Guide
How to start a building business in the UK
Updated 2 October 2026 · 5 minute read
Anyone can call themselves a builder, which is exactly why customers look so hard for proof you're a proper business. Here's what the law asks of a new building firm and what customers check.
Do you need a licence?
No. But the work has to meet building regulations and be signed off by building control, and customers will check your trading history, reviews and memberships before they trust you with a big job.
CIS: register before you take contractor work
If you'll work as a subcontractor for other builders, register with HMRC for the Construction Industry Scheme. Registration isn't compulsory, but if you're not registered, contractors deduct 30% from your payments instead of 20%. Established firms can apply for gross payment status and be paid without deductions. Our CIS guide explains how it works.
CDM 2015 on domestic jobs
On a domestic job, the client's duties under the Construction (Design and Management) Regulations 2015 pass to you. If you're the only contractor, you take them on; if there's more than one, the principal contractor does. In practice that means planning the work, managing health and safety on site and making sure there are welfare facilities.
Waste: upper-tier registration
If you carry construction or demolition waste, including waste from your own jobs, you need to register as an upper-tier waste carrier. In England it costs £191.02 to register and £130.25 to renew every three years.
Party walls
Work on a shared wall, or excavating close to a neighbour's foundations, can mean serving notice on the neighbours under the Party Wall etc. Act 1996 before work starts. Check the rules on GOV.UK and build the notice period into your schedule.
Cards and memberships
- CSCS cards aren't a legal requirement, but many main contractors won't let you on site without one.
- Federation of Master Builders membership needs at least 12 months' trading, vetting and an independent site inspection, so it's one to work towards rather than a day-one step.
Insurance
- Public liability insurance isn't a legal requirement, but customers and contractors will ask for it.
- Employers' liability insurance is a legal requirement once you employ anyone, with at least £5 million of cover.
The admin every sole trader needs
Registering with HMRC, Self Assessment, VAT (including the construction reverse charge) and Making Tax Digital are covered in our going self-employed checklist.
Getting your first customers
- Photograph every job, before and after. Finished projects are what sell building work.
- Set up a Google Business Profile and ask every customer for a review.
- Give extensions, lofts and renovations their own pages on your website. See SEO for builders.
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.
Sources
- GOV.UK: what you must do as a CIS subcontractor
- HSE: CDM 2015, domestic clients
- GOV.UK: register as a waste carrier, broker or dealer
- GOV.UK: party walls and building work
- CSCS: FAQs
- FMB: membership criteria
- HSE: employers' liability insurance
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