How to Set Your Day Rate as an Electrician in the UK

Most electricians going self-employed set their day rate by looking at what the lad down the road charges, picking something similar, and hoping for the best. That's one approach. The problem is you might be profitable, you might not be — you genuinely won't know until you're staring at a tax bill in January wondering where it all went.

Setting a rate properly takes about 20 minutes with a spreadsheet. Here's how to do it.

Start with what you need to take home

Work backwards from your personal costs, not forwards from what you think sounds reasonable. What do you actually need to earn after tax to cover rent or mortgage, food, bills, the car, and have something left over?

Let's say that number is £2,500 a month net. Over 12 months, that's £30,000 take-home.

To take home £30,000, you need gross profits of roughly £38,000–£40,000 depending on your allowable expenses. That's your target profit, not your turnover — turnover needs to be higher still once you account for costs.

Work out your annual costs

These are the costs you have regardless of whether you're working or not:

Tools and equipment — amortise major tools over their lifespan, plus ongoing consumables Van costs — insurance, road tax, servicing, fuel, tyres Insurance — public liability, tools, van NICEIC or NAPIT registration — annual fees, assessment costs Phone and data Accountant fees Work clothing and PPE Training and CPD For a reasonably kitted-out sole trader electrician, you're typically looking at £8,000–£15,000 a year in costs. Let's use £10,000 as a working figure.

How many billable days do you actually have? A year has 260 working days. You are not billing all of them. Take off:

28 days holiday 8 bank holidays 5-10 days sick 10-15 days of non-billable time: quoting, admin, travelling between jobs 5 days of gaps between jobs That leaves around 200-210 billable days per year. Use 200 to be conservative.

Putting it together

You need:

£30,000 net take-home → requires roughly £39,000 gross profit Plus £10,000 in costs So your minimum turnover target is £49,000 Divide by 200 billable days: £245 per day minimum. That's the floor — not your target.

What electricians are actually charging in 2025

London and South East: £300–£450/day Midlands and North: £220–£350/day Scotland and Wales: £200–£320/day Specialist work (EV charging, solar, industrial): 20-40% premium above standard rates If your calculated minimum is £245/day and market rates in your area are £280-320, you're in a reasonable position.

Should you charge a day rate or price jobs?

Both. Day rates work well for contractor subbies, maintenance and reactive work, and commercial clients who want visibility of your time. Fixed-price quotes work better for domestic customers who want certainty, and for clearly defined jobs.

When you quote fixed prices, you're estimating days, building in a buffer, and working from there. A 15-20% buffer on labour is not greedy — it's sensible. Most customers won't notice.

When to put your rates up Review your rates at least once a year. Consider an increase if:

You're fully booked more than 3 weeks out consistently Your costs have gone up You haven't raised rates in over a year Comparable electricians in your area are charging more Most good customers won't walk if you put your rate up by £20-30/day. Price yourself like you mean it.

Don't forget to quote for materials separately Materials should never come out of your day rate. They're a pass-through cost — you buy them, charge them at cost (or cost plus a small handling margin), and list them separately on every invoice.

Separate line items on every invoice: labour, then materials. Your day rate covers your time and expertise. Materials are extra.

Tracking both properly is where Dayrates is useful — day rates, materials, and invoiced totals all in one place, so you can see at a glance what each job actually made you.

The number you're looking for Do the calculation above with your actual numbers. That gives you your floor. Add 15-20% on top for profit margin and unexpected costs. That's your rate.

Then check it against the market. Either way, you'll know what your number actually means and why — which is a better position than guessing and wondering why January is always tight.