Set up VAT and CIS

I am not VAT-registered, do I need this?

No. Leave VAT registered off and your invoices do not show any VAT. Turn it on when you do register, you only need to do it once.

What VAT rate should I pick?

20% is the standard rate for most trade work. 5% applies to specific qualifying domestic energy work. Speak to your accountant if you are unsure, TradeBooked records what you choose.

How does CIS deduction work on the invoice?

Mark the invoice as CIS and apply the deduction rate. The customer-facing total reflects the deduction, and the CIS flag flows through to your accounting sync.

Will old invoices change if I update my settings?

No. Past invoices keep the VAT and CIS settings they were issued with. Only future invoices use the new settings.

When do I have to register for VAT as a tradesman?

You must register if your VAT-taxable turnover goes over £90,000 in any rolling 12 months (the threshold from 1 April 2024), or if you expect to go over it in the next 30 days alone. HMRC calls this a rolling test, not a "tax year" test.

Should I register voluntarily under the threshold?

Sometimes. If most of your customers are VAT-registered businesses (developers, letting agents, commercial), they reclaim the VAT, so registering lets you reclaim VAT on your own materials. For mostly domestic customers, voluntary registration usually makes you 20% more expensive without much upside.

Do I charge VAT on materials I have already paid VAT on?

Yes. VAT is charged on the gross customer-facing price of the line, not the net cost. You reclaim the VAT you paid your suppliers separately on your VAT return, so it nets out at the end of the quarter.

What is CIS and do I need to be on it?

CIS is the Construction Industry Scheme. If you are a subcontractor working for a contractor, the contractor deducts CIS at 20% (registered) or 30% (unregistered) from your labour element and pays it to HMRC against your tax bill. Most general consumer trades are not on CIS; subcontractors to bigger builders usually are.

What if I am just under the VAT threshold?

Plan ahead. Watch the rolling 12-month turnover, not the tax year. Crossing the threshold mid-year still requires registration. Speak to your accountant about whether to register early, hold steady, or restructure the work split between labour and materials.

What plan do I need?

VAT modes, CIS handling and line-itemised invoices are part of advanced invoicing, available on the Pro and Autopilot plans.