Quick Summary
- Van, tools, test equipment, materials and insurance are all allowable expenses.
- Gas Safe, NICEIC and NAPIT fees and refresher training are deductible.
- Work for contractors usually falls under CIS; work for homeowners doesn't.
- VAT-registered trades working for other contractors may need the domestic reverse charge.
- Making Tax Digital applies from April 2026 if turnover is over £50,000.
Electricians, plumbers and heating engineers have high running costs — vans, test equipment, materials and registration fees. Claiming all of them properly can make a real difference to your tax bill. Here's what self-employed trades in Glasgow need to know.
Allowable expenses
| Expense | Notes |
|---|---|
| Van | Capital allowances plus fuel, insurance, repairs and tax — or simplified mileage. Personal use must be excluded. |
| Tools and test equipment | Multifunction testers, pipe benders, press tools, flue gas analysers — usually 100% relief |
| Materials | Cable, fittings, pipes, boilers and parts bought for jobs |
| Registration schemes | Gas Safe, NICEIC, NAPIT, ELECSA and similar annual fees |
| Training | Refresher courses and updates, e.g. wiring regulation updates or ACS reassessments |
| Insurance | Public liability, professional indemnity, tool and van insurance |
| Protective clothing | Boots, gloves, high-vis and branded workwear |
| Phone, software and advertising | Job management apps, certification software, website, directory listings |
Training: what's allowable and what isn't
Training that updates or maintains the skills you already use in your trade is allowable — for example, a wiring regulations update or gas reassessment. Training for a completely new skill may not be allowable as a revenue expense — for example, a plumber retraining as an electrician. If you're unsure, ask before you book.
CIS: when it applies
If you work for a building contractor on construction work, you're likely to be in the Construction Industry Scheme. The contractor deducts 20% from your labour (30% if you're not registered). Installation work done for a contractor counts — but work done directly for homeowners is outside CIS.
CIS deductions often add up to more than the tax you actually owe, meaning a refund is due when you file. See our CIS tax refund guide.
VAT for electricians and plumbers
- You must register once turnover exceeds £90,000 in a rolling 12 months. Materials count towards turnover, so a boiler-heavy business gets there faster.
- If you're VAT registered and work for another VAT-registered contractor under CIS, the domestic reverse charge usually applies.
- Some energy-saving installations, such as heat pumps and solar panels in homes, currently qualify for a 0% VAT rate in Great Britain. Check the conditions before quoting.
Getting paid and keeping records
- Raise an invoice for every job and keep a copy
- Keep materials receipts linked to jobs
- Use a business bank account for all takings
- Keep a mileage log if you use simplified mileage
Making Tax Digital
From 6 April 2026, self-employed people with turnover (not profit) over £50,000 must keep digital records and send quarterly updates to HMRC using compatible software. The threshold drops to £30,000 from April 2027 and is planned to drop to £20,000 from April 2028. See our Making Tax Digital guide.
Sole trader or limited company?
Trades often move to a limited company once profits are steady above around £40,000 to £50,000. A company can reduce overall tax and limit your liability, but adds payroll, accounts and Companies House filings. We'll run the numbers with you.
Frequently Asked Questions
Is Gas Safe registration tax deductible?
Yes. Annual registration fees for schemes such as Gas Safe, NICEIC and NAPIT are allowable business expenses for self-employed tradespeople.
Can electricians claim their van as an expense?
Yes. You can claim capital allowances on the van plus running costs, or use simplified mileage rates instead. Any private use has to be excluded.
Do electricians and plumbers pay CIS?
Only when working for a contractor on construction work. Work done directly for homeowners isn't covered by CIS.
Are training courses tax deductible for tradespeople?
Courses that update or maintain skills you already use, such as wiring regulation updates, are usually allowable. Training for an entirely new trade usually isn't.
Do I charge VAT on heat pump or solar installations?
Installing certain energy-saving materials such as heat pumps and solar panels in homes in Great Britain currently qualifies for a 0% VAT rate, subject to conditions.
Accountant for Electricians and Plumbers
We claim every expense, sort out CIS and VAT, and get your tax return filed early — across Glasgow and Clydebank.
Sardar Muhammad, AAT
Sardar is the founder of LimeTree Accounting Solutions, an AAT-accredited practice in Govanhill, Glasgow. He works with sole traders, tradespeople, landlords and small limited companies across Glasgow and Clydebank.
This guide is general information based on UK and Scottish tax rules as at 13 October 2026. It is not personal advice. Rates and thresholds change, so speak to us about your own situation.