Tax Guide for Electricians: Expenses, CIS, and Self Assessment

Self-Employed Electrician? Here Is What You Need to Know

If you are a self-employed electrician in the UK, you are running a business — and that means dealing with tax. The good news is that electricians can claim a wide range of expenses that reduce your tax bill. The not-so-good news is that if you are doing subcontract work, the Construction Industry Scheme (CIS) adds an extra layer of complexity.

This guide covers what you need to know for the 2025/26 tax year: allowable expenses, how CIS works, and capital allowances on your tools and van.

Allowable Expenses for Electricians

An allowable expense is something you spend wholly and exclusively for your business. Claiming it reduces your taxable profit, meaning you pay less Income Tax and National Insurance.

Tools and Equipment

You can claim the cost of hand tools (wire strippers, screwdrivers, pliers, crimping tools, cable cutters), power tools (drills, SDS hammers, multitools), testing equipment (multifunction testers, voltage indicators, socket testers), and accessories like tool bags and carrying cases.

Small tools that get replaced regularly can be claimed as a straightforward expense. More expensive items may go through capital allowances, though the Annual Investment Allowance of £1 million means you can usually claim the full cost in the year of purchase.

PPE and Workwear

Personal Protective Equipment is fully claimable: safety boots, hi-vis vests, hard hats, knee pads, safety glasses, and gloves. Standard clothing is not claimable, even if you only wear it for work. Branded uniforms with your business logo are fine.

Van and Vehicle Costs

You have two options. Actual costs — claim fuel, insurance, road tax, MOT, servicing, repairs, tyres, and breakdown cover, adjusted for business-use percentage. Or the simplified mileage rate — 45p per mile for the first 10,000 miles, 25p per mile after that. The mileage rate covers everything; you cannot claim separately for fuel or repairs alongside it.

Which is better? If your van is older and cheap to run, mileage often wins. If you have a newer van with higher finance payments, actual costs might come out ahead. Once you choose a method for a vehicle, you stick with it.

Mileage Between Jobs

Travel from home to a regular place of work is not claimable. But travel between jobs during the day, or to temporary workplaces, is. If you visit different client sites each day, those are temporary workplaces and your travel to them is a business expense.

NICEIC Registration and Part P

Your NICEIC or NAPIT registration fees are fully claimable. So are Part P Building Regulations scheme registration, ECS card costs, and JIB registration.

Training and Qualifications

Training to maintain or update existing skills is claimable: 18th Edition wiring regulations courses, inspection and testing courses, EV charger installation training, solar PV courses, and refresher training. Training to acquire a completely new skill in a different field is generally not claimable.

Materials, Insurance, and Other Costs

Materials you supply for jobs (cable, sockets, switches, consumer units) are business expenses. Trade insurance (public liability, professional indemnity, tool insurance) is claimable. Phone costs, accountancy fees, bookkeeping software, advertising, and trade magazine subscriptions all qualify too.

CIS: The Construction Industry Scheme

Electrical work falls squarely within CIS. If you do subcontract work for a contractor in the construction industry, CIS applies.

How CIS Works

The contractor deducts tax from your payments before paying you. The standard deduction is 20% if you are registered with HMRC for CIS, or 30% if you are not. These deductions are advance payments of your tax — when you file your Self Assessment, they are credited against your bill. If more was deducted than you owe, you get a refund.

Register for CIS

If you have not already, register. It is free and brings your deduction rate from 30% to 20%, making a real difference to cash flow. With a good compliance record, you can apply for gross payment status — meaning contractors pay you without any deductions.

Keep all CIS payment and deduction statements. You will need them when filing your return. Accounted's AI bookkeeper, Penny, can help you track CIS deductions alongside your regular income and expenses.

Capital Allowances

The Annual Investment Allowance lets you deduct the full cost of qualifying equipment in the year you buy it, up to £1 million. This covers vans, tools, testing equipment, computers, tablets, ladders, and scaffolding. Cars have separate, more complex rules.

Keeping Records

HMRC requires you to keep records for at least five years after the 31 January filing deadline. This means invoices, receipts, bank statements, CIS statements, mileage logs, and records of cash payments. With Making Tax Digital rolling out, digital record-keeping is becoming mandatory for more sole traders.

Get Your Tax Sorted Without the Headache

Running an electrical business is demanding enough without worrying about tax paperwork. If you want an easy way to track your income, log your expenses, and have your Self Assessment figures ready when you need them, try Accounted. Start your free trial today and let Penny handle the bookkeeping while you get on with the work that pays.

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