An electrician's quote is a fixed price for defined work and becomes a binding contract when accepted; an estimate is a considered guess that can move. Every invoice needs your business details, a unique sequential number, the date, the customer, a description of the work and property, the amount and the payment terms; if you are VAT registered (compulsory above £90,000 taxable turnover) HMRC requires a full VAT invoice with VAT number, tax point, net, VAT and gross figures. Business customers who pay late owe statutory interest at 8 per cent over the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998, with 30 days the default term where none is agreed.
- Quote for defined work (EICR, board change, new circuit); estimate only where the scope is genuinely unknown.
- A compliant invoice has a unique number, date, both parties, a description tied to the property, the amount and the terms.
- Business customers owe statutory interest at 8 per cent over base rate and fixed compensation of £40 to £100 per late invoice.
- Take a materials deposit on board changes and rewires, and respect the 14-day cancellation right for consumers.
- Tie every invoice to the certificate it relates to, and release the certificate on payment.
What is the difference between a quote and an estimate?
A quote is an offer to do specified work for a specified price; once accepted, you have a contract at that price and cannot add to it because the job took longer, unless the customer agreed a variation. An estimate is an indication of likely cost; the final price can differ, within reason.
| Quote | Estimate | |
|---|---|---|
| Price | Fixed for the described scope | Indicative; may change |
| Legal effect | Binding once accepted | Not binding as to price, within reason |
| Best for | EICRs, consumer unit changes, new circuits, EV chargers | Fault-finding, rewires in occupied houses, work behind existing finishes |
| Must include | Scope, exclusions, price, VAT position, validity, payment terms | Basis of the estimate, what would change it, rate for extras |
Most electrical jobs contain an unknown, so quote with clear exclusions: "Price assumes all existing circuits test satisfactorily; any remedial work will be quoted separately before it is carried out." That keeps the quote fixed and the extras honest. See how to price an EICR.
Consumers and the 14-day cancellation right
When you agree a contract with a consumer in their home, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give them 14 days to cancel. If they want you to start within those 14 days, get their written request and make clear they will pay for work done if they cancel; miss this and the consumer may not be liable to pay at all.
What must an electrician's invoice show?
Every invoice should carry:
- Your trading name, address and contact details, and company number if a limited company.
- A unique, sequential invoice number with no gaps.
- The invoice date and the date the work was completed.
- The customer's name and address, and the installation address if different.
- A description of the work: "EICR, 12 circuits, 3-bed house at [address], report reference [number]".
- Labour and materials, itemised where the customer expects it or CIS applies.
- The total due, payment terms and due date, and bank details.
- Your competent-person scheme registration number.
VAT invoices
Once your VAT-taxable turnover exceeds £90,000 in any rolling 12 months you must register, and every invoice to a VAT-registered customer must be a full VAT invoice. HMRC adds:
| Item | Requirement |
|---|---|
| VAT registration number | Yours, on every invoice |
| Tax point | Normally completion, or the invoice date if within 14 days |
| Unit price and quantity | For each line, excluding VAT |
| Rate of VAT per line | Standard rate 20 per cent for most electrical work |
| Net total, VAT amount and gross total | Shown separately |
If you are not registered, the invoice must not show or imply VAT.
CIS and reverse-charge VAT
If you subcontract to a construction contractor, the Construction Industry Scheme (CIS) applies: the contractor deducts tax from your labour (20 per cent if CIS-registered, 30 per cent if not), so your invoice must separate labour from materials. If you are also VAT registered and the customer is a VAT-registered CIS contractor, the domestic reverse charge applies: you do not charge VAT and the invoice says so. Both are covered in CIS and reverse-charge VAT on electrician invoices.
What payment terms should an electrician use?
Common practice:
| Customer | Typical terms |
|---|---|
| Homeowner | On completion or within 7 days; materials deposit on larger jobs |
| Landlord (direct) | 7 to 14 days; certificate released on payment |
| Letting agent | 14 to 30 days; invoice addressed to the agent for the landlord |
| Commercial client or facilities manager | 30 days; purchase order number on the invoice |
| Main contractor (CIS) | 30 days or per subcontract |
Under the Late Payment of Commercial Debts (Interest) Act 1998, if no period is agreed with a business customer the default is 30 days from the later of the invoice or delivery of the service. Do not accept "payment when the landlord pays us" from an agent; if the agent instructed you, your contract is with the agent.
Should I take a deposit?
For any job with significant materials, yes: a consumer unit and RCBOs, an EV charger, a rewire's worth of cable. A deposit covering the materials is normal and reasonable. Set it out on the quote, invoice for it separately, and give a receipt; your terms should say what happens to it if the customer cancels outside the consumer cancellation period. For EICRs and small jobs, deposits are unusual; payment on completion is standard.
What can I do about late payment?
Business customers
The Late Payment of Commercial Debts (Interest) Act 1998 applies to contracts between businesses, which includes landlords letting as a business, letting agents, facilities managers and main contractors. Once the agreed or default period has passed you are entitled, without it being in your terms, to:
- Statutory interest at 8 per cent above the Bank of England base rate, calculated daily from the day after the due date.
- Fixed compensation for recovery costs per invoice: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.
You do not have to claim it, and many electricians waive it for a good customer who pays a week late. But stating on the invoice that interest and compensation will be claimed under the Act tends to move the invoice up the pile.
Consumers
The Act does not apply to consumers. Interest on a homeowner's late invoice must be in the terms they agreed and reasonable under the Consumer Rights Act 2015, or it is unenforceable.
The chasing sequence
- Due date: polite reminder with the invoice attached.
- 7 days overdue: statement and a request for a payment date.
- 14 to 21 days overdue: formal reminder stating that statutory interest and compensation now apply, giving 7 days.
- 30 days overdue: letter before action, stating that a County Court claim will follow after 14 days.
- Claim: the online Money Claim service for debts up to £10,000 is designed for use without a solicitor.
Keep every step in writing and dated; a tidy paper trail wins a small claim.
How do I chase landlords and letting agents?
Letting agents are the most common source of slow payment for EICR work, usually process rather than malice: the agent pays from the landlord's client account, and an invoice that does not match their system sits in a queue. Address the invoice to the agent "for and on behalf of" the named landlord with the property address and works order reference, quote the certificate reference and inspection date, invoice on the day of the inspection, and put the release-on-payment term on the quote.
For landlords who instruct you directly, the lever is the certificate. Under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 the landlord must give the tenant a copy of the EICR within 28 days and can be fined up to £30,000 for non-compliance, so they need the report and will pay to get it. Say on the quote that the report is released on payment, and stick to it.
How should invoices and certificates be linked?
Every certificate should be traceable to an invoice and every invoice to a certificate: your scheme assessor samples certificates and may ask for job records, HMRC can ask to see the work behind an invoice, and a client's query two years later should take a search, not a morning. Use one job reference on quote, certificate and invoice, with the certificate number on the invoice line; see what to look for in electrical certification software. Keep both for at least six years, covering HMRC's requirement and the limitation period for contract claims; see electrical certificate retention and GDPR.
How Certio helps
Certio produces the EICR, EIC, Minor Works certificate and PAT records on the BS 7671 model forms and turns them into branded PDFs. Photograph the consumer unit and the circuit schedule drafts itself; point the phone camera at a Megger MFT-X1 and the reading goes straight into the schedule of test results, or dictate it while your hands stay on the probes. Suggested observation wording with the regulation reference is there for you to check and confirm. The judgement stays yours; the typing goes. Starter is free for 7 days, then £5 a month.