How many billable days should I plan for?

Most tradespeople work around 220 days per year (52 weeks minus weekends = 260, less 25 holiday days, 5 sick days, and 10 days for admin/training). Some manage 230+ but this risks burnout.

What is a typical day rate for a UK tradesperson in 2026?

Day rates vary significantly by trade and region. Electricians and plumbers typically charge £200-£350/day, while specialist trades like gas engineers or HVAC technicians can charge £300-£500/day. London rates are 20-40% higher.

Should I operate as sole trader or limited company?

For earnings under £50,000, sole trader is usually simpler and cheaper. Above that, a limited company can offer tax advantages through salary/dividend splits, but involves more admin and accountancy costs.

What National Insurance do tradespeople pay?

Sole traders pay Class 2 NI (flat weekly rate) and Class 4 NI (6% on profits between £12,570-£50,270, then 2% above). Ltd company directors pay different rates on salary drawn.

How does pension affect my tax calculation?

Pension contributions are tax-deductible, reducing your taxable income. The government effectively tops up your pension by your marginal tax rate - 20% for basic rate taxpayers, 40% for higher rate.

TradeCalculator

Day Rate Calculator

Calculate your net income from your day rate after tax, NI, and business costs

Day Rate

Working Days per Year

Employment Status

How We Calculate This

This calculator takes your day rate and multiplies by billable working days (total days minus holidays and sick days). It then applies current HMRC income tax bands (20%/40%/45%), National Insurance contributions (Class 2 flat rate plus Class 4 percentage), deducts pension contributions and business costs (insurance, accountant) to give your true net income and effective hourly rate.

Frequently Asked Questions

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.