How to Start an Electrical Business in the UK (2026)
The thing that catches most new electricians out: you don't *legally* need to be "registered" to work as an electrician — but for most domestic work in England and Wales you'll either join a competent person scheme to self-certify, or notify Building Control on every notifiable job. This guide takes you through the three things that actually have to line up — competence, compliance, and the business itself — in order.
Step 1 — Qualifications and competence
To join a competent person scheme (the practical route to a real electrical business), you need to meet the Electrotechnical Assessment Specification (EAS). In practice that means:
- Level 2 & Level 3 Diplomas (e.g. C&G 2365), or the installation electrician apprenticeship route
- NVQ Level 3 (e.g. C&G 2357) including the AM2 assessment
- 18th Edition wiring regulations — C&G 2382 (BS 7671)
- Inspection & Testing — C&G 2391 (or equivalent)
- 2 years' experience
⚠️ Since September 2021, short courses and "certificates of competence" are no longer accepted for scheme entry. Note also that EAS requirements are being strengthened, with additional qualifications for inspection/testing and low-carbon work phasing in from October 2026 — worth factoring into your training plan.
Build my free checklist →You'll also want an ECS Gold Card for access to most sites.
Step 2 — Decide on Part P: join a scheme or use Building Control
Part P of the Building Regulations covers electrical safety in dwellings in England and Wales (Scotland and NI have their own systems). Certain "notifiable" work (new circuits, consumer unit changes, work in bathrooms) must either be:
1. Self-certified by a member of a government-authorised competent person scheme, or 2. Notified to Building Control before work starts (slower and costs the customer £200–£500 per job).
For a working business, scheme membership wins — it's a genuine commercial advantage because customers actively search for "registered" electricians.
The main schemes:
- NICEIC — the largest and most recognised (~38,000 registered businesses). Domestic Installer from roughly £670 + VAT/year; Approved Contractor more.
- NAPIT — the main alternative, generally a bit cheaper (often ~£400–£600/year for Domestic Installer).
- *Note: ELECSA was merged into NICEIC in 2021 and no longer takes new registrations. Stroma is another option.*
Both require the same core qualifications, adequate public liability insurance, and an annual assessment of your work. You must notify each notifiable job through the scheme within 30 days.
- Competent person scheme info (GOV.UK): https://www.gov.uk/building-regulations-approval
- NICEIC: https://www.niceic.com — NAPIT: https://www.napit.org.uk
Step 3 — Register your business with HMRC
- Sole trader — register for Self Assessment, get a UTR. Most electricians start here.
- Limited company — register with Companies House (~£50 online) + Corporation Tax. Often worth switching once turnover grows.
Register within 3 months of starting to trade.
- Self-employed: https://www.gov.uk/set-up-self-employed
- Limited company: https://www.gov.uk/limited-company-formation
Step 4 — Register for CIS
If you work for builders or main contractors you're a CIS subcontractor — registering drops deductions from 30% to 20%. If you pay subcontractors yourself, register as a contractor too.
- Subcontractor: https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor
- Contractor: https://www.gov.uk/what-you-must-do-as-a-cis-contractor
Step 5 — Insurance
- Public liability — £2m minimum, £5m recommended (and required by many schemes/commercial clients).
- Professional indemnity — for design/advisory work.
- Employers' liability — legally required if you employ anyone.
- Tools & van cover.
Step 6 — Practical setup and growth
- Business bank account.
- CSCS/ECS card for site access.
- Waste carrier registration if you transport waste: https://www.gov.uk/waste-carrier-or-broker-registration
- VAT — register once turnover exceeds £90,000: https://www.gov.uk/vat-registration
- High-value specialisms worth stacking: EV charging (C&G 2921), solar PV (2922), battery storage (2923), and MCS certification for renewables — these command notably higher day rates.
Electrical business requirements at a glance
| Requirement | Needed? |
|---|---|
| Legal "electrician licence" | ❌ Not a thing — competence + Part P route instead |
| Qualifications (EAS: 2365/2357, AM2, 2382, 2391) | ✅ Required to join a scheme |
| ECS Gold Card | ⚪ Needed for site access |
| Competent person scheme (NICEIC/NAPIT) | ⚠️ Not legal-mandatory, but essential in practice for domestic work |
| HMRC registration | ✅ Sole trader or limited company |
| CIS registration | ✅ If subcontracting or hiring |
| Public liability (£2m+) | ⚠️ Effectively essential / scheme-required |
| Employers' liability | ✅ Legal if you employ anyone |
| VAT registration | ✅ Once turnover > £90,000 |
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Build my free checklist →Frequently asked questions
Do I legally need to be registered to work as an electrician? No — but for notifiable domestic work in England and Wales you must either be in a competent person scheme (to self-certify) or notify Building Control each time. Almost all professional electricians join a scheme because it's faster and cheaper for customers.
Which is better, NICEIC or NAPIT? Both carry equal legal standing and require the same qualifications. NICEIC is the larger, most recognised brand; NAPIT is usually cheaper. The choice comes down to cost, assessor availability in your area, and preference.
Does Part P apply in Scotland? No. Part P is England and Wales only. Scotland uses Building Standards and Northern Ireland has its own regulations.
When must I register for VAT? Once turnover passes £90,000 in any 12-month period.
Last reviewed: 2026. Confirm current scheme fees and EAS qualification requirements on the official scheme/GOV.UK pages before acting, as these are changing through 2026.