Invoices and Receipts for Building Work: What to Keep
What a clear invoice shows, how a receipt differs, and how to keep a simple file of paperwork that stays useful long after the job is finished.
The short answer
Every payment on a building job should be matched by an invoice before it and a receipt after it. A simple file of both is one of the most useful things you will keep about your home.
An invoice asks for a payment and says what it is for. A receipt, or a payment confirmation, shows the payment was made and received. Together they give you a clear record of who was paid, when, how much and for which part of the work.
That record helps during the job, when you want to check where you stand against the quote. It helps if a question about the work comes up later and you need to show what was agreed and paid. And it helps when you sell, because buyers and their solicitors often ask about work done to a property.
This guide covers what a clear invoice shows, how to check the details on it, and how to keep a project file without turning it into a chore. It is part of our guide to building quotes and payments.
The paperwork
Six documents worth keeping from any building job
Not all of these apply to every job. Keep whichever ones yours produces.
The accepted quote
The version you actually accepted, with the scope, price and payment terms. It is the reference point for everything else. Our guide to what a building quote should include shows what it should cover.
The terms or contract
Any terms and conditions attached to the quote, or a separate written contract if you signed one.
Agreed changes
Every change to the work or the price, agreed in writing before it was done. An email exchange is fine, as long as it states the change and the cost.
Invoices
One for each payment requested: the deposit, any stage payments and the final balance.
Payment confirmations
A receipt or confirmation for each payment, matched to the invoice it settles, plus your own bank record.
Completion documents
The workmanship warranty, any manufacturer guarantees for products fitted, and any building regulations certificate the work required.
The difference
An invoice asks. A receipt confirms.
It is easy to treat these as the same thing, and on a small job they sometimes arrive as one document marked paid. They do different jobs, though, and it helps to have both.
An invoice is the request for payment. It should say which company is asking to be paid, what for, how much, by when, and how to pay. On a building job it should also make clear which part of the work the payment relates to, such as the deposit, a stage or the final balance.
A receipt or payment confirmation shows that the money arrived. It should name the company that received it, the amount, the date and what it was for. If you pay by bank transfer, your bank statement shows the money left your account, but it does not show what the payment was for or that it was received against a particular invoice. A short confirmation from the company closes that gap.
If a job has several payments, it helps if each invoice shows the total contract price, what has been paid so far and what remains. That running total makes it easy to spot a mistake before it becomes a disagreement.
Checking an invoice
What a clear invoice shows
A quick check against this list takes a minute and catches most errors.
On the invoice
- The business name, and the company number if it is a limited company
- Contact details and an address
- An invoice number and date
- What the payment is for, referring to your quote
- The amount, with VAT shown separately if VAT is charged
- A VAT registration number if VAT is charged
- How to pay, and who the payment is made to
Worth checking against
- The company named in your accepted quote
- The payment terms in your quote or contract
- Any changes you agreed in writing
- What you have already paid
- The total contract price
- Bank details you have confirmed by phone
- Whether the stage it relates to is actually finished
VAT
Checking VAT on a building invoice
Only a VAT-registered business can charge VAT. If an invoice includes VAT, it should show the business's VAT registration number, and you can check that number using the free VAT number checker on GOV.UK. If VAT is charged without a number, ask about it before you pay.
If the business is not VAT-registered, it should not add VAT at all. That is not a problem in itself. Plenty of smaller firms are not registered, and their prices simply do not include it.
The other thing to check is consistency. If the quote was given including VAT, the invoices should add up to that figure. If it was given plus VAT, the VAT should appear on each invoice rather than as a surprise at the end. Our guide to VAT on building work explains the rules in more depth, and our answer on whether building work includes VAT covers the quick version.
Keeping it simple
How to keep a project file
A folder on your computer or a plain paper file both work. What matters is that everything for the job is in one place.
Start it when you accept the quote
Save the accepted quote and any terms first. Everything else hangs off them.
Add each change as it is agreed
Save the email or note confirming the change and its price. Our guide to variations and extra costs explains how to agree them.
Pair each invoice with its payment
When you pay, save the invoice and the confirmation together, with a note of the date and method.
Take photographs as you go
Before, during and after. Photographs of work that will later be covered up, such as insulation or a roof membrane, can be useful long after the job.
Collect the completion documents
Ask for the warranty, any product guarantees and any certificates before or at the final payment. Our guide to final payment and snagging covers that stage.
Store it with your house papers
Keep the file somewhere you will look for it when you sell or when a question about the work comes up.
Some building work needs building regulations approval. Where it does, you would normally expect either a completion certificate from building control or a certificate from an installer registered with a competent person scheme. Ask at quote stage whether your job needs approval and who will arrange it. The Planning Portal and GOV.UK both explain when approval is needed, and your local authority building control team can confirm. This is general information, not legal advice.
Good habits
Paying in ways that leave a clear record
A bank transfer or card payment creates its own record of the date, the amount and the account that received it. That record is useful on its own and even more useful alongside the invoice.
Cash does not leave that trail unless you get a written receipt for every payment, and a cash payment without paperwork is hard to evidence later. Our answer on whether you should pay a builder in cash goes into this further.
Where a company other than the builder receives payments, for example as the contractor's agent, the invoice or payment request should make that clear, and the company named on it may differ from the one on your bank record. That is expected in that arrangement, as long as the paperwork explains it. Paying an agent vs paying the contractor explains how it works.
If something is missing
Getting paperwork that has not arrived
Most missing paperwork is an oversight rather than anything more. A contractor who has spent the day on a roof may simply not have got round to it. Ask politely, in writing, and say exactly what you need: an invoice for the deposit, a receipt for the final payment, a copy of the warranty.
If the company is a limited company, you can check its registered name and number on Companies House, free of charge, and compare them with the paperwork. Our guide to checking a company on Companies House shows how.
If paperwork still does not arrive, keep your own record: the date and amount of each payment, what it was for, and your bank confirmation. That will not replace an invoice, but it means you are never without a record of what you paid.
Working with Mortaro
Your paperwork when Mortaro coordinates the project
Mortaro coordinates domestic building projects. Your written quotation names the appointed main contractor, sets out the work and the price, the payment terms and the contractor's warranty terms. It is the first document for your file.
Your construction contract is with the named contractor, who carries out the work, holds the insurance and provides the workmanship warranty. The 25% deposit and the balance on completion are legally made to them. We receive both as the contractor's payment administration agent and pass them on without unnecessary delay, and you can pay by bank transfer.
Questions, timings and paperwork all come to us. If you need something for your records, ask us and we will get it sorted with your contractor. Payments explained sets out each payment, and how quotations work shows what your quotation contains.
Straight answers
Questions about invoices and receipts
How long should I keep building invoices and receipts?
At least for as long as any warranty or guarantee runs, and ideally for as long as you own the property. They can be useful when you sell, and when a question about the work comes up years later.
Is my bank statement enough as a receipt?
It shows the money left your account, but not what it was for or that it was received against a particular invoice. Keep it, and ask the company for a short payment confirmation as well.
Should a builder give me a VAT invoice?
If they charge you VAT, ask for an invoice that shows the VAT and their VAT registration number. If they are not VAT-registered, they should not charge VAT at all.
What if the invoice names a different company from the quote?
Ask why before you pay. There can be a simple explanation, such as a company receiving payments as the contractor's agent, but it should be set out in your paperwork. If the explanation does not match your quote or contract, hold off until it is clarified in writing.
Will I need these documents when I sell?
Often, yes. Buyers and their solicitors commonly ask about building work done to a property, and warranties, certificates and the quote and invoices help answer those questions. Keeping them together from the start saves a search later.
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