Price a job and quote it properly.
Put in your materials, the markup you add, and your labour. Add VAT if you're registered, and get a clean, professional quote you can copy or download in seconds. Built for UK tradespeople and small contractors. Free, no sign-up.
A guide, not tax or financial advice. Check your VAT position with HMRC or an accountant. Nothing you type here leaves your browser.
Cost, price and VAT, made simple.
Your cost is what you pay for materials. Your price is what you charge the customer for them. The difference is your markup, and it covers the time you spend sourcing, collecting and carrying the risk on those materials. A 20% markup on £500 of materials means you charge £600, so £100 stays with you. Labour is then priced on top.
VAT at the standard 20% is only added if you are VAT registered. If you are registered, the figure the customer pays includes that VAT, and you pass it on to HMRC. If you are not registered, you do not add VAT at all, and the net subtotal is the total you quote. Some work qualifies for the reduced 5% rate, so check the gov.uk VAT rates page if you are unsure.
The VAT registration threshold is based on a rolling 12-month turnover, not your tax year, so it is worth keeping an eye on if your trade is growing. Once you go over the threshold in any 12-month period you have to register, and then VAT goes on your quotes from that point.
A clear written quote, with the work described and a price valid for a set period, is the simplest way to avoid disputes later. It sets out what is included and what it costs before anyone agrees to go ahead, so there are no surprises when the invoice lands. Stating your payment terms up front — any deposit, and how many days the customer has to pay once invoiced — sets the expectation early and makes chasing a late payer far easier.
If you work as a subcontractor in construction, the Construction Industry Scheme (CIS) usually applies. The contractor you invoice deducts tax before paying you and sends it to HMRC against your own bill: 20% if you are registered and verified, 30% if you are not registered, and 0% if you hold gross payment status. The deduction comes off the labour element only — materials and VAT are never included — so it is worth itemising labour and materials separately on the quote. The money isn't lost; it counts towards your tax and is reconciled through Self Assessment or your company's account.
Quote it, then keep it all in one place.
Stead keeps your jobs, quotes, invoices and paperwork together, so the numbers you work out today are still there when you need to chase, invoice or check what you agreed.