Case studies · 5 min read

Tax for electricians and tradespeople

If you're a self-employed sparky, plumber, joiner or builder, your tax has one extra wrinkle most trades don't: the Construction Industry Scheme. Here's the whole picture, plainly.

As a self-employed trade you file a Self Assessment return once your earnings pass £1,000 a year, and pay tax on your profit after costs.

The Construction Industry Scheme (CIS)

If you work as a subcontractor for other builders or contractors, they usually have to deduct tax from your pay before you get it — typically 20% if you're registered for CIS (more if you're not) — and send it to HMRC on your behalf.

Good news: because that tax is taken off your gross pay before expenses, a lot of tradespeople have paid too much during the year and are due a refund once their return is done. Sorting that out is one of the most satisfying parts of the job for us.

Costs you can usually claim

Tools and equipment — and replacing them when they wear out or break.
Protective clothing and PPE — boots, gloves, hi-vis, hard hats.
Your van — mileage at 55p per mile for the first 10,000 miles and 25p after, or actual running costs plus capital allowances on the van.
Materials and consumables you buy for jobs.
Public liability and tool insurance.
Trade body membership and keeping your existing qualifications up to date.
Phone, admin and accountancy fees.

Making Tax Digital

Most full-time trades earn above the Making Tax Digital thresholds, so you'll move to digital records and quarterly updates as it phases in from April 2026. We keep the records, file the quarters and reconcile your CIS deductions at the year end.

On the tools all day? Leave the tax to us.

CIS, returns and Making Tax Digital, handled — from £20 a month.

See pricing →

This guide is general information, not personal tax advice. CIS rates, tax rates and allowances can change — always confirm the current position on GOV.UK or ask us to check your situation.

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