clearly as "VAT" and include the rate (e.g. 20%). TradieNotes includes a VAT field you can fill in manually before exporting your PDF.
- Sub Total (labour + materials)
- VAT (at the applicable rate)
- Total Due
Your VAT number on invoices
If you are VAT registered, your VAT number must appear on all VAT invoices. The format is GB followed by 9 digits, e.g. GB123456789. You are required to register for VAT once your taxable turnover exceeds £90,000 in any 12-month period.
Invoice with VAT in 60 seconds
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