Accountants for electricians
If you do CIS work for contractors and private jobs for householders, both kinds of income go on one tax return. You also carry costs other trades do not, from scheme membership to test equipment. We keep both sides of the work straight.
ACCA qualified accountants with over 20 years in practice
How electrical work is usually paid
Installing power and lighting systems counts as construction work, so on jobs for a contractor CIS comes off your pay: 20% if you are registered.
Private work and contractor work end up on the same tax return, and the CIS taken during the year is set against the bill for all of it.
In homes, a competent person scheme lets you self certify that your installation meets building regulations, instead of getting approval from building control. Your membership is a subscription your work depends on, and subscriptions are on HMRC's list of allowable costs.
Costs electricians can usually claim
From HMRC's rules on allowable expenses. Things you also use privately count only for their business share.
Test equipment and tools
Testers and other equipment you buy and keep for the business are claimed through capital allowances on traditional accounting.
Scheme membership
Competent person scheme fees are a subscription your business needs.
Keeping up to date
Business training, such as courses on the latest wiring regulations, is an allowable cost.
Cable and fittings
Stock and materials you buy for jobs count as a business cost.
Your van
Capital allowances, or 55p a mile for the first 10,000 business miles on the flat rate.
VAT for electricians
On work for a VAT registered contractor that is reported under CIS, the domestic reverse charge usually applies, so your customer accounts for the VAT rather than you. For a householder who is not VAT registered, normal VAT rules apply.
If you join the VAT Flat Rate Scheme, labour only building and construction work has a rate of 14.5% where materials are under 10% of turnover, and general building work 9.5%. Which suits you depends on how much material goes into your jobs.
You must register for VAT when taxable turnover for the last 12 months goes over £90,000.
More for electricians
Electricians near you
We work with electricians across North West London, all online.
The tax rules on this page come from GOV.UK and HMRC guidance. Last checked .
Questions electricians ask us
Can I claim my competent person scheme membership?
Yes. It is what lets you self certify work in homes, and subscriptions your business needs are an allowable cost.
Can I claim my multifunction tester?
Yes. Equipment you buy and keep for the business is claimed through capital allowances on traditional accounting, or as an allowable expense on the cash basis.
I do domestic jobs and contractor work. Does CIS apply to both?
CIS applies when a contractor pays you for construction work, and installing power and lighting is construction work. Both kinds of income go on one return, with the CIS taken counting towards the total bill.
Do I charge VAT on a rewire for a homeowner?
If you are VAT registered, yes, in the normal way. The reverse charge only applies to VAT registered customers on CIS work.
Is the Flat Rate Scheme worth it for an electrician?
It can be, but it depends on your materials. Labour only work has a 14.5% rate when materials are under 10% of turnover, and general building work 9.5%. We run both ways with your figures before you decide.
Electricians, let us handle the paperwork
Tell us how your work splits between contractors and private customers, and we will send you a quote.