What a VAT quote must show
A quote is not a VAT invoice, so it does not need an invoice number or a tax point. It does need enough detail that the customer can see exactly what they are agreeing to, and that you can turn it into an invoice later without re-pricing anything.
- Your business name, address and VAT registration number if you are registered
- The customer name and the site address if it differs from the billing address
- Each line of work with quantity, unit and rate — labour, materials, plant, skips, waste
- The net subtotal before VAT
- The VAT rate applied and the VAT amount as its own line
- The gross total the customer will actually pay
- The deposit due on acceptance and how long the price is held
Which VAT rate applies
If you are not VAT registered, do not add a VAT line at all and do not print a VAT number. Quote a single total and keep an eye on the registration threshold as your turnover grows.
- 20% standard rate — most repairs, maintenance, extensions and commercial work
- 5% reduced rate — some energy-saving installations, conversions that change the number of dwellings, and renovations of homes empty for two years or more
- 0% zero rate — construction of a new qualifying dwelling, and certain adaptations for disabled people
- Domestic reverse charge — construction work for another VAT-registered contractor in the CIS chain: you show the net amount and state that reverse charge applies, and the customer accounts for the VAT
The arithmetic, both directions
Adding VAT to a net price: net × 1.2. A £2,400 net job is £2,880 including VAT at 20%.
Pulling VAT out of a gross price: gross ÷ 6 at 20%. If a customer has a £3,000 budget including VAT, your net figure to price against is £2,500 and the VAT is £500.
At 5%, add with × 1.05 and extract with gross ÷ 21.
Wording that prevents disputes
- "All figures are net of VAT. VAT at 20% is shown separately and included in the total below."
- "Prices held for 30 days from the date of this quote."
- "Materials priced at today's supplier rates; significant supplier increases will be notified before ordering."
- "Domestic reverse charge applies: customer to account for VAT to HMRC." (CIS contractor work only)
Use the builder instead of a spreadsheet
RightQuoter keeps the net, VAT and gross lines in step automatically as you edit quantities and rates, so the maths cannot drift. Change the rate to 5% or 0% on a job and every total updates, including the deposit.