How to start a plumbing business

The idea of starting a plumbing business can be appealing to many after years of working for someone else. Over time, confidence grows, skills become second nature and the thought of working independently starts to feel realistic. Plumbing is work that remains necessary in all kinds of circumstances, and demand is unlikely to disappear overnight.

However, moving into self-employment brings a shift in responsibility and additional qualification requirements to consider. Read on to find out how to start a plumbing company and what’s required.

Why start a plumbing business?

There are several reasons why plumbers choose to set up on their own:

• Starting your own business offers greater flexibility and full control over your hours, allowing you to plan your work around family commitments and requirements.
• In some cases, setting up on your own can also help to increase your earning potential, and you can take on more hours and work for a higher salary than agency work. 
• Becoming self-employed is ideal if you prefer having direct control and visibility over customer relationships. 
• Running your own business can also allow you to specialise in an area you have the most experience or knowledge in, such as domestic repairs or commercial plumbing services.

Plumbing skills are transferable and consistently in demand, which can make self-employment feel like a practical next step once you’ve built sufficient experience.

What are the different types of plumbing businesses you can set up?

The type of work you choose to take on influences how the business develops. Some plumbers focus on household repairs and installations, working directly with homeowners. Others work closely with landlords or managing agents and handle ongoing maintenance across several properties. Additionally, some plumbers focus solely on call-out work. Being clear about your services helps to guide decisions on pricing, equipment and how your business is advertised. Here are some of the different types of plumbing businesses  to consider:

• Domestic plumbing businesses focusing on repairs, installations and maintenance in private homes.
• Commercial plumbing services, working on offices, shops or larger developments.
• Emergency and call-out plumbers, offering rapid-response services.
• Landlord and property-maintenance services, carrying out regular checks and repairs across multiple properties.
• Specialist plumbing businesses, such as those offering bathroom installations or renewable heating systems.

What training and qualifications do you need when starting a plumbing business?

It goes without saying that customers expect jobs to be carried out safely and competently, and formal qualifications help to demonstrate that standard. Your required qualifications depend on whether you’re considering commercial or domestic plumbing work. Many plumbers hold NVQs or similar certificates gained through apprenticeships or vocational routes. 

A City & Guilds Level 2 qualification is usually sufficient for carrying out basic domestic plumbing work. Those interested in more advanced roles may choose to work towards an NVQ Level 2. If you plan to work on construction sites, you’ll also need a CSCS card, typically alongside an NVQ Level 2 qualification.

Certain work also requires additional registration, such as Gas Safe registration for gas installations. Insurance also plays an important role, and public liability insurance protects both the trader and the customer if something goes wrong on a job. Find out more about how to add to your skills as a plumber. 

Step-by-step guide to setting up a plumbing business

1. Obtain the necessary licenses and permits

First, it’s important to research and comply with the licensing and permit requirements for plumbing businesses in your area. These may include contractors' licences, trade-specific certifications and permits for operating a business. If you plan to carry out gas work, you must also apply for Gas Safe registration.

2. Choose your business structure

Next, choose your business structure and decide whether you’ll be a sole trader or a limited company. 

Most plumbing firms start small, and many people begin as sole traders, working under their own names and paying taxes through self-assessment. In this case, you’re personally liable for the business.It’s often easy and quick to register with HMRC, with minimal paperwork. 

If you’re setting up a limited company, the business is a separate legal entity from you, and you’ll need to adhere to continuous reporting obligations. You’ll also need to pay yourself a salary and consider dividend payments. Some business owners decide to form a limited company later down the line, usually when the business grows or when they plan to hire employees.

See our full guide on how to choose the right business structure for more tips and advice.

3. Register the business

You’ll need to register for self-assessment tax with HMRC if you’re a sole trader, or set up with Companies House (and register for corporation tax with HMRC) if you’re forming a limited company. 

4. Set up your finances

Next, set up your finances, including a business bank account and a simple system for invoices and records. You’ll also need to arrange insurance, such as public liability cover. Finding an accountant can be a worthwhile investment to ensure your business is set up correctly and meets all its legal and financial obligations from the start. 

5. Ensure you have the right tools and equipment

Next, buy the tools and equipment needed for the jobs you’ll take on. Choose high-quality tools that will last and that are the most suitable for your niche, or consider hiring tools to cut overhead costs and storage requirements, especially when you’re first starting out.

6. Decide on your pricing and services

Put together a realistic pricing strategy and services offering, including terms. Clear pricing is crucial; before work starts, customers should be aware of what they’re paying for and the expectations of the work. It can help to look at what similar businesses in your area are charging and consider your own experience and knowledge.

7. Start promoting your services

In the plumbing industry, a lot of companies rely on word-of-mouth recommendations and repeat business when it comes to advertising. Customer reviews are also extremely important in influencing decisions, particularly for domestic work, where trust plays a large part in who gets hired. A positive reputation is built on consistency and clear communication, and customers want to know that concerns will be taken seriously and handled fairly.

Which? Trusted Traders endorsement

For some plumbers, a Which? Trusted Traders endorsement forms a huge part of building confidence with customers. The assessment process looks at trading history, customer feedback and how the business operates. For customers, the endorsement acts as reassurance that checks have been carried out independently. Endorsed traders also have access to alternative dispute resolution, which provides a formal route for resolving complaints that can’t be settled directly. Build your business’s reputation and talk to us about becoming a Trusted Trader. 

Frequently asked questions

How much can a plumbing business earn?
Income varies depending on experience, location and the type of work carried out. Many plumbers see earnings improve over time as their reputation grows and repeat work becomes more common.

How can I promote my plumbing business?
Clear communication, reliable service and customer feedback all help to build a local reputation. Being endorsed by Which? Trusted Traders can also give customers increased confidence when choosing a business.

When you’re ready to take the next step, see our guide on digital marketing for plumbers.

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