How to Start a Heating & Air Conditioning Business: UK HVAC Guide

Heating and air conditioning might not sound glamorous, but when the boiler breaks on a freezing morning or an office swelters through a summer heatwave, HVAC professionals become the most in-demand people in the room. 

If you’re hands-on, technically minded, and ready to be your own boss, starting an HVAC business in the UK could be your next big move.

From legal setup and certification to pricing strategies, marketing, and tax compliance, we cover everything you need to launch and grow a heating and air conditioning business built for long-term success.

Understanding the market

UK homes are still heavily reliant on gas-based heating, and the transition to greener alternatives means ongoing demand for HVAC upgrades and services.

In recent years, climate change and energy reforms have increased the public’s awareness of indoor air quality, efficiency, and energy bills. 

So, whether it's poor airflow in flats or outdated boilers in suburban homes, the need for qualified HVAC engineers has never been greater.

Successful HVAC businesses typically serve these audiences:

Additionally, contractors and developers frequently need trusted HVAC partners for renovations and new build projects.

A few compelling stats:

If your business can solve energy waste, improve comfort, or help clients stay compliant, you’re tapping into long-term, sustainable demand.

Legal requirements & company setup

The first legal step is to register your business. You can start as a sole trader – which is simple and fast – or form a limited company if you want added credibility and protection. A limited company separates your personal and business liabilities and can offer better tax efficiency as your income grows.

Beyond registration, certifications are essential: 

You’ll also need business insurance:

Lastly, be sure to follow Health and Safety Executive (HSE) guidance. Keep documentation for all safety inspections and maintenance jobs, especially when working with commercial clients.

Costs & finances

Startup costs

Starting an HVAC business can be capital-intensive but manageable with the right planning. Initial investments usually fall below £15,000, depending on your setup.

Let’s break it down:

That adds up to around £8,700 to £15,800 in initial outlay.

Ongoing costs

Ongoing costs include:

Revenue potential varies, but a one-person HVAC operation can bring in £60,000 – £100,000 annually depending on workload and pricing.

Common pricing examples:

If funding is needed, consider a government Start Up Loan, small business grants, or equipment leasing to reduce upfront expenses.

Client acquisition strategy

In the HVAC industry, trust and visibility are everything. Many clients are seeking urgent help and don’t want to spend time researching, and they opt for the most visible and best-reviewed option they find online or through a trusted referral.

Here’s how to win those early jobs:

Digitally, you’ll want to focus on:

Referrals are your best marketing asset. Always ask happy customers for reviews and offer incentives for repeat business or introductions to friends and neighbors.

Operations & capabilities

You don’t need to be a master technician on day one, but technical competence, customer communication, and time management are non-negotiables.

Here’s what a typical day might involve:

Solo operators can thrive with the right systems, but if you’re overwhelmed by demand, hiring a junior engineer or subcontractor helps scale the business. Some tradespeople even partner with plumbers or electricians to cross-refer clients.

Important capabilities to develop:

Tools, systems & automations

Running a modern HVAC business means going beyond paper diaries and handwritten quotes. The right digital systems let you spend less time on admin and more time on jobs.

Key tools to consider:

Other helpful automations:

A business account is essential for tracking income, paying suppliers, and preparing tax returns. 

What you get with ANNA when you’re starting a business

If you’re just getting your business off the ground, ANNA gives you everything you need to start strong, without the usual admin stress or long waiting times:

💫 A fully working UK business account, fast

💫 Support for registering and running your business

💫 Easy invoicing from day one

💫 Effortless expense management

💫 Built-in tools for getting paid faster

💫 Cashback and card benefits for early spending

💫 Helps you stay compliant and tax-ready

Taxes, accounting & compliance

Handling taxes and staying compliant is vital to the health and legality of your HVAC business. It affects everything from how you get paid to how much profit you actually keep. If you operate as a sole trader, you must:

If you form a limited company, your responsibilities expand:

You must also monitor your turnover. If it exceeds £90,000 in a 12-month period (2025 threshold), VAT registration becomes mandatory. 

Even before reaching that threshold, registering for VAT voluntarily can allow you to reclaim VAT on purchases like tools, van maintenance, and equipment.

Other essential tax-related practices include:

To stay on top of everything, many HVAC professionals use accounting software like QuickBooks, FreeAgent, or Xero. But if you’re looking for a simpler, all-in-one solution tailored to small UK businesses, ANNA can take a lot of stress off your plate.

With ANNA Money, you get:

ANNA even sends gentle nudges if you forget to invoice a client or track an expense, saving you time and helping you avoid missed payments or penalties.

Final tips & common mistakes

No business gets everything right from day one, but the more you prepare, the better your chances of long-term success. Many HVAC engineers have learned the hard way what works (and what doesn't) when launching and growing their business.

Here’s what seasoned professionals recommend:

✅ Always quote professionally – A well-structured, written quote gives clients confidence and avoids confusion. Follow up within 48 hours to improve conversion rates.

✅ Take photos of your work – Before-and-after shots can be powerful for your portfolio, website, or social media. Visual proof builds trust and credibility.

✅ Don’t compete on price alone – Cheaper quotes can win quick jobs but often reduce margins and attract clients who don’t value your expertise. Instead, sell your reliability, experience, and quality of service.

✅ Build supplier relationships – Whether it’s for parts, tools, or PPE, having good relationships with your suppliers can lead to better pricing, faster delivery, and priority service during busy seasons.

✅ Invest in systems early – Tools like ANNA for accounting and admin, or Jobber for job scheduling, will save you hours and reduce missed appointments or billing errors.

Avoid these common mistakes:

❌ Letting certifications or insurance lapse – This can lead to fines or even loss of work opportunities.

❌ Overbooking jobs – Being too ambitious with your calendar can result in late arrivals, rushed work, or cancellations, which hurt your reputation.

❌ Neglecting tax planning – Failing to track expenses or save for your tax bill can cause big problems at the end of the year.

❌ Ignoring your digital presence – In a world of Google reviews and online bookings, not being visible online can cost you clients.

You’re ready. The skills, the tools, and the opportunity are all there – what’s missing is a registered business to make it official.

Join 100K+ UK businesses already on board!