Using Sub Contractors

By: Elaine Everest - Updated: 4 Oct 2025 | *Discuss

 

When starting an electrical repair business, you’ll need to decide whether to hire subcontractors or electrical contractors. Both options give you flexibility and access to skilled workers without committing to permanent staff.

Hiring Subcontractors

Subcontractors are skilled workers hired only when needed — for a project, short-term contract, or part-time support. This allows you to scale quickly without long-term overheads.

Tax and National Insurance

Subcontractors handle their own tax and National Insurance. They may be self-employed or run limited companies. They must invoice you before payment, and in some industries may need to be registered under the Construction Industry Scheme (CIS).

Checking Qualifications

Subcontractors and contractors should hold the latest City & Guilds 2382 qualification (18th Edition, BS 7671 Wiring Regulations with Amendment 2). Always request proof of certification and keep a copy for your records.

Hiring Electrical Contractors

For larger projects, it may be simpler to hire an electrical contracting company. Contractors usually provide qualified staff, insurance, and compliance management, reducing your administrative burden.

Tools and Materials

Most subcontractors supply their own tools and transport. Some also provide materials and bill you, but many businesses prefer to buy materials themselves to control costs and quality.

VAT and Invoicing

Subcontractors may be VAT registered. If they charge VAT, their invoice must include a valid VAT number. If your business is VAT registered, you can reclaim VAT on their invoices.

Training and Insurance

Subcontractors are responsible for their own training and must carry public liability insurance. They are not entitled to holiday pay, sick pay, or redundancy, which keeps your employment costs lower.

Assistants and Apprentices

Subcontractors may bring assistants or apprentices. These are employed and paid by them, not your business, and their costs are included in the subcontractor’s invoice.

Best Practices Checklist

Staying Current in 2025

The electrical industry is changing fast. When hiring subcontractors or contractors, check:

• They are registered with a recognised competent person scheme (NICEIC, NAPIT, ELECSA).
• They work under the latest BS 7671 Wiring Regulations (18th Edition, Amendment 2).
• They hold adequate public liability insurance (typically £5–10 million).
• They comply with IR35 rules where relevant.
• They use modern job management tools and digital certification systems.
• They have experience with EV chargers, solar, and smart energy technology.

For businesses operating from home or small premises, you may also want to explore whether a business electricity meter from Purely Energy could help manage costs more effectively.

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