Guide

How to price a job as a tradesperson (UK)

Updated 2 October 2026 · 5 minute read

Underpricing is the most common way a busy trade business ends up short of money. Here's a straightforward way to work out what to charge.

Short answer: Price a job as: materials, plus your time at your real hourly rate, plus any job-specific costs like skips or scaffolding, plus VAT if you're registered. Work out your hourly rate by adding what you want to earn before tax to your yearly business costs, then dividing by the hours you can actually bill, not the hours you work.

1. Work out your real hourly rate

Your rate has to cover more than the hours on site. Start with three numbers:

What you want to earn in a year, before tax.
Your yearly business costs: van, fuel, insurance, tools, phone, accreditations, advertising and lead fees, accountant.
The hours you can actually bill. Not every working hour is billable: quoting, travelling, buying materials, paperwork, holidays and bad-weather days all eat into the year.

Then: (earnings + costs) ÷ billable hours = your hourly rate.

Example only, not a recommended rate: £40,000 earnings before tax, plus £12,000 of costs, over 1,400 billable hours (35 hours a week for 40 weeks) gives (£40,000 + £12,000) ÷ 1,400 = £37.14 an hour.

Remember that the earnings figure is before tax. On £40,000 of profit in 2026/27 in England, a sole trader would pay about £5,486 in income tax (20% on income above the £12,570 personal allowance) and about £1,646 in Class 4 National Insurance (6% on profits between £12,570 and £50,270). Put money aside for it as you go.

2. Price the materials properly

List everything, including fixings, consumables, sealants and fittings, not just the big items.
Add the job-specific costs: skip hire or waste disposal, scaffolding, equipment hire, parking.
Say in your quote how long the price stands, so you're covered if material prices rise.

3. Day rate or price per job?

A day rate is simple and protects you on jobs that are hard to predict, but customers can find it harder to compare. A fixed price per job is easier for customers to say yes to and rewards you for working efficiently, but you carry the risk if the job takes longer. Many trades use a fixed price for jobs they know well and a day rate for the unpredictable ones.

4. Add VAT if you're registered

You must register for VAT if your VAT-taxable turnover goes over £90,000 in a 12-month period. If you're registered, any price you show a consumer must include VAT, so quote the full price, not “plus VAT”.

5. Check it against the market, then hold your nerve

Know roughly what others near you charge, but don't price to be the cheapest. Customers choosing a trade weigh up reviews, how quickly you reply and whether you look like a proper business as much as price. If you buy leads, add their cost into your yearly costs. Our lead cost calculator shows what each job really costs you to win.

6. Put it in writing

Once you've got a price, put it in a clear written quote. Our guide on how to write a quote for a job has a checklist, and covers the 14-day cancellation rules when you agree a job in someone's home.

See what yours would look like

We'll build a website for your business from your Google listing, free. You only pay £199 if you want to keep it.

Get my free preview See example sites

Sources

Prices change. Figures were checked on the date above; check the provider's site for today's price.

More for your trade

Websites for plumbers Websites for gas engineers Websites for electricians Websites for roofers Websites for builders Websites for joiners and carpenters Websites for landscapers Websites for painters and decorators