Groundworker invoice template: labour, plant hire, fuel and CIS
Groundworkers have costs that other trades do not: hired machines, fuel, tipping. They change how much CIS is taken, so the invoice has to separate them from labour. Here is a layout, a worked example and what to keep as proof.
On this page
What groundwork covers
GOV.UK's list of building and construction services includes site clearance, earth-moving, excavation, laying of foundations, and the provision of roadways and other access works, so groundwork is normally CIS work. That means a contractor will deduct tax from what you invoice, unless you have gross payment status. The figures here are illustrations for the arithmetic, not real rates.
What the contractor takes out before the deduction
This is where groundworkers can protect their money. GOV.UK's guidance for contractors says the deduction starts from the invoice total, then takes away what the subcontractor paid for:
- VAT;
- equipment which is now unusable, called consumable stores;
- fuel used, except for travelling;
- equipment hired for this job, called plant hire;
- manufacturing or prefabricating materials;
- materials, but only if the subcontractor paid for them directly.
The contractor can ask for evidence such as receipts, and if you cannot give any they may estimate the cost. So the invoice must show hired plant, fuel and materials on their own lines, separate from your labour.
Worked example: a week of drainage and foundations
Tom digs trenches and lays drainage on a small development. He hires a 3-tonne excavator for three days, buys fuel for it, and works 4 days at £190.00.
| Line | Qty | Rate | Amount |
|---|---|---|---|
| Labour: excavation and drainage runs, plots 1 to 4 | 4 days | £190.00 | £760.00 |
| Excavator hired for this job, 3 days (hire invoice 4417 attached) | 3 days | £110.00 | £330.00 |
| Fuel used on site (receipts attached) | 1 | £54.20 at cost | £54.20 |
| Total | £1,144.20 |
| CIS step | Amount |
|---|---|
| Invoice total | £1,144.20 |
| Less plant hire | £330.00 |
| Less fuel | £54.20 |
| Labour subject to CIS | £760.00 |
| CIS deduction at 20% | £152.00 |
| Paid to Tom (£1,144.20 − £152.00) | £992.20 |
If the plant hire had been folded into a single £1,144.20 line, the deduction on paper would be 20% of £1,144.20, which is £228.84, and Tom would be left with £915.36 until it was sorted out. That is £76.84 out of pocket for a week, which is only recovered later through your tax return. Itemising it up front avoids that.
What if you own the machine?
GOV.UK's wording refers to equipment hired for the job. If you own the digger, check the CIS guidance or ask HMRC how your contractor should treat your machine charge, rather than assuming it is outside the deduction. Do not label owned plant as hired to reduce a deduction.
Tipping, muck-away and skips
Charges to take spoil away are often agreed as a separate price, with delivery and tipping documents kept. If you pay a tip or skip company directly and are repaid at cost, list it as a separate line and keep the paperwork. If the charge includes your own labour, the contractor may treat the labour element as subject to CIS, so say what each line is.
VAT
If you are VAT registered, most supplies of building and construction services to a VAT-registered contractor within CIS are subject to the domestic reverse charge, so you do not add VAT and the contractor accounts for it. Check the guidance for your job. See the reverse charge guide.
Records to keep
Keep hire agreements, fuel receipts and tip tickets, matched to each week's invoice. Your CIS payment and deduction statements should add up to the deductions on your invoices. See CIS payment and deduction statements, and the CIS refund calculator to estimate your year-end position.
Groundworker invoice checklist
- Your name, address and unique invoice number.
- The contractor, site and the dates covered.
- Labour as days or hours at an agreed rate.
- Hired plant on its own lines, with the hire invoice reference.
- Fuel and materials you paid for, at cost, with receipts.
- CIS summary: total, items excluded, labour, deduction, amount payable.
- Bank details and terms.
The free CIS invoice template has a layout you can adapt.
More trade invoice guides
Other trades invoice differently. See the guides for bricklayer, labourer, plumber, joiner and carpenter, painter and decorator, electrician and plasterer, or browse all trade invoicing guides. For the rules that apply to every trade, read the invoice requirements for sole traders, and use the day rate calculator to turn a day rate into an hourly rate.
Frequently asked questions
Is groundwork covered by CIS?
Yes. GOV.UK includes site clearance, excavation, foundations and access works in construction services, so contractors normally deduct CIS.
Is plant hire taken out of the CIS deduction?
GOV.UK says equipment hired for the job is taken away before the deduction is applied, if you paid for it. Show it on its own line and keep the hire invoice.
Can I include fuel on my invoice?
Yes. GOV.UK says fuel used, except for travelling, is taken away before the CIS deduction. Keep receipts.
What if I own my digger?
The guidance mentions hired equipment, so check with HMRC or the CIS guidance before treating owned plant the same way.
Sources
- CIS contractors: make deductions and pay subcontractors – GOV.UK
- VAT domestic reverse charge for building and construction services – GOV.UK
- What you must do as a CIS subcontractor – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.