Work out exactly what you need to charge per day to hit your income goals. Factor in expenses, holidays, and tax to set a day rate that actually works.
Use your day rate as a foundation for professional proposals. QuoteSmith generates branded PDF quotes with AI-powered scope of work and costings.
Try QuoteSmith Free for 7 DaysSetting your day rate is one of the most important decisions you will make as a self-employed tradesperson. Charge too little and you will struggle to cover your costs. Charge too much and you may price yourself out of work. This guide helps you find the right balance.
Many tradespeople compare their day rate to what they earned as an employee and assume they are better off. But self-employment comes with significant costs that employed tradespeople do not pay:
A common mistake is dividing your income target by 365 or even 260 (weekdays). In reality, after holidays, bank holidays, sick days, and admin time, most tradespeople have around 220 to 240 chargeable days per year. If you work a 4-day week, that drops to about 180 days. This calculator works out your exact chargeable days based on your working pattern.
Your day rate is a useful internal benchmark for pricing work. Most experienced tradespeople use it to estimate how long a job will take and then quote a fixed price to the client. For example, if your day rate is £250 and a job will take 3 days, you know you need to charge at least £750 plus materials. Tools like QuoteSmith can help you turn this calculation into a professional proposal that wins the job.
Day rates vary significantly across the UK. London rates are typically 25-40% higher than the national average to reflect higher living costs and travel expenses. Northern England, Scotland, and Wales tend to be lower. Your day rate should reflect your local market while ensuring you cover your costs and earn a fair living.
Common questions about day rates for UK tradespeople.
Average day rates for UK tradespeople in 2025 range from £150 to £350+ depending on the trade and region. Electricians typically charge £200-£300 per day, plumbers £200-£280, general builders £180-£250, carpenters £180-£250, and painters £150-£220. London rates are typically 25-40% higher.
Start with your desired take-home pay. Add your annual business expenses (van, insurance, tools, fuel, accountant, phone). Add estimated tax and National Insurance. Divide the total by your number of chargeable working days (typically 220-240). This gives you the minimum day rate you need to charge.
Most tradespeople work around 220-240 chargeable days per year. There are 260 weekdays. Subtract 8 bank holidays, 20-25 days holiday, and allow for 5-10 days of sickness, admin, and quiet periods. For a 5-day week with 4 weeks holiday, that is about 228 chargeable days.
Not necessarily. You might adjust based on the type of work, the client (commercial vs domestic), travel distance, job duration, and market conditions. Use your calculated day rate as a baseline and adjust from there. Specialist or urgent work can command a premium.
Both approaches work. Day rates are simpler and protect you if a job overruns. Per-job quotes are preferred by most customers for cost certainty. Many experienced tradespeople use their day rate internally to price jobs, then present a fixed quote to the customer.
As a sole trader in 2025/26, you pay 0% income tax on the first £12,570 (personal allowance), 20% on £12,571-£50,270, and 40% above £50,270. You also pay Class 2 NI (£3.45/week) and Class 4 NI (6% on profits between £12,570-£50,270, 2% above). Your effective rate depends on your total profit after expenses.
Common allowable expenses include: van costs (fuel, insurance, servicing), tools and equipment, workwear and PPE, public liability insurance, accountant fees, phone and internet (business portion), materials, training and certifications, and marketing costs. Keep receipts for everything.
For most tradespeople earning under £50,000 profit, sole trader is simpler and cheaper. Above £50,000, a limited company can be more tax-efficient through salary and dividends. However, limited companies have more admin and costs. Speak to an accountant about your specific situation.
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