Labour Rate Calculator UK — What to Charge as a Tradesperson

Not sure what to charge? This guide walks you through calculating your minimum day rate and hourly rate as a UK tradesperson — so you never undercharge again.

Why Getting Your Rate Right Matters

Most tradespeople who struggle financially are undercharging — not overcharging. Setting your rate too low means you work hard but cannot grow your business, save for quiet periods or invest in better tools and training.

How to Calculate Your Day Rate

Use this simple formula:

1. Decide on your target annual take-home pay (e.g. £40,000)
2. Add your annual business costs — insurance, tools, van, phone, software (e.g. £10,000)
3. Add National Insurance and tax (approximately 25–30% of profits for a sole trader)
4. Work out how many billable days you will work — allow for holidays, sick days and unpaid admin (typically 180–220 days)
5. Divide your total required income by billable days

Average UK Trade Day Rates (2024)

• Plumber — £180–£350/day
• Electrician — £180–£350/day
• Builder / Bricklayer — £150–£300/day
• Carpenter / Joiner — £150–£280/day
• Plasterer — £140–£260/day
• Painter and Decorator — £130–£250/day
• Gas Engineer — £200–£400/day
• Tiler — £130–£250/day

Note: London and South East rates are typically 20–40% higher than the national average.

Use the Built-in Calculator

GetJobQuotes has a built-in Day Rate calculator. Enter your day rate and number of days to get the total including VAT — available on every page of the app.

FAQs

Should I charge VAT on top of my day rate?

Only if you are VAT registered. If your turnover exceeds £90,000 (2024/25 threshold), you must register for VAT. See our VAT calculator guide.

How do I increase my rates without losing clients?

Increase rates gradually (5–10% per year), give existing clients notice, and focus on the value you provide. Clients who only care about the lowest price are rarely the best clients to keep.

Should I charge the same rate for all jobs?

Not necessarily. Emergency call-outs, specialist work and difficult access jobs typically justify higher rates. You can charge a premium for weekend or evening work.