How to start an electrical business in the UK

Nobody issues a licence to trade as an electrician. The Scottish Government said in 2020 that anyone in Scotland could use the title with no qualifications, and I found no protected title elsewhere in the UK, though I can't rule out a change I haven't seen.

It's far from open season, though. In England, notifiable work must be self-certified through a scheme or checked by someone else. The Electricity at Work Regulations 1989 expect technical knowledge or experience, or proper supervision. And your signature goes on a document saying a home is safe.

So being allowed to start is the easy part. Getting registered, insured and trusted is the real job, and this is the order I'd do it in.

What Part P means for you

Part P of the Building Regulations covers electrical safety in homes. The current Approved Document P is the 2013 edition, for England.

Kitchens and outdoor work were dropped from the notifiable list in themselves under the 2013 version. Anything non-notifiable must still meet the Regulations.

Notifiable work has three routes:

1. Join a competent person scheme and self-certify.
2. Use a registered third-party certifier, England only, sorted before work starts.
3. Tell building control before you start, and have them inspect it.

Registered installers complete a BS 7671 certificate for every job. A Building Regulations compliance certificate then goes to the occupier and building control within 30 days.

Wales, Scotland and Northern Ireland

• Wales: its rules have differed from England's since 31 July 2014. The IET says so, but I couldn't confirm the Welsh list, so check before relying on the table above.
• Scotland: a vendor guide says Part P doesn't apply. Scottish Government landlord guidance names SELECT, NICEIC and NAPIT.
• Northern Ireland: Electrical Safety First says there's no legal requirement to register. I couldn't confirm more than that.

Your qualifications

The usual path runs through Level 2 and 3 diplomas, the 18th Edition, a Level 3 NVQ and the AM2 assessment (AM2S and AM2E are the variants). That leads to the ECS Gold Card, an industry card and not a legal licence.

Years on the tools with no paperwork? There's an experienced worker route. One training provider lists an EWA qualification, which needs five years' experience, plus a portfolio, an AM2-series assessment and the ECS health and safety test. Check the current rules with your awarding body.

Amendment 4

Amendment 4 to BS 7671:2018 was published on 15 April 2026, and training providers report the previous version was withdrawn on 15 October. I read this through NICEIC's statement and those providers, not the IET's own page.

• New or revised content covers batteries, Power over Ethernet, functional earthing for ICT, energy efficiency and Section 710.
• The 2382-26 exam is now the only assessment for new candidates.
• Providers say existing 18th Edition holders needn't resit, and offer a one-day update. Ask your scheme what evidence it wants.
• No 19th Edition date is confirmed. One instructor guesses around 2029.

For EICR work, I'd expect schemes and customers to want a specific testing qualification. Ask before you offer them.

Picking a scheme

GOV.UK lists BESCA, Blue Flame Certification, Certsure, NAPIT and OFTEC for electrical work in homes. NICEIC isn't named on that list. I understand it sits under Certsure, but I haven't confirmed that, so ask them.

A separate vendor, Trade2Base, puts annual scheme fees at roughly £350 to £750. NICEIC's page also asks for a supervisor with two years' responsibility for electrical work, examples of domestic work from the previous 12 months, records kept for 6 years, and accuracy records for test equipment.

The catch-22 for new starters

The assessor wants recent work. Customers want someone registered. My answer is to run both at once: work for an established contractor, or take non-notifiable jobs, while your evidence builds. Send anything notifiable through a third-party certifier or building control, and keep every certificate. Trade2Base suggests having three to six months of them ready. That's vendor advice, but a fair target. Switching schemes later can leave a gap in self-certification, it adds.

Is registration worth it? For domestic work, I'd buy it straight after insurance. It takes the hassle out of each job and hands customers something to check. A commercial-only contractor needs it less, although clients may still ask.

Kit and van

One vendor guide gives £2,000 to £4,000 for test equipment and first tools, and £8,000 to £15,000 for a used van. I haven't checked those against supplier prices, so treat them as rough.

Budget for calibration, because schemes want proof your tester's accurate, and keep a current copy of BS 7671.

Sole trader or limited company?

Older guides still say £13 for a company, which is out of date. Most electricians can begin as sole traders and change later. Take an accountant's advice once profits grow or contracts get bigger.

Tax, including CIS

• Self Assessment: register if you earn more than £1,000 in a tax year.
• VAT: compulsory once taxable turnover passes £90,000 in any 12 months.
• Mileage: the simplified rate for cars and goods vehicles went up to 55p a mile for the first 10,000 business miles from 6 April 2026.
• Making Tax Digital: in from 6 April 2026 above £50,000 of qualifying income, above £30,000 from April 2027 and above £20,000 from April 2028. Pick compatible software on day one.

Plenty of electricians begin by subbing to builders, so learn CIS early.

• Householders aren't contractors, so a normal job for a homeowner sits outside it.
• Working for a contractor? Register. They deduct 20% if you're registered, 30% if you aren't, and nothing with gross payment status.
• HMRC's guide treats installing lighting and power systems as construction. That means complete systems, not repairs or small additions, so a rewire and one extra socket can differ.
• Pay other trades and you may be a contractor too. Nil returns came back from 6 April 2026.

Check anything that's part of a bigger contract with your accountant.

Insurance

• Public liability: no legal requirement, but NICEIC and NAPIT both want at least £2 million. One fire claim could dwarf any job you'll ever price.
• Professional indemnity: NAPIT requires it for periodic inspection. I'd raise it with a broker for EICR work regardless, because a landlord relies on your report.
• Employers' liability: needed once you employ anyone, with at least £5 million of cover, and fines reach £2,500 a day. Close family can be an exception.
• Tools and van: ask your broker what public liability leaves out.

How customers will reach you

New electricians skip this, I'd expect, then lose good work on the phone. YouGov's 2026 poll for Answer4u found 37% of UK adults would abandon a business call within 60 seconds and just 6% would leave a voicemail. You'll be in a loft with your phone on silent.

Set up five things:

1. A separate business number.
2. A text-back for missed calls.
3. A free Google Business Profile showing your true area and hours.
4. A simple site with services, area and, once you have it, your scheme number.
5. A routine for asking every customer to review you.

The wording is free in our text templates.

Leave the scheme logo off until you're on the scheme. Displaying a trust or quality mark without authorisation is a banned practice under the DMCC Act 2024.

Winning the first jobs

36% of people who used a trader got to them through someone they knew, according to Citizens Advice's 2026 survey. So begin close to home and work outwards.

1. Tell everyone you know what you do, and where.
2. Ask builders, kitchen fitters and plumbers what they turn away. One kitchen fitter who needs a reliable sparky beats a dozen cold leads.
3. See letting agents once you can do EICRs.
4. Ask every customer for a review, every time.
5. Use lead sites to fill gaps, after reading lead sites or your own leads.
6. Charge properly from the start. The pricing guide shows the sum.

A first-month checklist

• Pick a legal structure and tell HMRC.
• Open a business bank account.
• Buy public liability cover.
• Start the scheme application, and collect evidence as you go.
• Get a business number and a missed-call text.
• Build your Google profile.
• Draw up a price list and quote form, with the cancellation notice.
• Choose Making Tax Digital software.

David Bell, founder of Real Business Systems

David helps small UK businesses get found, answer every enquiry and keep customers coming back. We sell some of the services mentioned here, and we say so where they come up.