Do you put VAT on a quote? A plain guide for tradespeople
Get VAT wrong on a quote and one of two things happens: the customer gets a bill 20% bigger than they expected, or you swallow the difference. Neither is good. Here’s how to handle it.
If you’re not VAT registered
You don’t charge VAT and you don’t show a VAT line — your quote is simply the price. You also can’t reclaim the VAT on your materials, so that VAT is a cost to you and it needs to be inside your prices, not added on top. A clean total is fine; you don’t need to write “no VAT” unless it reassures a nervous customer.
You must register once your VAT-taxable turnover goes over the threshold (£90,000 in a rolling 12 months as of 2026 — check the current figure on gov.uk). Some trades register voluntarily below that to reclaim VAT on tools and materials. Whether it’s worth it depends on whether your customers are mostly VAT-registered businesses (who don’t feel it) or homeowners (who very much do).
If you are VAT registered
Every quote needs to make the VAT unmistakable:
- Show the net price (your figure), the VAT amount as its own line, and the gross total.
- Put your VAT registration number on the document.
- Make the total the customer will actually pay the most prominent number.
“£4,000 + VAT” on its own is legal but lazy — a chunk of customers read the £4,000 and forget the rest until the invoice lands. Spell it out: Subtotal £4,000, VAT (20%) £800, Total £4,800.
The domestic reverse charge
If you do construction work for another VAT-registered business that isn’t the end user — i.e. you’re a subcontractor — the domestic reverse charge usually applies. You don’t charge VAT; the customer accounts for it themselves; and your quote should say “Reverse charge: customer to account for VAT to HMRC.” This catches a lot of trades out. If your work is mostly for homeowners it won’t apply, but know it exists.
Reduced and zero rates
Some work qualifies for 5% VAT (certain energy-saving installations, some residential conversions, renovations of long-empty homes) or 0%. The rules are narrow and they change. If a job might qualify, get it confirmed before you quote — applying the wrong rate is your problem to fix later.
The simple version
- Not registered: no VAT line, VAT-inclusive prices, clean total.
- Registered: net + VAT line + gross, with your VAT number on the page.
- Subcontracting to a business: check the reverse charge.
- Unusual job: confirm the rate before you send the number.
This isn’t tax advice — check anything specific with your accountant or HMRC.
Set your VAT number and rate once. Scoped puts the net, the VAT line and the gross on every quote automatically, with your number on the document — so the total is never a surprise.
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