Repair Invoice Template - UK

VAT should be charged on both labour and parts supplied as part of the repair service. If you're VAT-registered, add VAT to your invoice at the standard rate (currently 20%). Repair invoices should show labour and parts separately with their respective VAT amounts clearly displayed. HMRC requires you to retain records showing what was repaired, what parts were used, and labour time spent. The VAT treatment of repairs doesn't change whether it's electronic equipment, vehicles, or machinery.

Yes, separating labour and parts is essential for clarity and accountability. Parts should show the cost of materials supplied, while labour should reflect the time and expertise spent. This breakdown helps customers understand your pricing structure and makes it easier to handle queries if disputes arise. It also simplifies VAT accounting and provides HMRC with clear documentation. Some customers may also need this breakdown for their own accounting purposes or warranty claims.

Including warranty terms directly on your repair invoice protects both you and the customer. Specify the length of warranty (if any) and what it covers—for example, "30-day warranty on parts and labour for manufacturing defects." State what's excluded, such as damage from misuse or normal wear and tear. Clear warranty terms reduce disputes and demonstrate professionalism. Include your contact details for warranty claims. If no warranty is offered, state this explicitly to avoid misunderstandings.

Charge for diagnostics when it's a standalone service where the customer hasn't authorized repairs, or when diagnosis involves significant time and specialist equipment. If diagnostics lead to repairs you perform, you can typically fold diagnostic time into labour costs. However, if a customer declines repair and only wanted diagnosis, that diagnostic work should appear as a separate line item. Be clear on your invoice about whether diagnostic charges are refundable if the customer proceeds with repair elsewhere. This clarity prevents misunderstandings and disputes.

Always obtain written authorization before exceeding a quoted price. This can be email, a signed form, or notes in your repair system documented with a timestamp. Include the authorization reference on the invoice so there's a clear audit trail. If additional issues emerge during repair, contact the customer immediately with a revised quote and wait for approval before proceeding. This practice protects you from payment disputes and demonstrates professional service. Document the authorization date and method on the invoice itself.

Yes, marking up parts is standard practice and legitimate. Your markup covers procurement costs, storage, handling, and your expertise in selecting the correct component. Transparency is key—clearly show the parts cost and your labour separately so customers understand the invoice. Some businesses show supplier cost and markup; others show only the total parts charge. Consistency across your invoices matters more than disclosing your margin. Ensure your markup is market-competitive; excessive margins can damage customer relationships and invite price challenges.

Repair descriptions should be specific enough that the customer understands exactly what was fixed. Instead of "Laptop repair," write "Laptop Screen Replacement - Dell Latitude 7420" or "Software Update and Driver Installation." Include model numbers or serial numbers when relevant. Detailed descriptions protect you if disputes arise, as they show exactly what was repaired. They also help with record-keeping and if the customer needs to claim these costs against insurance or tax. Avoid vague terms like "miscellaneous" or "service charge."

HMRC requires you to keep detailed repair invoices for at least six years. Your records should show: what was repaired, the date, customer details, parts used with costs, labour time and rates, VAT charged, and the invoice number. Maintain receipts for parts purchased. If you use a repair management system, ensure it's integrated with your accounting software to avoid discrepancies. These records demonstrate you've accounted for income correctly and help you claim VAT input tax on parts you've purchased. Digital backups are sufficient but must be authentic and unaltered.