How to Start an Electrical Business in the UK

Starting an electrical business in the UK involves specific Building Regulations requirements for domestic work that you need to understand before taking on customers. The key is Part P - and how Competent Person Schemes let you self-certify without involving building control on every job.

Part P Building Regulations - what you need to know

Part P applies to electrical installation work in dwellings (houses, flats, and their outbuildings and gardens) in England and Wales. Scotland and Northern Ireland have separate but similar regulations.

Under Part P, the following types of work must be notified to or certified by a competent person:

• New circuits
• Replacement of a consumer unit
• Any work in a kitchen, bathroom, or other special location
• Any work outdoors

Minor works (like replacing a socket on an existing circuit in a living room) do not require notification.

Competent Person Schemes - how to self-certify your own work

Rather than notifying building control (and paying a fee) for every job, most UK electricians register with a government-approved Competent Person Scheme. This allows you to self-certify your work meets Building Regulations without involving the local authority each time.

The main approved scheme providers for electricians are:

• NICEIC (National Inspection Council for Electrical Installation Contracting) - the largest; widely recognised by domestic and commercial customers
• NAPIT (National Association of Professional Inspectors and Testers)
• ELECSA - part of the NICEIC Group
• STROMA

To join a Competent Person Scheme, you must demonstrate competency (typically via an EAL, City and Guilds 2365/2357, or equivalent qualification) and pass an assessment of your installation work. You pay an annual registration fee.

Once registered, you issue an Electrical Installation Certificate (EIC) or Minor Works Certificate for each job. You also notify your scheme provider of notifiable work, and they report it to the local authority on your behalf.

18th Edition IET Wiring Regulations (BS 7671)

All electrical installation work in the UK must comply with BS 7671, currently the 18th Edition IET Wiring Regulations (Amendment 2, published 2022). You must hold and be current with this standard to work legally. Training and exam for the 18th Edition is available through City and Guilds and EAL.

Electrical Installation Condition Reports (EICRs)

EICRs (periodic inspection and testing reports on existing installations) are a significant and growing part of an electrician's work in the UK. Landlords are legally required to have EICRs on rental properties in England every 5 years. You need testing equipment and software to produce these reports.

Insurance for electricians in the UK

Public liability insurance is required by all Competent Person Schemes. Standard minimum coverage for electricians is £2 million. Many commercial and public sector customers require £5 million or more.

Employers liability insurance is a legal requirement (minimum £5 million) if you employ anyone, including apprentices.

HMRC registration: tax, VAT, and CIS

Register as self-employed with HMRC for Self Assessment. File a tax return annually and pay income tax and National Insurance Class 2 and 4.

Electrical work in the UK is generally subject to 20% VAT. The 0% rate applies to qualifying energy-saving material installations (solar panels, battery storage) from February 2024. See our full UK VAT guide for tradesmen.

If you work as a subcontractor on construction jobs, register with the Construction Industry Scheme (CIS) to pay the lower 20% deduction rate rather than 30%. See our CIS guide.

EV charger installation and MCS

Installing EV chargers under OZEV (Office for Zero Emission Vehicles) grant schemes requires registration with an OZEV-authorised scheme. Check OZEV's current approved scheme list, as this has changed over time.

For solar PV installation under the Smart Export Guarantee (SEG) and MCS-certified systems, MCS (Microgeneration Certification Scheme) registration is required. This is separate from your Competent Person Scheme registration.

What you need before your first UK electrical job

• 18th Edition qualification (BS 7671 current edition)
• Competent Person Scheme registration (NICEIC, NAPIT, or equivalent)
• Public liability insurance certificate
• HMRC Self Assessment registration
• VAT registration when turnover approaches £90,000
• CIS subcontractor registration if working for contractors
• Testing equipment and certification software
• Professional invoicing from day one

Quoting and invoicing as a UK electrician

Every job needs a written quote before work starts and a proper invoice with the correct VAT rate after. See our guide on how to quote an electrical rewiring.

Get early access - it's free. PayReady generates professional electrical quotes and invoices from your phone with the correct VAT rate pre-set.

Summary: starting an electrical business in the UK

1. Hold current 18th Edition (BS 7671) qualification
2. Register with a Competent Person Scheme (NICEIC, NAPIT, etc.)
3. Take out public liability insurance (minimum £2m)
4. Register with HMRC for Self Assessment
5. Register for VAT when turnover approaches £90,000
6. Register with CIS if working for contractors
7. Set up professional invoicing before the first job