UK Tax Tools

Tax Guides for Tradespeople

Tax guides for skilled tradespeople — electricians, plumbers, construction workers, chefs, and hairdressers.

Salary & Tax Comparison (2026-27)

Profession Typical Salary Income Tax NI Take-Home Effective Rate
Electricians £38,000 £5,086 £2,034 £30,880 13.4%
Plumbers £38,000 £5,086 £2,034 £30,880 13.4%
Construction Workers £34,000 £4,286 £1,714 £28,000 12.6%
Chefs £28,000 £3,086 £1,234 £23,680 11.0%
Hairdressers £22,000 £1,886 £754 £19,360 8.6%

England/Wales/NI rates. Employed, no pension or student loan. Sorted by salary (highest first).

Individual Tax Guides

How tax works for tradespeople

Tradespeople split fairly evenly between direct employment, where tax and National Insurance are deducted through PAYE, and self-employment, where you file a self-assessment return and pay Class 4 (and, if you choose, Class 2) National Insurance on your profits. Many building-trade workers sit in between as CIS subcontractors, with contractors deducting a percentage from payments and passing it to HMRC as an advance payment towards your tax bill.

What makes trades distinctive is the range of agreed flat rate expenses HMRC publishes by occupation, covering the tools and equipment you buy and maintain yourself. These vary considerably — some trades get a specific industry rate, others fall back on a general default — so it is worth checking the rate HMRC has actually agreed for your line of work rather than assuming a figure.

Vehicle and travel costs are another recurring theme. Self-employed tradespeople can deduct the business proportion of van running costs, while employees and the self-employed alike can claim for travel to temporary workplaces, though not for the ordinary commute to a fixed base.

Tax essentials for this field

Flat rate tool expenses vary by trade

HMRC agrees flat rate expenses by occupation to cover the tools and equipment you buy and maintain yourself — building trades, joiners and labourers each have their own published figure, and trades without a dedicated rate fall back on a lower general default. Check the current HMRC list for your specific occupation rather than assuming a figure, and claim it via P87 or self-assessment.

CIS deductions if you subcontract

If you work as a subcontractor under the Construction Industry Scheme, the contractor deducts a percentage from your payments before you are even paid, at a lower rate if you are registered and a higher rate if you are not. These deductions count as advance payments towards your annual tax and National Insurance bill, reconciled when you file your self-assessment return — often producing a refund.

Van and vehicle costs

Self-employed tradespeople can deduct the full business cost of a van used solely for work, or the business proportion if it is also used privately. As an alternative for cars, HMRC's simplified mileage rate lets you claim a set amount per business mile instead of tracking actual running costs.

Employed or self-employed?

Your status determines how your tax is collected — PAYE for employees, self-assessment for the self-employed and CIS subcontractors. HMRC's Check Employment Status for Tax (CEST) tool can help if it is not obvious, and getting it wrong can leave you with an unexpected bill.

Frequently asked questions

Can I claim for my tools?

Yes, usually through an HMRC flat rate expense agreed for your trade — the exact amount depends on your occupation, and trades without a published rate fall back on a lower general default. Where your trade has no dedicated rate, you can generally claim the actual cost of tools you have bought and not been reimbursed for instead.

How does CIS affect my tax bill?

If you are a CIS subcontractor, the contractor deducts a percentage from your invoices before paying you, and HMRC treats this as money already paid towards your tax and National Insurance. You reconcile the actual amount owed when you file your self-assessment return, which often results in a refund if too much was deducted.

Do I need to register for VAT?

You must register once your taxable turnover passes the VAT threshold in any rolling 12-month period; below that, registration is optional. Many self-employed tradespeople register voluntarily earlier so they can reclaim VAT on tools, materials and van costs.

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Related Calculators

Last updated March 2026. Reflects 2026-27 tax rates. Typical salaries based on UK median data.