Pricing and quoting, 29 October 2026
Free quote template for UK trades, with VAT and CIS lines
A UK trade quote should show your business details, the customer, a clear scope, a fixed price split into labour and materials, what's excluded, how long the price holds, payment terms and the VAT position. For a homeowner, add VAT at 20% if you're registered. For a VAT-registered contractor under CIS, the domestic reverse charge usually applies and they deduct CIS from the labour when they pay.
What should a quote include?
Everything the customer needs to say yes, and everything you need if there's a dispute later. In law, what you write about the job and the price can become part of the contract if the customer relied on it, so the scope and exclusions matter as much as the total.
The quote template
Copy this into your own letterhead or quoting software. The square-bracket fields are what you fill in. Delete the VAT lines that don't apply.
Business name Address, Phone, Email VAT number: VAT number, if registered Company number: if a limited company QUOTE Q-number Date: date Valid until: date, e.g. 30 days from today For: Customer name Site: Site address SCOPE OF WORK Stage or room 1: what you will do, in plain words Stage or room 2 Stage or room 3 PRICE Labour: £amount Materials: £amount Subtotal (excluding VAT): £amount Option A, homeowner or non-reverse-charge customer: VAT at 20%: £amount Total including VAT: £amount Option B, VAT-registered customer reporting under CIS: Reverse charge: customer to pay the VAT to HMRC. VAT Act 1994 Section 55A applies. VAT due under the reverse charge (20%): £amount Amount payable: £subtotal CIS: labour of £labour amount is subject to CIS deduction at the rate verified with HMRC. Materials are not. NOT INCLUDED e.g. decoration, skip hire, making good beyond filling chases, work found once walls are opened ASSUMPTIONS e.g. clear access to the work area, water and power on site, parking within 50m PROGRAMME Earliest start: date, Expected duration: number working days PAYMENT Deposit of % (£amount) on acceptance, stage payments, balance on completion. Payment within number days of invoice to: bank details Changes to the scope will be priced and agreed in writing before the work is done. TO ACCEPT Reply to this message or sign below. Signed: ____________ Name: ____________ Date: ________
Which VAT line do you use?
It depends on who the customer is and what they do with your work. For a homeowner, a landlord or a business that isn't VAT-registered, charge VAT normally if you're registered. For a VAT-registered customer who reports your work under CIS and sells it on, the domestic reverse charge applies to most building and construction services.
The same £4,200 job quoted to two customers
A bathroom first fix: £3,000 labour and £1,200 materials, by a VAT-registered firm.
| Subtotal before VAT£3,000 + £1,200 | £4,200 |
| To a homeowner: VAT at 20%£4,200 × 20% | £840 |
| Homeowner pays£4,200 + £840 | £5,040 |
| To a VAT-registered main contractor: reverse charge VATshown on the quote, paid by the contractor to HMRC | £840 |
| CIS deduction at 20% on labour£3,000 × 20% | £600 |
| Contractor pays you£4,200 − £600 | £3,600 |
Your numbers, not a promise. Change any figure to match your firm.
The reverse charge does not apply if the customer has confirmed in writing that they're an end user or intermediary supplier, such as a developer or a business having work done on its own premises. The full rules are in the VAT domestic reverse charge guide and the invoice wording in reverse charge invoice wording.
How should you write the scope and exclusions?
Write the scope the way you'd explain it to the customer on site: what you'll do, room by room, with the materials named where it matters ("supply and fit 600 × 600 porcelain floor tiles, customer's choice up to £30 a m²"). Vague scope is where disputes start. Exclusions are the other half: anything the customer might reasonably assume is included and isn't. Quote exclusions wording has a list you can lift.
Keeping your standard exclusions in a Word document and pasting them into each quote by hand is fine. It works, as long as the list is reviewed every time and not copied blind from the last job.
How long should a quote be valid?
Thirty days suits most domestic work. Shorten it when material prices are moving: the government's all-work materials price index was 6.0% higher in June 2026 than a year earlier. Say on the quote that prices will be rechecked after the expiry date. See spotting supplier price rises.
Where Nexley fits
Nexley is the AI back office for UK trade firms: five AI assistants run your tenders, quotes, buying, scheduling and invoicing. It connects to the tools you already work in, you run it all from WhatsApp, and you approve everything. £799 a month.
For quotes, Nexley builds them from your price list, rates, standard exclusions and branding. Send a voice note from the van on WhatsApp ("Mill Lane, bathroom first fix, two days, porcelain tiles") and Nexley drafts a quote with the right VAT and CIS lines for that customer, for you to check and approve before it's sent.
Common questions
Is a quote legally binding in the UK?
Yes, once it's accepted it forms a contract at that price, unless you agree changes or the price was an obvious mistake. An estimate is a best guess and can move. Quote vs estimate explains the difference.
Do I put CIS on a quote to a homeowner?
No. Private householders aren't contractors under the Construction Industry Scheme, so nothing is deducted. Show VAT if you're registered, and the total.
Do I have to be VAT-registered to send quotes?
No. You must register once your taxable turnover goes over £90,000 in a rolling 12 months, or you expect it to in the next 30 days. Until then, don't show VAT on your quotes.
Should I show labour and materials separately?
Yes for any contractor customer, because CIS is worked out on labour only. For homeowners it's optional, but it helps them see where the money goes.
Sources
- GOV.UK: Check when you must use the VAT domestic reverse charge for building and construction services
- GOV.UK: VAT domestic reverse charge technical guide
- GOV.UK: What you must do as a CIS contractor: make deductions and pay subcontractors
- GOV.UK: Construction Industry Scheme guide (CIS 340)
- GOV.UK: Register for VAT
- legislation.gov.uk: Consumer Rights Act 2015, section 50
- Citizens Advice: Problems with the cost of building work
Every rule, rate and date above was checked against these sources on the date shown at the top.
Topic: Pricing and quoting
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