Progress payment invoice template UK (2026): stage bills, CIS and VAT
Progress payment invoice UK, short answer: a progress (interim / stage) invoice bills work completed to an agreed milestone on a larger job — not the final account. Who pays is set by the contract (main contractor or client). CIS may apply when a CIS contractor pays you for construction operations — soften with HMRC’s CIS overview and your accountant. A private householder paying for work on their own home is usually not CIS and is never treated as the CIS contractor for that home. If you are VAT-registered (threshold £90,000), show VAT correctly on taxable lines; if you are not registered, do not charge VAT.
Use this page when the PDF is an interim bill for a named stage (for example “first fix complete” or “35% of contract sum”). It is not a deposit taken before work starts, not a retention release, not a pure labour-only or materials-only goods/time shape, and not a day-rate / timesheet log (those sisters go deeper on rate unit). Sister pages for retention, stage payment, variation and snagging may still be planned — link only where useful. Figures below are illustrative only. Need the PDF now? Open the free invoice generator (Free: 5 invoices; Pro £7.99 / Pro+ £12.99).
Who pays, CIS and VAT on a progress payment invoice
Start with who is paying and which stage the PDF covers. Progress billing is about certified or agreed completion, not a CIS shortcut.
Who pays you | Typical progress job | CIS? | VAT if registered |
|---|---|---|---|
Private householder | Staged domestic extension / refurb on their own home | Usually no — never treat them as CIS contractor for own home | Often 20% on ordinary domestic works — soften Notice 708; do not invent 0% |
Main contractor / CIS contractor | Interim valuation on construction ops | May be in CIS base when ops are in scope — soften with HMRC / accountant | Normal VAT, or reverse charge only when eligible contractor tests met — never on a householder |
Developer / client QS | Milestone % against contract sum | Depends whether the payer is a CIS contractor for construction ops | Show net / VAT / gross if registered |
Final account (not this page) | Closing balance after snags / retention | Same CIS tests as the trade work — use final / retention sisters | Same VAT rules |
CIS rates (0% / 20% / 30%) sit with the contractor when CIS applies — InvoiceAdept does not decide status and does not file CIS300. VAT threshold is £90,000; £85,000 is stale. InvoiceAdept does not file VAT returns, MTD updates or Self Assessment.
Progress vs deposit vs retention vs stage vs labour-only vs materials-only
Use this page when the deal is an interim bill for work done to a named stage. Sister pages stay for sister intents.
Billing shape | When it fits | Invoice cue |
|---|---|---|
Progress / interim (this page) | Work completed to a milestone on a larger job | Stage name + % or valued amount; cumulative to date if useful |
Upfront sum before (or as) work starts | Deposit % or fixed sum; credit later on progress / final | |
Release of held retention | Retention % / release date; not a full interim valuation | |
Contract schedule of fixed stage sums | Named stage from schedule (overlaps progress — this page is the interim/progress angle) | |
Time with no materials lines | Hours / days x rate; “labour only” | |
Goods / parts; no labour line | SKU / qty / unit price |
If the PDF is only a booking deposit with no stage complete, use the deposit sister. If you are releasing retention only, use retention. Do not invent CIS on a householder progress bill.
What a UK progress payment invoice must include
Field | Always? | Progress notes |
|---|---|---|
Your name or business name | Yes | Match Self Assessment / Companies House |
Your address and contact | Yes | Email helps QS queries |
Customer name and address | Yes | Ltd = registered name; add site address if different |
Unique sequential invoice number | Yes | e.g. INV-PROG-2026-0007 |
Invoice date | Yes | Date of issue |
Tax point / supply date | If VAT-registered and different | Useful when valuation date differs from issue date |
Description of stage | Yes | Site, stage name, period, % or valued amount; “progress / interim — not final account” |
Contract / order reference | Strongly recommended | Helps main-contractor AP |
Payment terms | Yes | Due on receipt / 7 / 14 / 30 days (or contract valuation cycle) |
VAT number, rates, VAT amount | If VAT-registered | Show net, VAT and gross |
CIS UTR / deduction narrative | When a CIS contractor pays you within scope | Omit on true householder PDFs |
Bank details | Strongly recommended | Sort code and account name matching the invoice |
Never reverse-charge a private householder. Never invent CIS on a domestic own-home bill.
Copy-paste progress payment example (illustrative)
Scenario: sole trader electrician invoices a main contractor for progress payment 2 of 4 on a commercial fit-out. Stage: first fix complete. CIS registered at 20%. Not VAT-registered. Contract sum £12,000 (illustrative).
Line | Qty | Unit | Net |
|---|---|---|---|
Progress payment 2/4 — first fix complete, Unit B, week ending 12 Sep 2026 (25% of contract) | 1 | Stage | £3,000.00 |
Less: prior progress paid (stage 1) | Shown on statement / not re-billed | ||
Gross subject to CIS (this interim) | £3,000.00 | ||
CIS deduction @ 20% | −£600.00 | ||
VAT | Not registered — net only | ||
Amount payable by contractor | £2,400.00 |
Narrate on the PDF: “Progress / interim invoice for [stage] at [site]. Not a final account. CIS registered 20%. UTR on file.” If you later bill materials on a separate PDF, keep the progress narrative clear so AP can match valuations.
CIS, VAT and reverse charge cues
Topic | Practical rule |
|---|---|
Progress for a CIS contractor on construction ops | May be in CIS base — soften |
Householder own-home progress stages | Usually no CIS; never treat them as CIS contractor |
VAT threshold | £90,000 |
Domestic reverse charge | Never on a householder; contractor tests only |
Deemed contractor | £3 million construction-spend framing — not £1 million |
Deposit vs progress | Deposit is upfront; progress is for work done to a stage |
InvoiceAdept | Does not file CIS300, VAT, MTD or Self Assessment |
Agreeing progress stages before you start
Confirm stage names, percentages or valuation method, who certifies completion, and whether CIS will apply before you start. Put the stage list in the quote / contract so each PDF can cite the same labels.
Shape | How to show it on the PDF |
|---|---|
% of contract sum | “Stage 2 — 25% of £X — [description]” |
Fixed stage sum | One line with stage name and fixed amount from schedule |
Valued works to date | Gross to date less previously invoiced (show both on PDF or statement) |
Progress now, retention later | This page for interim; retention sister when releasing holdback |
Weak: “Progress as agreed £3,000.” Usable: “Progress 2/4 first fix Unit B week ending 12 Sep 2026 — 25% of contract £12,000 = £3,000 net, CIS 20%, not VAT-registered, not final account.”
Payment terms and getting paid
Main-contractor progress often follows a valuation / AP cycle (14 or 30 days). Householders often prefer 7 days or due on receipt for clear domestic stages. Put bank details on the PDF. Soften B2B late-payment interest with the contract and your accountant.
Common mistakes on progress payment invoices
Mistake | Fix |
|---|---|
Vague “progress as agreed” lump | Name the stage, site, period and % or valuation basis |
Calling a deposit a progress invoice | Use deposit until work for that stage is done |
CIS narrative on a householder progress PDF | Remove CIS lines when the householder pays |
Charging VAT when not registered | Net only until registered |
Stale £85,000 VAT language | Use £90,000 |
Billing final account as “progress” | Close with final / retention sisters when the job ends |
Reverse-charging a householder | Never — reverse charge is contractor-to-contractor when tests met |
Frequently asked questions
Is a progress payment the same as a deposit?
No. A deposit is usually upfront before (or as) work starts. A progress / interim invoice bills work completed to an agreed stage.
Does CIS always apply to progress invoices?
No. CIS may apply when a CIS contractor pays you for construction operations. Private householders on their own home are usually outside CIS — soften with HMRC / your accountant.
Can I put CIS deduction lines on a householder progress invoice?
Usually no. If a private householder pays for stages on their own home, leave CIS narrative off the PDF.
What VAT threshold should I use in 2026?
£90,000. Older £85,000 wording is stale for the compulsory threshold. Soften registration with your accountant.
How is this different from retention?
Retention invoices release held money. Progress invoices bill interim work. Keep them separate so AP can match valuations and holdbacks.
How is this different from stage-payment or labour-only pages?
Stage-payment sisters lean on a fixed schedule of stage sums; this page is the interim/progress angle. Labour-only is about no materials lines, not milestones.
Do I charge VAT on progress if I am not VAT-registered?
No. Net only until you are registered.
Where can I build the PDF quickly?
Use the InvoiceAdept free invoice generator — Free covers 5 invoices; Pro is £7.99 and Pro+ £12.99 when you need more.
Next step: build the progress payment invoice
Name the stage, keep householder vs contractor facts straight, show CIS arithmetic only when due, and show VAT only if registered (£90,000 threshold). Open the free invoice generator, paste the lines from the worked example shape, and send when the valuation window closes. InvoiceAdept does not file CIS300, VAT returns, MTD or Self Assessment for you.
Last reviewed: 16 September 2026.
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