How to Start a Plumbing Business: UK Guide for 2025

Plumbing is one of those essential trades that never goes out of demand. No matter how advanced our tech gets, pipes will always burst and bathrooms will always need fitting. In fact, with the UK housing market constantly expanding and a nationwide focus on energy-efficient heating systems, skilled plumbers are in higher demand than ever.

Whether you’re a qualified tradesperson or just starting out, this guide covers everything you need to know about how to start a plumbing business. From market demand and setup costs to legal requirements, you’ll find everything you need to launch and build a business that flows from day one.

Why start a plumbing business now?

Before you grab your toolbox and start booking jobs, it helps to understand the plumbing market you’re stepping into. Let’s look at what’s driving demand, who your main clients will be, and where the best opportunities lie in 2025.

Demand and trends

The plumbing industry in the UK is growing. In fact, the plumbing, heating, and air-conditioning installation sector is set to reach around £24 billion in 2025, supported by strong demand for housing maintenance, upgrades, and energy-efficient systems.

There are three main trends driving growth right now:

• Eco-conscious upgrades: With the government pushing for net-zero goals, homeowners are investing in sustainable solutions, such as heat pumps, greywater recycling, and low-flow systems.
• Ageing housing stock: Much of the UK’s housing was built decades ago, which means there’s constant demand for repairs, replacements, and refits.
• Labour shortages: Skilled trades are in short supply, meaning less competition and better rates for qualified plumbers who offer good service.

Who are the clients?

Most new plumbing businesses start with residential clients - homeowners, landlords, and tenants who need quick, reliable fixes or planned installations. But as your experience and capacity grow, you can branch out into:

• Property management and letting agencies - consistent work maintaining multiple properties.
• Commercial and retail premises - fit-outs, maintenance, and emergency call-outs.
• Construction and new builds - partnering with builders and developers for ongoing projects.

Quick market snapshot

• The UK construction business and maintenance sector employs over 2 million people, and plumbing remains one of the most in-demand skills within this sector.
• Average hourly rates for plumbers range from £20-£95/hour, depending on region and expertise.
• The plumbing pipe segment (supplies, materials, etc.) is expected to grow at ~4.2% CAGR between 2025 and 2034.
• In 2024, Checkatrade recorded 1.8 million job searches just for “plumbing work”, including ~115,000 emergency plumbing searches.

How to start a plumbing business: Legal requirements

Starting a plumbing business is more regulated than many service industries, particularly so if you handle gas or structural plumbing. So, before you pick up your wrench, it’s vital you take time to protect yourself and your business from day one.

Choose your business structure

When you’re starting out as a plumber, one of the first decisions you’ll need to make is how to structure your business. Both sole trader and limited company setups work well in the trade industry - the right choice depends on how you plan to operate, your appetite for admin, and how quickly you expect to grow.

Sole trader:

• Ideal for one-person operations or freelancers starting small.
• Minimal paperwork - perfect if you just want to focus on the work, not the admin.
• Great if you’re testing the waters before investing heavily in tools, vehicles, or staff.

⚠️ Pay attention: As a sole trader, you are the business, which means you’re personally responsible for any debts or liabilities. So if something goes wrong on a job, your personal assets could be at risk unless you have the right insurance in place.

Limited company (Ltd):

Setting up as a limited company means your plumbing business becomes a separate legal entity. You’ll have limited liability, which protects your personal finances, and more flexibility when it comes to tax planning.

Why plumbers choose this route:

• It gives you extra credibility - especially when working with commercial clients, property developers, or larger contracts.
• You can pay yourself via salary and dividends, which can be more tax-efficient as profits grow.
• You can employ staff and build a recognisable brand under your company name.
• You’ll find it easier to secure trade accounts with suppliers and apply for tenders or public contracts.

💡Pro tip: Running a limited company means more paperwork - you’ll need to file annual accounts and confirmation statements with Companies House. Registering with ANNA helps you handle it all: you can get a business account instantly, and stay compliant with built-in reminders and easy document filing.

Compliance essentials

Running a plumbing business means more than just great technical work - you also need to stay compliant with UK regulations to protect yourself, your clients, and your reputation. Here’s what to have in place:

💡 Pro tip: Staying compliant isn’t just about avoiding penalties - it’s how you build credibility. Clients are far more likely to hire a plumber who’s properly registered, insured, and transparent about their work.

How to start a plumbing business: Financial planning

Knowing the costs of launching and running a plumbing business is essential for planning and avoiding unpleasant surprises. Let’s break it down into startup costs, ongoing expenses, and tips on pricing and revenue.

Startup costs

To get your plumbing business off the ground, you’ll need to budget for essentials like:

• Business registration - costs vary, but plan your business registration budget in advance so you’re not caught off guard
• Certifications, training, and trade memberships - Gas Safe, CIPHE, or other relevant bodies
• Insurance and licences - Public liability, Employer’s liability, and any permits
• Tools and equipment - wrenches, pipe cutters, inspection cameras, leak detection devices
• Van or work vehicle - ideally with storage and organisation for tools and parts
• Stock of parts and materials - pipes, fittings, valves, and other consumables
• Website, branding, and marketing collateral - business cards, flyers, online presence
• Software - booking systems, accounting tools, CRM for client management
• Working capital buffer - to cover the initial months before cash flow stabilises

💡 Total costs: Realistically, it should take you £5,000-£10,000 to launch, depending on what you already own and how ambitious your launch is.

Ongoing costs

Once you’re up and running, expect regular expenses such as:

• Fuel and vehicle maintenance - vans get you to jobs, but they need care
• Replacement tools and wear and tear - especially for specialised equipment
• Materials and parts inventory - keep enough stock for emergencies and routine jobs
• Marketing and advertising - local directories, flyers, Google Ads, or social media
• Software subscriptions - bookkeeping, booking, and CRM platforms
• Salaries or subcontractors - if you hire extra hands
• Admin overheads - phone, internet, office supplies

Pricing

• Hourly rates: Typically £20-£90+ depending on location, experience, and job complexity.
• Premium rates: Emergency call-outs, evenings, and weekend jobs often command extra.
• Parts margins: Usually 20-40%, so factor this into quotes.
• Overheads: Always calculate your running costs and include a markup to cover them.

💡 Pro-tip: Start simple, track every expense, and review your rates regularly. Over time, you can increase efficiency, reduce waste, and grow profitability without increasing your workload.

Running a plumbing business: Day-to-day

Running a plumbing business is all about smart planning. Here’s what you need to know to operate efficiently and scale over time.

Essential skills and qualifications

To deliver a professional service and stay compliant, make sure you have:

• Plumbing qualifications - NVQ or equivalent covering drainage, pipework, and installations.
• Gas Safe registration - mandatory if you work with gas appliances or boilers.
• Knowledge of UK building codes and regulations - ensures safe, compliant work.
• Customer-facing skills - communication, quoting, estimating, and service excellence.
• Time and project management skills - planning multiple jobs and managing deadlines effectively.

Daily workflow

A structured routine keeps your business running smoothly. Typical daily tasks include:

1. Job routing and scheduling - plan the day’s jobs, respond to inquiries, and accept quotes.

2. Travel and callouts - travel between sites efficiently, handle emergencies as needed.

3. On-site work - repairs, installations, or inspections.

4. Parts management - order, track, and maintain stock levels.

5. Admin tasks - invoicing, bookkeeping, marketing, and client follow-ups.

6. On-call / emergency availability - initially, evenings and weekends may be needed to handle urgent jobs and build your reputation.

💡 Pro-tip: Document your workflow early and stick to it - using scheduling software and mobile apps can save hours of admin each week. Over time, this will free you up to take on more jobs or focus on higher-value contracts.

Taxes and compliance

Maintaining financial compliance in your plumbing business is crucial for avoiding fines and maximising your profits. Here’s all you need to know about bookkeeping:

Tax obligations

Your tax obligations vary depending on your business structure:

Record keeping

Keeping detailed financial records is crucial for smooth accounting and tax filing:

• Invoices - Include your business name, address, VAT number (if registered), and a full itemised list of services or parts.
• Receipts and expenses - Keep records of all purchases: tools, parts, fuel, vehicle maintenance, and any other business costs.

💡 Pro tip: Accurate records make VAT claims easier, support tax deductions, and give you a clear picture of your business performance. With ANNA’s integrated tools, you can automate your bookkeeping, sync transactions directly from your business account, and generate VAT reports effortlessly - all from just one app.

VAT Registration

As your business grows, you’ll also need to think about VAT registration. Here’s what you should know:

• You must register for VAT if your taxable turnover exceeds ~£90,000 per year.
• You can choose to register voluntarily earlier - this is useful if you want to reclaim VAT on purchases and build credibility with clients who expect VAT invoices.

End-of-year filing

Here’s what you’ll need to file at the end of the tax year:

Start your plumbing business easily with ANNA

Starting and running a plumbing business involves juggling registrations, compliance, finances, and day-to-day admin. That’s where ANNA comes in, making it simple to focus on the work you love.

Here’s how ANNA supports new plumbing business owners:

• Quick company registration - Set up as a sole trader or limited company in minutes, with no confusing paperwork.
• Business bank account and card - Keep personal and business finances separate; track income and expenses easily.
• Accounting made easy - ANNA automatically tracks every payment, calculates your VAT in real time, and files directly with HMRC. No need for an accountant - it’s faster, cheaper, and more precise.
• Handle your Self Assessment in minutes - ANNA’s brand new, HMRC-approved tool can fill out your Self Assessment automatically. All you have to do is review the information.
• Real-time insights - See instant tax estimates and use smart money pots to set aside funds for future payments, so you’re never caught off guard.
• Automated reminders - Never miss a Confirmation Statement, VAT return, or tax deadline.
• Ongoing support - 24/7 guidance from a friendly team if you have questions about banking, accounting, or compliance.

Start your plumbing business with ANNA today and get everything set up in one place - fast, simple, and stress-free.