How to write a quote for building work, with the right VAT

Short answer: a quote is a fixed price for the work it describes, so describe the work exactly. Put on it your details, the client and the job address, a number and date, the job line by line with labour and materials apart, VAT at the right rate, what is not included, how long the price holds, the payment terms and a place to accept. In the UK, charge VAT only if you are VAT-registered: 20 % on most home repair and renovation work, 5 % or 0 % only for the jobs listed below.

Quote or estimate?

They are not the same, and clients notice the difference.

• A quote gives a fixed final cost for the job, in writing, ideally broken down by element. It is valid for a stated period.
• An estimate is a rough approximation based on experience, and the final price may change.

That is how a quantity surveyor puts it in Homebuilding & Renovating. If you can't price part of the job yet — what is behind old tiles, say — quote what you can see and give a separate day rate or an allowance for the rest, clearly marked.

What to put on a building quote

1. Your business: name, address, phone, email, and your VAT number if you are registered.
2. Quote number and date, and how long it is valid, for example 30 days. Material prices change.
3. The client: name and address, and the job address if it is different.
4. The job: what you will do, room by room, with the measurements.
5. The lines: labour, materials and other costs (skip hire, parking, waste), each with a quantity, a unit and a price.
6. Totals: subtotal, any discount, VAT at each rate, and the total.
7. What is not included: taking up old flooring, rubble removal, making good, moving furniture. Most disputes start here.
8. Payment terms: deposit, stage payments, when the final payment is due.
9. When: the start date and how long the job should take.
10. Acceptance: a line for the client to sign and date.

Here is an example of the lines for tiling a small bathroom. The prices are examples only, not market rates.

Tiles supplied by the client: say so on the quote, so nobody expects them in the price.

Which VAT rate for building work in the UK?

• Not VAT-registered: if your taxable turnover over the last 12 months is £90,000 or less, you don't have to register (GOV.UK). Then you charge no VAT and show no VAT line.
• 20 %: the standard rate, for most repairs, maintenance and renovation of homes.
• 5 %: renovating or altering a home that has been empty for at least two years, and certain conversions, such as turning a building into homes (VAT Notice 708).
• 0 %: installing energy-saving materials in homes, such as insulation, heat pumps and solar panels, from 1 May 2023 to 31 March 2027; after that the rate goes to 5 % (VAT Notice 708/6).

A job can have lines at different rates: give each line its own rate and show the VAT per rate. The quote maker does this, and adds the usual note for the rate you used.

Working abroad or for clients there? Germany has no reduced rate for building work. The Netherlands charges 9 % on painting, plastering, wallpapering and the labour of insulating homes over two years old. Belgium charges 6 % on renovating a private home at least ten years old, and France 10 % (5.5 % for energy work) on homes finished over two years ago. In the US, sales tax depends on the state and city, and labour and materials are often taxed differently.

Show labour and materials apart

Clients compare quotes line by line, and splitting labour from materials makes yours easy to read. In some countries it also decides the tax: in Germany a private client can claim 20 % of the labour cost (up to €1,200 a year) from their income tax, and in the Netherlands painting labour and tiling labour carry different VAT rates.

Measure once, quote fast

Measure each room once in My renovation, and its floor area, wall area and skirting length go into the quote in one click, along with any calculation you saved. Our guide on how to measure a room shows the sums. For a tiling job, the tile layout planner gives the exact number of tiles and a printed cut plan to go with the quote.

Frequently asked questions

Is a quote legally binding?

Once the client accepts it within its validity period, a quote is generally treated as the fixed price for the work it describes. Extra work the client asks for later should be agreed in writing as a variation, with its own price.

How long should a quote be valid for?

Long enough for the client to decide, and short enough that your material prices still hold. Many tradespeople use 30 days. Write the date on the quote, not just "30 days".

Do I charge VAT on materials?

If you are VAT-registered, yes: materials you supply and fit as part of the job are charged VAT, normally at the same rate as the work. If you are not registered, you charge no VAT on anything.

Should I charge for writing a quote?

Most quotes for building work are free. If you charge, for example for a detailed survey or drawings, tell the client before you start.

What should I write if I can't see the full job yet?

Quote what you can see, list what you can't, and give a day rate or an allowance for the unknown part. Then the client knows the price can change and why.

Sources: GOV.UK, Register for VAT (£90,000 threshold from 1 April 2024); HMRC VAT Notice 708 (buildings and construction) and Notice 708/6 (energy-saving materials and heating equipment); Homebuilding & Renovating, "Quote vs estimate" (Tim Phillips, 2023).