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E-invoicing for trades and construction
Most tradespeople who only work for homeowners won't notice any change. But if you're VAT registered and invoice builders, main contractors, letting agents or councils, e-invoicing is expected to apply to those invoices from April 2029.
Which of your jobs are affected?
| Job | If you're VAT registered |
|---|---|
| Kitchen, bathroom or repair for a homeowner | Not expected Keep sending normal invoices |
| Subcontracting for a builder or main contractor | Expected Invoice to a business |
| Work for a letting agent, landlord's company or property firm | Expected Invoice to a business |
| Work for a council, school, housing association or NHS trust | Expected Invoice to the public sector |
If you're not VAT registered, you're not expected to need e-invoices for any of these.
The VAT domestic reverse charge
Since 1 March 2021, most building and construction work between VAT-registered businesses that report under CIS has used the domestic reverse charge: the customer accounts for the VAT instead of you charging it. The government has said that concerns about the reverse charge and self-billing "have been addressed" in other countries with e-invoicing. The UK hasn't published how it will work on UK e-invoices yet.
What to do now: make sure you have each contractor's correct VAT number, and that your invoices clearly show when the reverse charge applies.
CIS deductions
The government hasn't said how CIS deductions will appear on e-invoices. Construction was one of the sectors HMRC and the Department for Business and Trade looked at in detail during 2026. Keep showing labour, materials and the CIS deduction clearly on your invoices, and watch for the roadmap at the Budget on 28 October 2026.
Self-billing
Some main contractors write the invoice for you (self-billing). If yours does, they're likely to deal with the e-invoice side, but the UK rules on this haven't been published. Ask the contractor what they plan to do.
Council, school and NHS work
You can already send e-invoices to public bodies. They have to accept e-invoices that meet the European standard EN 16931. NHS Supply Chain already asks its suppliers to use Peppol. Public bodies usually need a purchase order number or buyer reference on every invoice, so ask for it when you get the job.
Built for trades
PaySorted works out CIS on the labour, shows the reverse charge wording, knows which customers are homeowners and which are businesses, and already makes e-invoice files in the Peppol format for business and public sector invoices. See how PaySorted gets you ready →
Sources
- GOV.UK: VAT domestic reverse charge for building and construction services
- GOV.UK: Construction Industry Scheme
- Promoting electronic invoicing: consultation response (HMRC and DBT, 26 November 2025)
- Small Business Commissioner: spotlight on e-invoicing
- Procurement Act 2023, section 67: electronic invoicing
- Cabinet Office guidance: electronic invoicing and payment (updated 20 July 2026)
Want to send e-invoice-ready invoices now, without the hassle?
PaySorted already makes your invoices in the Peppol e-invoice format, checks every detail an e-invoice needs, and keeps up with the rules as they're confirmed. So you don't have to.
- E-invoice files in the Peppol format, made for you today
- Knows which customers need one: homeowners get a normal invoice, businesses and public bodies get an e-invoice too
- Flags anything missing before you send, like a VAT number or buyer reference
- Updated automatically as HMRC publishes the UK rules, with Peppol sending switched on before 2029 at no extra cost
- Chases late payers for you by email and text, so you get paid faster now
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