The electrician accountant who gets the trade.

If you're registered as a CIS subcontractor, the contractor deducts 20% from the labour element of your invoice and pays it to HMRC as an advance on your tax. If you're not registered, it jumps to 30%. The cost of materials you've supplied is excluded, deductions only apply to labour. We reconcile these deductions against your final tax bill, which for most electricians produces a refund.

If cashflow is tight because contractors withhold 20% on every job, gross payment status is worth pursuing, you get paid in full and settle your tax later. To qualify you broadly need £30,000 of net (labour) turnover (per director for companies controlled by five or fewer people), a UK business doing construction work, and an up-to-date tax and filing record. We check eligibility and handle the application and the annual review.

Usually no. Under the VAT domestic reverse charge, when you supply construction services to another VAT-registered business that's CIS-registered and isn't the end user, you don't charge VAT, your invoice states the reverse charge applies and the customer accounts for the VAT. You do still charge normal 20% VAT when you work directly for a private homeowner. We set your invoicing up so both are handled correctly.

Yes. Tools, test equipment and a work van qualify for the Annual Investment Allowance, giving 100% tax relief in the year you buy them (up to a £1m limit). If the van also has private use, the claim is reduced to reflect that. It's one of the biggest reliefs electricians underclaim, so we make sure every qualifying purchase is captured.

Using HMRC's simplified mileage method, you can claim 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that. This covers fuel, insurance, servicing and wear. Alternatively, if your van qualifies for capital allowances, we'll compare both methods and use whichever gives you the bigger deduction.

You must register once your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (or if you expect to breach it in the next 30 days). For electricians doing a lot of reverse-charge subcontract work, registering can actually put you in a refund position because you reclaim VAT on materials without charging it on labour, we'll advise on the timing.

It depends on your profit level and how you take money out. A limited company pays Corporation Tax at 19% on profits up to £50,000, with marginal relief between £50,000 and £250,000, and can be more tax-efficient at higher day rates, but adds admin and affects CIS gross payment turnover tests. We model both for your actual numbers before you decide.