"Can you send me a pro forma?" is a question tradespeople sometimes get from businesses, letting agents and contractors. It sounds technical, but the idea is simple.
The short answer
A pro forma invoice is a document that looks like an invoice but is sent before the work is done or the goods are supplied. It tells the customer what they'll be charged, often so they can pay a deposit or pay in advance, or so their accounts team can approve the spend.
It isn't a demand for payment in the same way as a real invoice, and it isn't a VAT invoice.
Pro forma vs quote vs invoice
- A quote is your price for a job. The customer can accept it or not.
- A pro forma invoice confirms what the customer will be charged once they've agreed, usually so they can pay upfront or arrange payment internally.
- An invoice asks for payment for work you've done or goods you've supplied. It's the document that counts for your records and for VAT.
In practice, many trades use a quote and a deposit invoice instead of a pro forma. That works just as well.
The VAT rules
If you're VAT-registered, this matters. HMRC's VAT guide says an invoice marked "pro-forma" or "this is not a tax invoice" can't be used as evidence for reclaiming input tax. In other words, your customer can't reclaim VAT using a pro forma.
So once the work is done or you've been paid, you still need to issue a proper VAT invoice. HMRC's guidance on VAT records says you'd normally issue a VAT invoice within 30 days of the date you make the supply.
To avoid confusion, mark your pro forma clearly, for example "Pro forma: this is not a VAT invoice", and give it a different number from your real invoices.
When a tradesperson might use one
- Upfront payment from a new business customer who wants paperwork before releasing funds.
- Letting agents or companies that need a document to raise a purchase order.
- Taking a deposit for expensive materials before you order them.
For most homeowner jobs you don't need a pro forma at all. A clear quote, followed by an invoice when the work is done, is simpler for everyone. Pro formas mainly help when a business customer's accounts team needs a document before they can release money.
How to make one with TradeDocsNow
We don't have a dedicated pro forma template yet. You can use the quote generator and add a note such as "Pro forma: this is not a VAT invoice. Payment of £X required before work starts." When the job is done, create the real invoice in the invoice generator. The "Turn this quote into an invoice" button copies the details across.
Ready to make one? Free, no sign-up, and your details stay on your device.
Frequently asked questions
Is a pro forma invoice legally binding?
It's usually treated as a formal offer or a confirmation of price, not a demand for payment. Your agreement with the customer is what matters. This guide isn't legal advice.
Can my customer reclaim VAT on a pro forma?
No. HMRC says invoices marked pro forma can't be used as evidence for reclaiming input tax. Issue a proper VAT invoice once the supply is made.
Should a pro forma have an invoice number?
Give it a reference, but keep it separate from your invoice number sequence, for example PF-001.
This guide is general information, not tax or legal advice. Rules change, so check GOV.UK for the latest position.