Statutory Compliance • Worked HMRC CIS Example

HMRC Reverse Charge VAT Invoice Example (20% CIS + Section 55A Worked Breakdown)

See an exact, line-by-line worked example of a UK Domestic Reverse Charge VAT invoice separating CIS Labour (20% deduction) and Materials (0% CIS deduction) with mandatory Section 55A VATA 1994 wording.

Invoice Simple Switch Guide Joist Export & Migration Guide Wave Starter Alternative Xero Early Cap Solution Missed-Call AI Quote Link Harvest Time CSV & Timer UK HMRC Sec. 55A CIS Australia NSW SOPA Texas Property Code Ch. 28 Ontario Construction Act s. 6.1 Worked HMRC CIS Example Invoice Simple CSV & PDF Export ATO Tax Invoice & 47% ABN Rule SARS VAT Act Section 20

Step-by-Step Execution

Action Checklist

1. Itemise Labour and Materials on Separate Lines

HMRC requires CIS deductions (20% verified or 30% unverified) to be withheld strictly from labour (plus plant hire with operator), never from direct materials.

2. Show 20% Reverse Charge VAT Rate Without Adding It to the Payable Total

Under VAT Notice 735 / Section 55A VATA 1994, state the 20% (or 5%) VAT rate or notional VAT amount (£660.00 in the example above) while keeping VAT Payable at £0.00.

3. Generate Your Worked UK CIS Reverse Charge PDF in 1 Click

Click the preset button below to load the UK CIS Reverse Charge studio pre-configured with Section 55A wording, UTR, and VAT registration fields.

Verified Specification

Key Rules & Benchmarks

Worked Labour Line	£2,500.00 Net • £500.00 Notional Reverse VAT • -£500.00 CIS (20%)
Worked Materials Line	£800.00 Net • £160.00 Notional Reverse VAT • £0.00 CIS Deduction
Total VAT Collected by Subcontractor	£0.00 (Main Contractor declares £660.00 in Box 1 & Box 4)
Net Cash Paid to Subcontractor	£2,800.00 (£3,300.00 Subtotal minus £500.00 CIS)

Worked HMRC Reverse Charge & 20% CIS Invoice Calculation (£2,500 Labour + £800 Materials)

1. First-Fix & Second-Fix Subcontract Labour: £2,500.00 (Subject to 20% CIS Deduction = -£500.00; Domestic Reverse Charge 20% VAT = £500.00 notional)
2. Direct Materials Supplied (Fixings, Pipework & Consumables): £800.00 (0% CIS Deduction; Domestic Reverse Charge 20% VAT = £160.00 notional)
• Gross Subtotal (Excl. VAT): £3,300.00
• VAT Charged on Invoice: £0.00 (Customer accounts for £660.00 Reverse Charge VAT to HMRC under s. 55A VATA 1994)
• Less 20% CIS Deduction (on £2,500.00 Labour only): -£500.00
• Net Payable by Main Contractor to Subcontractor: £2,800.00

1-Click Statutory Studio Preset

Generate a Compliant Worked HMRC CIS Example Vector PDF Below

Upload any existing PDF/screenshot invoice or CSV export to auto-populate your business profile, client book, and line items—or jump straight into the pre-configured statutory studio and calculator.

Upload Existing PDF / Image Import Clients / Invoices CSV UK 20% VAT & CIS Reverse Charge Calculator → 24/7 AI Quote Link →

Pre-Configured Live Vector PDF Studio (UK_CIS_REVERSE_CHARGE)

Customize & Download Your Compliant PDF Right Now (Zero Signup Wall)

⚡

Set Up Your Business Brand, AI Logo & Starter Price Book in 60 Seconds

Auto-brand every invoice with your custom AI logo, trade rate card, and 24/7 AI quote link. Skip & resume anytime.

Preset Scopes:

Description Qty Unit Rate (GBP) Disc % Tax Total Actions

GBP 450.00

GBP 540.00

GBP 220.00

Subtotal GBP 1,210.00

VAT (20%) GBP 242.00

Total Due GBP 1,452.00

Frequently Asked Questions: Worked HMRC CIS Example

Does the VAT Domestic Reverse Charge apply to materials as well as labour on a mixed invoice?

Yes. Unlike CIS income tax deductions (which apply only to labour), HMRC's VAT Domestic Reverse Charge applies to the entire invoice (both labour and materials) whenever the reverse-charge element exceeds 5% of the total supply.

Which boxes on the UK VAT Return do subcontractors use for Reverse Charge invoices?

Subcontractors do not enter any output tax in Box 1 for reverse charge supplies; they only enter the net value of the sale (e.g. £3,300.00) in Box 6 of the VAT Return.