How to Start a Electricians Business

[MSHElectrician]

Hello, I have been out of work for over ten years due to a bad accident which has left me with various differculties,I,m wanting to start up my own business to work two days a week enough to get me off benefits,but everything seems so overwhelming with what you need to start a business in the electricians trade,like do you need part p etc etc.Does anyone know if there is a step by step guide in starting a small electricians business?

 

[MDJ]

Hi-Welcome aboard, what qualifications do you hold? and do you have any contacts within the construction industry?

 

[MSHElectrician]

I,m 17th Edition JIB approved Electrician with C&G 2391 which I think I need to learn again.

 

[MDJ]

well that's good, do you have contacts? or are you just intending to do a bit of domestic for private customers when you get the chance?

 

[MSHElectrician]

Hello thanks for your reply I have no contacts just thought of asking mainly businesses,golf clubs shops looking for small jobs

 

[Richard Burns]

The website www.gov.uk has some useful guides about starting a business in general, not specific to electricians but quite a useful resource about setting up and there are other areas about tax, etc.

With those qualifications you would be able to register with a self certification scheme. Just look up the scheme details for which one you want to go with and apply. If you are not doing domestic then you do not need to be PArt P registered, but some commercials like you to be registered anyway.

To start you need the tools and knowledge to be able to undertake the work you offer.

You need a business, a tax reference from HMRC, tools and equipment, telephone number, adverts, stock, a customer base, capital to tide you over while the business gets going, paperwork to complete for jobs, invoices, certificates, etc., a few wholesalers accounts (or one you trust), a lot of time to do the paperwork.

 

[Octopus]

Your best move now would be to do a business plan and identify all the fixed overheads you'll have plus the variable overheads to get a grip on the costs you will have to cover before you start to make a profit.

For most SE types you'll be looking at £5K - £6K per year.

 

[amlu]

you will need some tools and transport. and couple of first customers (thats the difficult bit). if you manage to get a nice bigger job (rewire, extension, consumer unit change etc) then use it to get into a part pee business to be on right side of the law
dont expect to make big money in first couple of years...
working for builders on domestic jobs is good for a start (just be careful to be paid on time )

 

[Kate]

Yea builders are buggers for paying on time. Im still owed for a job in may!!!!

It takes a long time to build up a customer base/reputation.

One thing you could try is set up with HMRC for self assessment as it can take a while to get your UTR number, go around all local electrical companies and ask to be sub-contractor 2days a week. Its a starting point while you build up your own work.

 

[MDJ]

Hello thanks for your reply I have no contacts just thought of asking mainly businesses,golf clubs shops looking for small jobs

Well you will struggle, but good luck

 

[ExArmy]

it's really simple
1-get some tools
2-get some transport
3-register on HMRC as self employed, start paying class 2 NI contributions (£2.70 a week)
3-join a scam
4-advertise
5-do jobs
6-keep a record of everything you spend on the business
7-keep a record of all the money you get paid
8-don't worry about tax or class 4 national insurance, (as long as you keep records as above) you've got ages to work that out

 

[Octopus]

it's really simple
1-get some tools
2-get some transport
3-register on HMRC as self employed, start paying class 2 NI contributions (£2.70 a week)
3-join a scam
4-advertise
5-do jobs
6-keep a record of everything you spend on the business
7-keep a record of all the money you get paid
8-don't worry about tax or class 4 national insurance, (as long as you keep records as above) you've got ages to work that out

I slightly disagree about this - as you do need to know when you need to start saving for them

 

[Des 56]

I would expect that you are able to earn a set amount of money working less than 16 hours a week without it effecting your benefit entitlement too much

With this in mind and a possible little, if any, spare money to invest,it may be worthwhile claiming whilst trying to generate small local jobs for private customers be they domestic/commercial or industrial

You need registration only for the largest of domestic jobs and nothing whatsoever for industrial/commercial jobs

You get your tools ready in the hallway,print some flyers with the work you feel comfortable with,get the jobs,get paid,declare all the jobs invoiced or electronically paid to the social
(there obviously won't be any jobs paid by cash so lets forget them)lol

Keep records of everything you spend that has any bearing whatsoever on your ability to trade,whether it be materials,tools,equipment,clothes.insurance(public liability £80 is a must when you can afford it)anything and everything to be listed,dated,even reciepts for the Biro you buy to fill in the lottery ticket,charge yourself for renting your own room for an office,use your phone for business calls and to arrange the meals with potential clients that cost you a grand fortune,you get the drift

The present trading year has not taken placemtherefore I believe the revenue won't be interested until you complete your 1st trading year

At the end of a full trading year,make up the expense and/or profit loss account and contact the inland revenue for a unique tax reference,fill in your return and your up and running
Obviously keep the social informed and declare any earnings to the social,that is until you have enough to get shot of them

 

[MSHElectrician]

cheers for the advice it is much appreciated I think I understand it I can go a work now as Electrician I don,t need anymore qualifications or have to be part p registered that's what was worrying me as all new things have come in since I have been out of work for so long I didn,t know the business legalities of things but it sounds simple now

 

[skirby]

If you're interested in building up your business when you get started there's some interesting stuff here- http://www.electriciansforums.co.uk...ar-electricians-who-want-more.html#post628830
Good luck!

 

[ExArmy]

I slightly disagree about this - as you do need to know when you need to start saving for them

at the end of the tax year in april you anyone can work out what they need to pay for tax and C4 NI, theres then another 10 months untill it needs paid. if a tradesman find enough money to pay the first years tax in 10 months, then theres something wrong.

 

[amlu]

if you make less than 8 grand a year then no tax to pay

 

[oldtimer]

I think it is 10k a year before tax plus he needs to play to his strengths so what field did he work in ie Industrial / Commercial , Domestic , Intruder alarms etc I started my business 3 years ago at 51 and for me it was fault finding and small repairs.

 

[Octopus]

Actually is £9440 this year before tax BUT the class 4 NI kicks in at a lower rate.

 

[oldtimer]

Yep Murdoch your correct as I think it is next year they are putting up to 10k

 

[Octopus]

Threads like this goes to show how little people understand and all this information is a simple google search!