Electrical Contractors accounting, handled.

A van bought outright qualifies for 100% Annual Investment Allowance — the full cost reduces taxable profit in the year of purchase. On hire purchase, the AIA still applies in full to the cash price in year one (interest is deductible separately as it accrues). On lease, you only deduct the monthly payments. For a £35,000 van and a profitable year, outright or HP usually wins on tax — we'll model it before you sign.

Yes — capital equipment owned at the point you start trading can be brought in at market value and claimed via capital allowances. Replacement tools, calibration costs, NICEIC/NAPIT registration, and PPE are all revenue-deductible as you incur them. We keep a tools register so claims are defensible if HMRC asks for breakdowns.

No — only your invoices to the VAT-registered builder go on reverse charge (because it's CIS-applicable B2B construction). Your invoices to homeowners are standard 20% VAT (or 5% on certain qualifying renovations). We set up two invoice templates in your accounting software so the right treatment fires automatically based on which customer type you pick.

Updates to existing qualifications (18th Edition amendments, periodic re-cert) are deductible. New qualifications that genuinely extend your trade — EV charge point, solar PV, heat pumps — sit in a grey zone HMRC has historically allowed for sole traders maintaining commercial relevance. We claim them where defensible and document the business purpose properly so they hold up at enquiry.

We write to your current accountant for professional clearance, request your trial balance, last accounts, and CIS records, and migrate everything into your chosen software (Xero, QuickBooks, FreeAgent or Sage). We do all the chasing — you don't even need to tell them you're leaving, we handle that letter too. Most electrical contractor switches complete inside ten days.