The Ultimate Guide to Starting a Trade Business in the UK
Everything you need to go from qualified tradesperson to successful business owner. From legal setup to your first £10k in revenue.
Table of Contents
1. Legal Structure & Registration
Most tradesmen start as a Sole Trader. It is simplest, cheapest, and you keep all the profit after tax.
How to Register
- 1. Go to gov.uk/set-up-sole-trader
- 2. Register for Self Assessment (you will file a tax return annually)
- 3. Get a National Insurance Number (if you do not already have one)
2. Insurance You Actually Need
Working without insurance is a risk you cannot take. At minimum, you need:
Public Liability
Covers injury or damage to client property. Most agents require £2M minimum.
Professional Indemnity
Covers mistakes in your work. Essential for design/consultancy work.
Employers Liability
Required if you employ anyone. £5M cover is standard.
Tools Cover
Covers theft of tools from van. Often added to van insurance.
3. Tax, VAT & CIS Explained
Key Thresholds
- VAT: Register when you hit £85,000 turnover (voluntary registration possible)
- CIS: If you work for main contractors, 20% tax is deducted at source
- Allowable Expenses: Van, tools, phone, insurance, training, website costs
4. Branding & Website
Customers search online first. You need a professional presence.
- • A clean, mobile-friendly website showing your services
- • Google Business Profile (essential for local search)
- • Consistency across social media
- • Professional van signage
5. Your First 50 Customers
Fastest Path to Customers
- 1. Checkatrade/Trustatrader membership - Leads come to you
- 2. Local Facebook groups - Introduce yourself, help people
- 3. Google Business Profile - Show up in local searches
- 4. Ask for referrals - Every happy customer knows someone
6. Scaling: From One-Man-Band to Team
When you have more work than you can handle, you are ready to scale. But do not rush this.
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