Month: January 2025

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

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Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

If you’re a sole trader, self-employed or run a small business in the trades industry, you may have considered hiring an apprentice to help grow your team. Apprenticeships are a fantastic way to develop skilled workers who are trained specifically for your trade, and they can be an excellent investment in the future of your business.

We’ll walk you through all the main details you need to know for hiring an apprentice—from the benefits and costs to training and enrolling an apprentice. By the end, you’ll have a clear understanding of how apprenticeships work and how they can benefit your trade business.

Why hire an apprentice?

Hiring an apprentice is more than just filling a vacancy; it’s an investment in your business, the individual being trained and the trade industry. Here are some of the key reasons why you should consider it:

Invest in the future of your business

An apprentice can be trained to work to your specific standards, giving you a skilled employee who understands your business inside and out.

Address skill shortages

Many trades are experiencing a shortage of skilled workers. By hiring an apprentice, you’re helping to bridge that gap and future-proof your industry.

Fresh ideas and enthusiasm

Apprentices often bring a new perspective to your team and are eager to learn. Their enthusiasm can boost morale and help your business grow.

Cost-effective way to grow your team

Apprentices are typically less expensive than experienced workers, and with government funding available, the financial investment is manageable.

Support for your workload

An extra pair of hands can ease the pressure on your business, especially during busy periods.

Pros and cons of hiring an apprentice

Pros:

Cost savings: Apprentices earn a lower wage while training, and you may be eligible for government funding to cover their training costs.
Tailored skills: You can train apprentices to meet the exact needs of your business, ensuring they’re a perfect fit.
Loyalty: Apprentices who feel valued often stay with the business after their training, reducing the cost of hiring and retraining.
Reputation: Supporting apprenticeships can enhance your business’s image within the community and industry.

Cons:

Time investment: Apprentices require supervision and training, which can take time away from your daily work.
Risk of leaving: There’s always the chance that an apprentice may leave once qualified, although this can be mitigated with clear progression opportunities.
Initial costs: Although funding is available, you’ll still need to budget for wages and equipment.
Productivity challenges: Apprentices are learning, so they may not be as productive as an experienced worker initially.

By weighing these pros and cons, you can decide if an apprentice is the right fit for your business.

Cost of hiring an apprentice

Understanding the Costs

Hiring an apprentice involves some upfront costs, but these are generally lower than hiring an experienced worker. Here’s a breakdown:

Wages: The minimum apprentice wage (as of 2025) is £5.28 per hour for those under 19 or in their first year of apprenticeship. Beyond this, they must be paid the national minimum wage for their age group.

Training costs: If you’re a small business, most of the training cost is funded by the government. For businesses with fewer than 50 employees hiring an apprentice aged 16-18, the government covers 100% of training fees.

Additional expenses: You may need to budget for tools, equipment, or uniforms.

Funding and financial benefits

Government funding: The UK government offers funding to cover training and assessment costs. Larger employers pay the Apprenticeship Levy, but small businesses are often eligible for funding.

Incentives: Small businesses may qualify for additional payments, such as £1,000 for hiring apprentices aged 16-18 or those with an education, health, and care plan.

Tax relief: Employers are exempt from paying National Insurance contributions for apprentices under 25.

The financial support available makes apprenticeships an affordable way to grow your business.

How to enrol an apprentice

Enrolling an apprentice may sound complicated, but with the right steps, it’s straightforward. These tips should get you started:

Assess your needs: Think about the skills your business needs and the role the apprentice will fill. Be clear about what you want them to learn and contribute.
Choose an apprenticeship standard: Use the UK government’s website to find the apprenticeship standard that suits your trade.
Find a training provider: Partner with a local college or training provider that offers the appropriate apprenticeship programme. They will handle the educational side of the training.
Advertise the role: Use the government’s ‘Find an Apprenticeship’ service or other job boards to promote your vacancy.
Recruit and onboard: Interview candidates and select the best fit for your business. Once hired, provide an induction to help them settle in.

For more information on this process, you can take a look at Find an Apprenticeship Service.

How to train an apprentice

Training an apprentice effectively is key to ensuring they develop the skills and knowledge your business needs. By combining formal education with hands-on workplace experience, apprenticeships allow trainees to gain practical expertise while contributing to your business. Here’s some tips to approach your training process.

Training providers and courses

Apprenticeships in the UK are structured to include both workplace training and classroom-based learning. This dual approach ensures that apprentices gain practical, real-world experience while also developing a strong theoretical foundation.

Role of the training provider

Approved training providers, such as local colleges or private apprenticeship organisations, will deliver the academic portion of the apprenticeship. This typically includes attending classes, completing coursework, and taking assessments.

Workplace learning

As the employer, you’ll provide practical training that aligns with the apprentice’s learning plan. This involves giving them opportunities to apply what they’ve learned in the classroom to real-world tasks.

When selecting a training provider:

Choose one with a proven track record in your trade or industry.
Check their Ofsted rating and speak to other businesses that have used their services.
Ensure their courses align with the specific apprenticeship standard your apprentice is working towards.
Confirm how often they’ll liaise with you about the apprentice’s progress and what support they provide.

Creating a training plan

A structured training plan is essential for guiding the apprentice through their learning journey. It provides a roadmap for their development and ensures they meet the requirements of their apprenticeship.

Set clear goals

Identify the skills, knowledge, and behaviours the apprentice should achieve at each stage. For example, if you’re training an electrical apprentice, outline milestones like learning to install wiring for lighting circuits, testing electrical systems for faults, and completing a full consumer unit replacement.

Integrate On- and Off-the-Job training

Work closely with the training provider to ensure the apprentice’s classroom learning complements the tasks they’re doing at work.

Create a timeline

Map out key development points over the apprenticeship’s duration, ensuring there’s a logical progression from basic tasks to more complex responsibilities.

Schedule regular progress checks

Meet with your apprentice regularly to discuss their progress, address any challenges, and set new goals. This could be done monthly or quarterly, depending on their programme.

Provide mentoring

Assign a mentor within your team to guide the apprentice day-to-day. This could be an experienced worker who can offer advice, answer questions, and model best practices.

Best practices for training

The workplace is where apprentices gain their most valuable experience. As an employer, you play a critical role in shaping their development. Here are some tips to ensure effective training:

Lead by example

Demonstrate professionalism and high standards in your own work. Apprentices will naturally follow your lead, so it’s important to model the behaviours and attitudes you want to see in them.

Provide hands-on experience

Give apprentices the chance to try tasks under

supervision. Start with smaller, simpler jobs and gradually increase their responsibilities as they gain confidence and skills.

Encourage questions

Create an open and supportive environment where apprentices feel comfortable asking for help or clarification.

Rotate their experience

If possible, expose the apprentice to different aspects of the trade. For example, a carpentry apprentice could work on everything from framing to finishing to gain well-rounded skills.

Balance independence and supervision

While it’s important to supervise their work, avoid micromanaging. Allow apprentices to take initiative and problem-solve, stepping in only when necessary.

Supporting long-term development

Training doesn’t stop when the apprenticeship ends. Help your apprentice transition to a more independent role by:

Offering additional training or qualifications, such as advanced courses or certifications.
Providing opportunities for career development, such as moving into a lead role or specialising in a particular area.
Regularly reviewing their performance and setting new goals for growth.

By investing in a well-structured training process and creating a supportive environment, you’ll not only help your apprentice succeed but also gain a valuable team member who contributes to your business for years to come.

Employer checklist for hiring an apprentice

To make the process as smooth as possible, use this checklist:

✅ Define the apprentice’s job role and responsibilities.

✅ Ensure you meet legal requirements, including employment contracts and health and safety standards.

✅ Apply for funding or grants through the government apprenticeship scheme.

✅ Partner with an approved training provider.

✅ Create a clear training and development plan.

✅ Prepare an induction and onboarding process.

✅ Familiarise yourself with apprenticeship standards and compliance rules

Tips for success for both employers and apprentices

Retention: Offer clear career progression to encourage apprentices to stay with your business after qualifying.

Networking: Introduce apprentices to trade shows or networking events to expand their knowledge and industry connections.

Feedback: Regularly ask for feedback from your apprentice to improve their experience and your training approach.

Adaptability: Be prepared to address challenges, such as performance issues or adapting tasks to their skill level.

You can read case studies and advice at the Apprenticeship Standards Finder.

To finish….

Hiring an apprentice can be one of the best decisions you make for your business. By investing time and effort into training, you’re not only growing your team but also shaping the future of your trade. With government support and plenty of resources available, there’s never been a better time to take the plunge.

Get Tradesman Insurance from Protectivity

If you hire an apprentice in the UK, you will also need to consider the cost of Employers Liability insurance. It’s a legal requirement to have this cover for any employees, including apprentices – with fines for failing to comply.

At Protectivity, we provide affordable tradesman insurance to cover specialist incidents commonly faced by trades. Our policies include public liability up to £5 million as standard; you then have the option to add Employers’ Liability insurance, Contractor Works cover, Plant and Tools cover, financial loss and employee tools (only if you’ve included the other benefits). That way, when unforeseen circumstances occur, you can ensure you’re protected from unexpected costs.

Get Tradesman Insurance from Protectivity

*Disclaimer – This blog has been created as general information and should not be taken as advice. Make sure you have the correct level of insurance for your requirements and always review policy documentation. Information is factually accurate at the time of publishing but may have become out of date.

Last updated by

14:44:00 GMT • 29 January 2025

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My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

Contractor vs Subcontractor: Understanding the Key Differences for UK Tradespeople

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

22 January 2025

•

9 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get tradesman insurance from Protectivity

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

When working in the UK’s trades industry, you’ll often come across the terms “contractor” and “subcontractor.” While they might seem similar, these roles have distinct differences that are important to understand. Each role comes with its own set of responsibilities, risks, and opportunities, and understanding these can help you navigate your career or business more effectively.

For contractors, the job involves managing entire projects, working directly with clients, and often overseeing multiple subcontractors to ensure everything runs smoothly. Subcontractors, on the other hand, specialise in specific tasks, providing essential expertise that contributes to the overall success of a project.

Whether you’re looking to grow your business, plan your career, or simply understand how tradesman insurance applies to your role, knowing the differences is essential. Understanding the various types of contractors and subcontractors, their legal requirements, and how they work together can provide clarity in this dynamic industry. Let’s break it down.

What is a Contractor?

A contractor is someone who takes on a project—big or small—and manages it from start to finish. They work directly with the client, whether that’s a homeowner, a business, or another organisation, and are responsible for delivering the final result. Think of the contractor as the project manager; they organise resources, schedule tasks, and oversee every aspect to make sure it’s completed to standard.

Examples of contractors

· A general builder managing the construction of a new home.

· An electrician hired to rewire a commercial property.

· A landscaper creating a bespoke garden design for a client.

What is a Subcontractor?

A subcontractor, on the other hand, works under a contractor. They are hired to perform specific tasks that contribute to the overall project. While the contractor is busy managing the big picture, the subcontractor focuses on their specialised role, whether that’s plumbing, painting, or tiling.

Examples of subcontractors

A carpenter hired to craft wooden furniture.
A plasterer tasked with finishing interior walls.
A roofer brought in to install a new roof.

Subcontractors are often experts in their field, and they thrive by delivering high-quality, task-specific work.

The key differences between a contractor and subcontractor

Responsibility

Contractors are responsible for the entire project, from start to finish. They deal directly with the client, set budgets, and ensure that all work meets the agreed specifications. Subcontractors, meanwhile, focus solely on their assigned tasks, leaving project management to the contractor.

Client relationship

Contractors work directly with clients and are the face of the project. Subcontractors rarely have direct client interaction—their relationship is with the contractor who hired them.

Work scope

While contractors oversee the entire project, subcontractors are specialists who focus on their niche. Contractors might hire multiple subcontractors for a single project to handle different aspects.

Requirements for each role

Contractors

Legal Requirements

Contractors often need to register their business as self-employed or as a limited company. They must comply with the Construction Industry Scheme (CIS) to manage tax deductions for subcontractors and hold public liability insurance to protect against accidents and claims. For larger projects, employers’ liability insurance and professional indemnity insurance may also be necessary.

Skills

Contractors require strong project management and leadership skills. They must be able to coordinate multiple teams, plan budgets, and schedule work effectively while ensuring compliance with safety regulations.

Tools and Equipment

Contractors are usually responsible for sourcing and organising materials, tools, and equipment for the entire project. This might include renting heavy machinery or purchasing bulk materials, depending on the project’s scope.

Subcontractors

Legal Requirements

Subcontractors must be registered under the CIS for tax purposes and ensure they have appropriate insurance, such as public liability insurance. Depending on their trade, they may also need certifications, such as Gas Safe registration for gas engineers or NICEIC certification for electricians.

Skills

Subcontractors need expertise in their specific trade, with up-to-date knowledge of techniques, tools, and safety standards relevant to their field.

Tools and Equipment

Subcontractors are often expected to bring their own tools and equipment to the job. They may also need to invest in specialised tools for niche tasks, ensuring they can deliver high-quality work efficiently.

Salary and payment structure

The way contractors and subcontractors are paid can vary significantly:

Contractors usually negotiate a fixed price for the entire project and are responsible for managing their budget.
Subcontractors are typically paid a day rate or per completed task. Their income depends on the contractor’s payment schedule.

While contractors may earn more overall, they also bear the financial risk if a project goes over budget. Subcontractors, meanwhile, enjoy the stability of being paid for their specific contribution.

Different types of Contractors and Subcontractors

Within both roles, there are different types depending on the industry and project:

General contractors

These contractors manage the entire project and oversee every aspect, from planning to completion. They coordinate with clients, subcontractors, and suppliers to ensure the project stays on track.

Specialist contractors

These professionals focus on specific areas such as electrical systems, plumbing, or HVAC (heating, ventilation, and air conditioning). They are often hired for their niche expertise in delivering specialised components of a project.

Labour-only contractors

Labour-only contractors supply skilled workers to a project but do not provide materials or take responsibility for project management. For example, a team of carpenters hired to frame a house falls under this category.

Specialist tradespeople

Subcontractors in this category are experts in a particular field, such as bricklayers, plasterers, carpenters, or electricians. They are brought in to perform specialised tasks that require a high level of skill and experience.

Labour-only subcontractors

Similar to labour-only contractors, these subcontractors focus solely on providing manpower for specific tasks. They typically work under the direction of a contractor or project manager.

Supply subcontractors

These subcontractors provide specific materials, prefabricated components, or bespoke items required for the project. For example, a supply subcontractor might deliver steel beams or custom joinery pieces designed for a particular build.

By understanding these categories, both contractors and subcontractors can better identify their niche and market themselves effectively within the industry. This clarity also helps clients and project managers hire the right professionals for the job, ensuring smoother and more efficient project delivery.

Pros and Cons of being a Contractor vs Subcontractor

Contractor Pros

Higher earning potential

Contractors often earn more as they manage entire projects and negotiate the overall budget. This control allows for greater financial rewards if projects are managed efficiently.

Leadership opportunities

Contractors oversee teams, coordinate schedules, and liaise directly with clients. This role offers leadership experience and professional growth.

Greater control over projects

As a contractor, you call the shots. You decide which subcontractors to hire, the project timeline, and how resources are allocated.

Contractor Cons

Higher risk and responsibility

Contractors are accountable for the entire project. If something goes wrong—whether it’s delays, budget overruns, or client disputes—the responsibility lies squarely with them.

More paperwork and admin

From managing contracts to invoicing and compliance with legal requirements, contractors often deal with significant administrative tasks.

Requires strong organisational skills

Juggling multiple tasks, budgets, and team dynamics requires excellent planning and time management.

Subcontractor Pros

Focus on your trade

Subcontractors can concentrate on their area of expertise without worrying about the complexities of project management.

Lower financial risk

Unlike contractors, subcontractors aren’t responsible for the project’s overall budget. They get paid for their specific tasks, reducing financial stress.

Flexibility to work on multiple projects

Subcontractors have the freedom to work with different contractors and on various projects, providing variety and potential networking opportunities.

Subcontractor Cons

Dependence on contractors for work

Subcontractors rely on contractors to hire them. This dependence can lead to inconsistent work opportunities during quieter periods.

Limited earning potential

Compared to contractors, subcontractors earn less as they’re paid for their specific tasks rather than managing the entire project budget.

Less influence over project timelines and decisions

Subcontractors have little say in the overall schedule or decisions about the project. They must adapt to the contractor’s plan, even if it’s not ideal for them.

Can you be both a contractor and subcontractor?

You absolutely can! Many tradespeople switch between these roles depending on the job. For example, you might take on a loft conversion project as a contractor, managing the entire build. But on a separate project, you could be hired by another contractor to handle the electrical work as a subcontractor.

Balancing both roles can be rewarding, but it requires careful planning. It also has implications for tax and insurance, so it’s worth staying on top of your legal and financial obligations.

To finish…

Understanding the difference between contractors and subcontractors is essential for navigating the UK’s trades industry. Whether you’re managing a project or specialising in a particular trade, both roles have their own unique challenges and rewards.

At the end of the day, choosing the right role comes down to your skills, ambitions, and the type of work you enjoy. And no matter which path you take, make sure you’re covered with the right insurance to protect your livelihood.

Get Tradesman Insurance from Protectivity

Whether you’re a contractor or subcontractor, having the right insurance is a necessity. Contractors need to protect themselves from risks such as project delays, accidents, and client disputes. Subcontractors, meanwhile, face risks like injury or damage to a client’s property while on the job.

At Protectivity, we provide affordable tradesman insurance, designed for a wide range of contractors and subcontractors, to cover specialist incidents commonly faced by trades. Our policies include public liability up to £5 million as standard; you then have the option to add Contractor Works cover, Plant and Tools cover, financial loss and employee tools (only if you’ve included the other benefits). You can also buy our comprehensive tools insurance to ensure your equipment is covered should you need it. That way, when unforeseen circumstances occur, you can ensure you’re protected from unexpected costs.

Get a quote online to find out more about our trades policies.

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Last updated by

10:51:27 GMT • 4 February 2025

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My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

Weighing up raising prices for your small business

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

16 January 2025

•

11 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get small business insurance from Protectivity

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

There’s been a lot of discussion about raising prices in recent weeks, and you might be wondering whether this is the right move for your business. According to the British Chamber of Commerce (BCC), over half of UK businesses—91% of which are SMEs—plan to increase their prices in response to the ramifications of the Budget announced in Q4 2024.

A significant driver of these plans is the rising cost of hiring staff. The National Minimum Wage is set to increase to £12.21 per hour in April 2025 for employees aged 21 and over, alongside a rise in employers’ National Insurance contributions to 15.05%. For many, the cost of staffing has become a growing barrier to investment and growth.

Raising prices may seem obvious, especially since many businesses are doing the same. In fact, it could be argued that not doing so risks falling behind competitors. However, this decision is not without its challenges and potential consequences. To help, we’ve taken a closer look at the key considerations and implications.

Ultimately, there’s always a bigger picture to evaluate. Factors such as competitor pricing, the cost of goods, and ongoing skills shortages will all play a role in shaping your decision.

Current landscape

Economic pressure

Rising operational costs are squeezing small businesses across the UK. We’ve already touched on the rise in minimum wage and national insurance, these changes, compounded by inflation and broader economic challenges, are leaving many SMEs grappling with the decision of how to remain sustainable while managing higher expenses.

Industry examples

Certain sectors are feeling the strain more acutely. A reported 20% of small businesses are spending significantly more on plant and equipment to stay competitive, with industries like trade and catering particularly affected.

For example, catering businesses face the dual challenge of increased ingredient costs and higher wages, while tradespeople must manage the rising prices of tools and materials. These additional expenses create a growing need for businesses to evaluate their pricing strategies carefully.

Customer sensitivity

In a cost-of-living crisis, balancing the need for price increases with customer affordability is a delicate task. Consumer behaviour has shifted, with many buyers becoming increasingly price-conscious, comparing options more rigorously, and cutting back on non-essential spending. However, research suggests that customers will pay more when they perceive value or feel a strong loyalty to a brand. Understanding the dynamic of perceived value is key for businesses looking to navigate the fine line between maintaining customer trust and covering rising costs.

Given the current economic challenges, it’s clear that many small businesses are navigating uncharted waters—but within these challenges lies an opportunity to reassess strategies and strengthen your business for the future.

One key consideration is whether raising prices could provide the stability needed to offset rising costs, maintain quality, and ensure long-term success. Of course, this decision comes with both advantages and potential risks, so let’s take a closer look at the pros and cons to help you make an informed choice.

The pros of raising prices

Covering increased costs

Raising prices is one of the most straightforward ways to offset increased expenses such as wages, taxes, and materials. Without these adjustments, many small businesses risk running at a loss, which can jeopardise their long-term survival. A carefully considered price increase allows you to absorb these costs while continuing to operate sustainably.

Maintaining profit margins

Preserving profit margins is vital for reinvestment and growth. Whether it’s upgrading equipment, expanding your team, or improving your services, healthy margins enable your business to thrive rather than simply survive. By proactively adjusting prices, you can maintain the financial stability needed to invest in your future.

Value perception

When paired with exceptional quality or improved offerings, higher prices can actually enhance how customers perceive your business. Many buyers equate higher costs with superior value, so positioning your price increase alongside clear improvements—such as better service or additional features—can turn a challenge into an opportunity.

Long-term viability

Adapting pricing to align with market realities is essential for business longevity. By staying ahead of rising costs and industry trends, you demonstrate adaptability and foresight, which are crucial in maintaining your position in a competitive marketplace.

The cons of raising prices

Customer backlash

One of the biggest risks of raising prices is alienating existing customers. If the increase feels unjustified or sudden, customers may feel undervalued and take their business elsewhere. Clear communication and transparency are essential to mitigate this risk.

Market competition

In highly competitive industries, even small price adjustments can make your offerings appear less attractive compared to cheaper alternatives. Competitors who don’t raise their prices may gain an advantage, so it’s important to monitor your market and differentiate your value.

Economic climate

The current economic climate is challenging for many consumers. Raising prices during a cost-of-living crisis may put additional pressure on your customers, potentially damaging your relationship with them. Balancing your financial needs with their ability to pay is crucial to maintaining loyalty.

Strategic considerations

When it comes to adjusting your pricing, strategy and understanding buyer psychology can make all the difference. It’s not just about crunching the numbers—it’s about knowing how your customers think and what motivates their decisions. By taking the time to assess your customers’ willingness to pay and how they perceive value, you can communicate price changes more effectively and even turn potential pushback into an opportunity to strengthen loyalty.

Thinking about what makes your customers tick might feel like stepping into unfamiliar territory, but it’s worth it. Insights into perceived value, loss aversion, and the importance of transparency can help you navigate the tricky waters of price increases with confidence and clarity. After all, a little psychology could be just the inspiration you need to shake things up and set your business up for long-term success.

Perceived value matters most

Customers are unlikely to pay more for the same product. But if your customers feel they’re getting something extra—better quality, superior reliability, or an all-round more polished experience—they’re more likely to accept the increase. Think of it like buying a takeaway coffee: you could get a cheaper instant brew at home, but that expertly crafted latte from your local café, with its perfectly frothed milk and rich flavour, feels worth the extra spend.

Loss aversion

People tend to hate losing something more than they love gaining something. You can highlight the added value to prevent customers from feeling they are losing out. Flip the narrative. Show them what they’re gaining—be it better service, improved products, or the peace of mind that you’re still around because you’ve stayed sustainable.

The power of anchoring

Customers compare prices – fact. Whether it’s your competitors or what they paid last year, so pre-empting this with the right messaging can help them navigate to you.

To make a price jump feel less dramatic, anchor your increase to something concrete. Maybe it’s the rising costs of materials, higher wages for your amazing team, or a shiny new feature you’ve added. People like to feel there’s a logical reason behind a change.

Transparency builds trust

Honesty builds trust. Be upfront about why your prices are going up. Customers are more likely to accept changes when they understand the “why.” So, whether it’s inflation, supply chain issues, or the cost of keeping your standards high, customers appreciate knowing the story.

Alternatives to raising prices

Operational efficiency

Cutting costs without compromising quality is a powerful way to protect your margins without raising prices. Start by examining your current operations for inefficiencies. Are there processes that could be automated or streamlined? For example, using digital tools for inventory management or switching to cloud-based accounting software can save time and money.

Renegotiating supplier contracts can also lead to substantial savings, particularly if you’ve built a strong relationship over time. Don’t forget to review recurring expenses like energy bills—investing in energy-efficient equipment could reduce costs in the long term.

Diversifying income streams

Expanding your offerings can generate new revenue streams and reduce dependence on price increases. This could mean introducing complementary products or services, entering new markets, or even exploring partnerships with other businesses. For example, a café might start selling branded coffee beans or offering barista workshops, while a tradesperson could launch a consultancy or training service. Diversification not only boosts revenue but also helps protect your business against fluctuations in demand.

Value-added pricing models

Rather than a blanket price increase, consider offering tiered or subscription pricing. For example, a basic, standard, and premium tier allows customers to choose the level of service or features that best suit their needs. This approach provides flexibility for price-sensitive customers while encouraging others to pay more for enhanced value. Subscription models can also create consistent revenue streams while fostering customer loyalty. Think of it as offering options for everyone without alienating any segment of your audience.

For more details on pricing, take a look at Pricing your products for profit.

The bigger picture

Economic adaptability

Staying nimble is critical in today’s rapidly changing economic climate. Monitor industry trends, government policies, and market conditions regularly. For example, keep an eye on inflation rates, competitor strategies, and shifting consumer preferences.

Being proactive allows you to adjust your strategy before challenges arise. Whether that’s refining your product offerings, entering a niche market, or rethinking your marketing approach, adaptability can keep you ahead of the curve.

Benchmarking

Understanding where your pricing stands in relation to your competitors is vital. Research similar businesses in your industry to gauge whether your prices are competitive, undervalued, or premium.

Tools like industry reports, online reviews, and customer feedback can help you gather insights. Benchmarking isn’t just about comparing numbers; it’s also about identifying where you excel and how you can differentiate your value to justify your pricing.

Government support

Don’t overlook the potential benefits of government grants, loans, and relief programmes designed to support small businesses. For example, schemes focused on energy efficiency, workforce development, or innovation could help reduce costs or fund growth initiatives.

Local councils often have business support programmes, too, so check what’s available in your area. Taking advantage of these resources not only offsets rising costs but also allows you to invest in your business without relying solely on revenue increases.

And finally…

Navigating the decision to raise prices is complex, but with careful planning, clear communication, and a focus on value, it can be a strategic step toward sustaining and growing your business. Remember, you’re not alone—many small businesses are facing similar challenges, and by adapting thoughtfully, you can position your business for long-term success.

Discover Small Business Insurance from Protectivity

Rising costs might be making things tighter right now, but some essentials, like small business insurance, shouldn’t be overlooked. It might be tempting to delay it, but doing so could leave your business exposed when you need protection the most.

Protectivity’s small business insurance is specifically designed to support you if claims are brought against your business, giving you peace of mind to focus on what you do best.

With public liability automatically included, you’re covered if a third party sues your business—for example, if a client or member of the public suffers an injury or property damage. For those with employees, Employers’ Liability cover ensures protection against claims brought by your team, keeping your business compliant and secure.

Find out more and get an instant quote suited to your needs.

Get Small Business Insurance from Protectivity

Last updated by

10:29:10 GMT • 16 January 2025

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

How much can a locksmith earn in the UK?

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

15 January 2025

•

10 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get Locksmith insurance from Protectivity

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

Locksmithing might not be the first profession that comes to mind when thinking about lucrative careers, but it’s a trade with a surprising amount of earning potential and long-term security.

As technology evolves and the demand for skilled professionals remains steady, locksmithing offers a unique combination of hands-on work and the chance to build a profitable career. Whether you’re interested in working for an established company, becoming self-employed, or specialising in advanced security solutions, the opportunities are both varied and rewarding.

Let’s look at how much locksmiths in the UK can earn, explore the factors that influence income, and share tips to maximise your earning potential. If you’re considering a future as a locksmith, this guide will provide the clarity and insight you need to get started on the right path!

What different types of locksmiths are there?

Working as a locksmith is a diverse trade with several specialisations. Common types of locksmiths include:

Residential Locksmiths: Focus on homes and private properties, handling tasks like lock installations, repairs, and key duplication.

Commercial Locksmiths: Work on businesses and larger properties, often dealing with high-security locks, access control systems, and master key systems.

Automotive Locksmiths: Specialise in car locks and keys, including key programming and ignition repairs.

Safe Specialists: Work specifically with safes and vaults, helping clients secure or access them

Electronic Security Locksmiths: Deal with advanced technologies like smart locks, keyless entry systems, and electronic access control.

Each specialisation requires unique skills and tools, making it possible for locksmiths to carve out a niche that suits their interests and market demand.

Average earnings for locksmiths in the UK

The average annual salary for locksmiths in the UK typically falls between £25,000 and £35,000. For those just starting, earnings might range from £18,000 to £25,000 as they build their skills and reputation.

Entry-Level Locksmiths (£18,000 and £25,000)

Entry-level locksmiths, often starting with apprenticeships or training programmes, tend to earn between £18,000 and £25,000 per year. At this stage, the focus is on learning the trade, building a local reputation, and acquiring essential tools.

Mid-Level Locksmiths (£25,000 and £35,000)

Mid-level locksmiths, with a few years of experience and an established client base, typically earn between £25,000 and £35,000 annually. These locksmiths often handle more complex tasks, such as high-security lock installations or emergency callouts.

Specialised Locksmiths (£40,000 to £50,000)

Specialists in areas like automotive locksmithing, electronic security, or safes can see earnings rise significantly. With expertise in these fields, earnings can range from £40,000 to £50,000 or more. Their advanced skills command higher fees and allow them to take on specialised jobs.

Self-Employed Locksmiths

Self-employed locksmiths often have the highest earning potential, particularly if they offer 24/7 emergency services. Annual earnings can exceed £50,000, especially with effective marketing and strong client retention. Emergency callouts and contracts with local businesses can be lucrative sources of additional income.

Self-Employed vs. Employed Locksmiths

Self-Employed Locksmiths

Pros: Flexibility, control over pricing, higher earning potential, and the ability to scale your business. You’re your own boss, which means you can focus on the services you enjoy.

Cons: Requires initial investment in tools, marketing, and potentially a van. There’s also less job security, and income can fluctuate depending on demand.

Opt for Self-Employment if…

You value independence and have the entrepreneurial drive to grow a business.
You’re willing to invest upfront in tools and marketing.
You enjoy the idea of diversifying services and building long-term client relationships.

Employed Locksmiths

Pros: Regular income, job security, and fewer responsibilities (e.g., no need to handle marketing or admin tasks).

Cons: Limited earning potential compared to self-employment. Often less flexibility in work hours and types of jobs undertaken.

Opt for Employment if…

You prioritise stability and predictability in your income.
You’re new to locksmithing and prefer to gain experience without the risks of running a business.
You want to focus purely on the craft without dealing with the administrative and marketing side of things.

What is a good salary for a locksmith?

You may be interested to know – do locksmiths make good money? A “good” salary is subjective and depends on individual expectations and lifestyle. However, for locksmiths in the UK, earning anywhere between £25,000 and £40,000 per year is considered solid for those working full-time.

This figure increases with experience, location, and specialisation. For example, locksmiths in London and other major cities tend to earn more due to higher demand and cost of living. Those with niche skills, such as automotive locksmithing or high-security systems expertise, can command even higher rates.

What makes the locksmith trade particularly appealing is the potential to scale your income. By specialising, diversifying services, or offering emergency callouts, locksmiths can significantly boost their earnings. It’s not just a job; it’s a profession where hard work and skill translate directly into financial rewards.

Factors that affect earnings

Several factors influence how much a locksmith earns:

Location

Locksmiths in urban areas like London, Manchester, or Birmingham typically earn more due to higher demand. However, competition is also steeper in these regions, so building a strong reputation is essential to capturing high-value jobs. In rural areas, while demand may be lower, locksmiths who position themselves as reliable and available can still earn solid incomes.

Experience

Like any trade, seasoned professionals earn more than those just starting. As experience grows, locksmiths can take on more complex jobs, command higher fees, and work more efficiently, completing more tasks in less time.

Specialisation

Offering niche services such as automotive locksmithing or electronic security installations can boost earnings significantly. Customers are often willing to pay a premium for advanced skills, particularly in high-security or high-value situations.

Availability

Offering 24/7 emergency services can significantly increase income. Emergency callouts, particularly outside regular hours, often attract premium fees. Strategically marketing this availability can ensure a steady stream of high-value clients.

Reputation

Positive reviews and strong word-of-mouth referrals can lead to higher-paying jobs and loyal customers. Investing time in excellent customer service and consistently delivering quality work pays dividends over time, as satisfied clients become your most reliable advocates.

How to specialise as a locksmith?

Specialisation is one of the best ways to stand out and increase earnings. These are some popular niches within the locksmith trade to provide some inspiration, once you’re experienced:

Automotive locksmithing

Dealing with car locks and keys, including key programming for modern vehicles. The rise in keyless entry systems makes this a highly profitable area for those with the right tools and training.

Electronic security systems

Installing and maintaining smart locks, access control systems, and high-security setups. As smart home technology grows, this field is becoming increasingly lucrative.

Safe locksmithing

Specialising in opening, repairing, and securing safes and vaults. This area often involves working with high-value clients or businesses, which can lead to premium rates.

High-security locks

Providing advanced locking systems for commercial properties. This work requires deep technical knowledge and often comes with higher pay due to its critical nature.

To specialise, consider enrolling in advanced courses, obtaining relevant certifications, and investing in specialised tools. Joining professional organisations or networks can also provide resources and connections that accelerate your progress in a specific niche.

Tips to Maximise Earnings

These are a few practical ways to boost your locksmith income, when operating as self-employed:

Build your reputation

Deliver excellent service, collect reviews, and maintain a professional image. Reputation management can also involve proactively addressing any negative feedback online to maintain trust.

Offer emergency services

Many customers are willing to pay a premium for 24/7 availability. To maximise the potential of this service, ensure your contact details are easily accessible online and listed prominently in emergency directories.

Stay updated

Learn about the latest technologies, such as smart locks and keyless systems. Attending industry events and workshops can keep you ahead of trends and open doors to new service opportunities.

Expand your services

Offer related services like key cutting, security assessments, and lock maintenance. Diversifying ensures you’re capturing as much of your market’s needs as possible.

Market effectively

Use online advertising, social media, and local directories to promote your services. Running targeted campaigns in your local area can yield significant results, especially for emergency services.

Network locally

Build relationships with estate agents, landlords, and security companies. Partnerships with these businesses can create steady streams of work and build your profile in the community.

Invest in quality tools

High-quality tools make jobs faster and more efficient, which can lead to better client satisfaction and the ability to handle more work in less time.

What are the long-term future earnings for a locksmith?

So, as a locksmith, is it a good long-term business? Working in the trade can offer steady long-term earning potential. As you gain experience and build your reputation, you can increase your rates and take on higher-value jobs. Staying adaptable to new technologies (like smart locks and electronic security) ensures that your skills remain in demand.

Additionally, if you run your own business, you can expand by hiring staff, offering training courses, or diversifying into related fields like security consultancy.

Locksmithing is a rewarding and flexible career with strong earning potential. Whether you choose to work for a company or strike out on your own, there are plenty of opportunities to grow your income and establish yourself in the trade. By specialising, staying up-to-date, and delivering excellent service, you can build a successful career as a locksmith in the UK.

Get Locksmith Insurance from Protectivity

As part of your income protection, particularly if you’re self-employed having comprehensive insurance can help you avoid costly setbacks if things go wrong.

At Protectivity, we specialise in providing locksmith insurance to people just like you. Our cover includes up to £5 million of public liability cover, employers’ liability if you hire other people, and the option to add All Risk Cover, which can include, owned plant & tools, hired in plant and contractors works cover. We now also offer tools insurance for tradespeople, meaning you can protect your tools against theft and damage.

Find out more about our affordable policies, excellent claims handling, and monthly payment options when you request a quote today.

Get Locksmith Insurance from Protectivity

Last updated by

14:20:06 GMT • 23 January 2025

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

How to become an electrician in the UK

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

8 January 2025

•

11 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get Electricians' insurance from Protectivity

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

So, you’re thinking about becoming an electrician? A great choice! Whether you’re fresh out of school and planning your first career or seeking a fresh start in a thriving industry, becoming an electrician offers a practical and rewarding pathway. It’s a career filled with opportunities to grow, earn well, and make a real impact on the world around you—after all, electricians literally keep the lights on!

In today’s world, skilled electricians are in high demand, thanks to the ever-increasing reliance on technology, energy-efficient systems, and renewable energy solutions. This isn’t just a job—it’s a profession that offers job security, flexibility, and the chance to specialise in exciting, cutting-edge areas like electric vehicle (EV) charging systems or solar panel installations.

Let’s walk you through everything you need to know to get started. From the skills you’ll need and the training involved to the different types of electricians you can become, we’ll shed some light (pun intended!) on what this career has to offer.

Why choose a career as an electrician?

Are you looking for a career that’s stable, well-paid, and anything but boring? Let’s see if this could be the perfect fit for you, here some of the main benefits of the job:

Job Security: The demand for skilled electricians is growing rapidly across the UK. As homes, businesses, and industries continue to expand and upgrade their electrical systems—and with the push towards sustainable energy solutions—electricians are more essential than ever. With this level of demand, job security is practically guaranteed.

Decent Pay: Let’s be honest—income matters. Qualified electricians enjoy solid earning potential, and with experience or specialisation, your salary can grow significantly. If you decide to go freelance or start your own business, the earning possibilities can be even greater.

Flexibility: One of the biggest advantages of being an electrician is the flexibility it offers. You can work for a company, become self-employed, or even establish your own electrical business. This freedom allows you to shape your career around your personal goals and lifestyle.

Progression Opportunities: The journey doesn’t stop once you’re qualified. The profession offers countless opportunities for growth. You might decide to specialise in high-demand areas like renewable energy or electric vehicle charging systems. Alternatively, you could take on supervisory roles, train the next generation of electricians, or move into engineering.

Variety: If the idea of a predictable, monotonous job sends shivers down your spine, you’re in the right place. Electricians rarely face the same day twice. One day, you might be troubleshooting a fault in a home; the next, you could be wiring a cutting-edge commercial building. The variety keeps things fresh and engaging.

Skills Required

Worried you don’t have the skills yet? Don’t stress—many of these can be learned during training. Here are the basics you’ll need:

Technical Know-How

Electricians deal with circuits, wiring, and safety regulations daily. While you don’t need to be an expert right away, having an interest in how things work and a willingness to learn technical concepts is a great starting point.

Problem-Solving

No two electrical issues are the same. Whether it’s troubleshooting a power outage in a home or diagnosing a fault in an industrial machine, you’ll need to think critically and quickly to identify the root cause and implement solutions.

Attention to Detail

Precision is key in this job. A small oversight could lead to safety hazards, system failures, or costly mistakes.

Communication Skills

You won’t just be working with cables and tools—you’ll also be working with people. Whether it’s explaining a repair to a homeowner, collaborating with other tradespeople on a construction site, or discussing plans with clients, clear communication is vital.

Physical Fitness

This isn’t a desk job! Electricians often work on their feet, sometimes in cramped spaces, at heights, or in challenging environments.

Adaptability

The world of electrical work is always evolving, with new technologies and regulations emerging regularly. Being open to learning and adapting ensures you stay ahead of the curve, whether it’s mastering smart home systems or understanding renewable energy installations.

Teamwork and Independence

Depending on the project, you might work as part of a team or tackle jobs solo. Flexibility in both scenarios is important.

Career pathways to become an electrician

You may be approaching the end of school and looking at career options, or perhaps you’re asking yourself – can I train to be an electrician at 40? Whether you’re 16 or 46 there are options you can take.

For School Leavers:

Start with GCSEs (maths and science are particularly useful).
Enrol in an apprenticeship where you’ll combine hands-on work with study.
Consider college courses in Electrical Installation or Engineering.

For Career Changers:

Look into fast-track adult training courses.
Recognise any transferable skills (e.g., problem-solving or practical experience).
Seek out apprenticeships or placements to gain real-world experience.

Do electricians’ make good money?

Typically, you’ll start out with a low salary but the opportunities to make good money quickly improve once your qualified.

Average salaries range from entry level £24,000 to experienced £55,000. For more information read about the earnings of electricians.

Training and Qualifications

You may well ask; how quickly can I qualify as an electrician? To become a qualified electrician, you’ll need a mix of practical experience and recognised qualifications. Here are the typical routes and approximate time to qualify.

Apprenticeship Route (Typical Time: 3-4 Years)

This is the most traditional and popular route for school leavers. An apprenticeship combines practical, on-the-job training with classroom-based learning. During this time, you’ll work under the supervision of a qualified electrician while studying for qualifications like:

Level 2 and Level 3 Diplomas in Electrical Installation.
NVQ Level 3 in Electrotechnical Services.
AM2 Assessment (the final test of competence).

The apprenticeship route generally takes around 3 to 4 years, but it’s thorough and equips you with both qualifications and valuable work experience.

Fast-Track Adult Courses (Typical Time: 12-24 Months)

If you’re a career changer looking to qualify more quickly, there are intensive training courses designed for adults. These courses aim to cover the same material as traditional pathways but in a shorter timeframe, often requiring a more intense commitment.

These courses can take between 12 and 24 months and typically include:

Level 2 and Level 3 Diplomas in Electrical Installation.
Some practical experience or work placements.

While faster, these routes often require you to arrange additional hands-on experience to build competence and confidence, particularly to meet the standards for the NVQ and AM2.

NVQ and AM2 Pathway for Experienced Workers (Typical Time: Varies)

For individuals with significant prior experience in a related trade (e.g., maintenance or construction), it’s possible to complete an Experienced Worker Assessment. This pathway focuses on demonstrating competence through your work and completing any necessary qualifications, such as:

NVQ Level 3.
AM2 Assessment.

The time this takes depends on your existing skills and experience but typically ranges from 6 months to 2 years.

Specialist or Part-P Qualified Electricians (Typical Time: 6-12 Months)

If you’re aiming to become a domestic installer—someone qualified to work on residential projects but not necessarily large-scale commercial or industrial systems—this can be achieved in as little as 6-12 months. This route often includes Part-P qualification and courses covering basic domestic installations but doesn’t provide full electrician status (e.g., NVQ Level 3 or AM2).

For more information read our blog on the qualifications you need as an electrician.

Costs and Funding Options

Here’s the lowdown on what you’ll need to budget for:

Courses and Training: Costs vary but often range from £1,000–£6,000.
Tools: A decent starter kit could cost a few hundred pounds.
Exams and Certifications: These are usually included in training but might require extra fees.

Funding Help

Young People: Apprenticeships are often free and include a wage.
Career Changers: Explore government grants, career loans, or employer-sponsored schemes.

Career opportunities once qualified

Not all electricians are created equal, and there’s a wide range of specialisms to suit your interests:

Domestic Electricians

These are the professionals who work on homes and residential properties. From installing new plug sockets and lighting to full-scale rewiring projects, domestic electricians ensure that homes are safe, functional, and up to code.

Commercial Electricians

If offices, shops, and business premises sound more your speed, this might be the route for you. Commercial electricians work on systems designed for higher demands than those in homes.

Industrial Electricians

Fancy tackling large-scale projects in factories, manufacturing plants, or industrial sites? Industrial electricians deal with heavy machinery, specialised equipment, and high-voltage systems. It’s a highly technical field that requires an understanding of industrial processes and safety regulations.

Installation Electricians

Installation electricians are all about new builds and large-scale projects. They’re typically involved at the construction stage, working on everything from homes to commercial buildings and industrial facilities.

Maintenance Electricians

While installation electricians build systems, maintenance electricians keep them running smoothly. They focus on troubleshooting and repairing electrical faults, conducting routine inspections, and ensuring everything continues to work as it should.

Specialist Electricians

If you’re intrigued by cutting-edge technology, the specialist route might be for you. As the world shifts towards greener energy and smarter systems, electricians who focus on emerging areas like electric vehicle (EV) charging points, renewable energy installations (solar panels, wind turbines), or smart home technology are in high demand. Specialists often work on projects that push the boundaries of what’s possible, making this an exciting and future-proof career choice.

Registration and licences

To work legally and build trust with clients, you’ll need to:

Register with organisations like NICEIC or JIB.
Apply for a CSCS or ECS card, which allows you to work on construction sites.
Stay up to date with industry standards and safety regulations.

Get Electricians’ Insurance to start your career, from Protectivity

If you’re working for an employer, then you’ll normally be covered by whatever insurance provision they have in place. But if you’re working on a self-employed basis or running your own electrician business where you’re employing other people, then having your own cover in place is a must. If something goes wrong, the financial implications can be severe, which is why having the correct tradesman insurance is essential.

At Protectivity, we specialise in providing electricians’ insurance to professionals and entrepreneurs just like you. Our cover includes up to £5 million of public liability cover, employers’ liability if you hire other people, and the option for commercial legal protection in case you need support in this area. We also offer tools insurance, ideal for electricians wanting to protect their equipment.

Find out more about our affordable policies, excellent claims handling, and monthly payment options when you request a quote today.

Get Electricians’ Insurance from Protectivity

Last updated by

14:22:43 GMT • 23 January 2025

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

What happens if you miss the tax return deadline?

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

7 January 2025

•

8 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get small business insurance from Protectivity

Bee Ingram

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns with the brand’s voice and strategy.

With four weeks to go before the deadline, HMRC have announced that 5.4 million taxpayers still need to complete their self-assessment tax return. Are you one of them?

If you’re self-employed or a sole trader in the UK, filing your self-assessment tax return is a crucial part of managing your finances. It’s not exactly a task most people look forward to, but missing the deadline can lead to some serious consequences. Whether it’s due to procrastination, confusion, or unexpected life events, filing late can result in penalties, stress, and extra costs.

If you’ve left it to the last minute this year…take a breath, don’t panic, there’s still time! Here are some tips to highlight what happens if you miss the self-assessment deadline, most importantly – what you can do about it, and common queries surrounding a late tax return.

When is the deadline to submit your tax return in the UK?

For most people, the self-assessment deadline falls on 31st January 2025 following the end of the tax year. For example, the deadline for the 2023/24 tax year (which runs from 6th April 2023 to 5th April 2024) is 31st January 2025. If you’re filing a paper tax return by post, the deadline is earlier: 31st October 2024.

Failing to meet these deadlines can result in penalties, so it’s vital to mark them in your calendar. It’s also a good idea to start preparing well in advance—tax returns are rarely a task you want to rush through at the last minute.

Who should submit a tax return?

Self-assessment isn’t just for the self-employed, although they make up a significant portion of filers. You’ll need to submit a tax return if:

You’re self-employed or a sole trader earning over £1,000.
You receive untaxed income, such as rental income, dividends, or investment gains.
You earn more than £50,000 and claim Child Benefit, triggering the High-Income Child Benefit Charge.
You need to pay Capital Gains Tax or have other income that hasn’t been taxed at source.

If you’re unsure whether you need to submit a return, it’s better to check with HMRC rather than assume—it could save you a headache later.

What should you do if you think you’ll miss the deadline?

If you know you’re cutting it close, don’t panic. There are steps you can take to minimise the fallout:

Contact HMRC: If you’re facing circumstances beyond your control, such as illness or a bereavement, let HMRC know as soon as possible. They may offer support or leniency, especially if you act promptly.

Gather your documents quickly: Even if the deadline is near, organise your income records, expense receipts, and other relevant paperwork. This will make the process faster.

Consider an extension: While rare, you may be able to get an extension for extraordinary circumstances. This usually involves proving why you couldn’t meet the original deadline.

Work with an accountant: A professional can help you file as quickly and accurately as possible, reducing the risk of errors but at a late stage they will likely be fully committed to other clients.

What are the penalties for a late tax return?

The penalties for missing the deadline can add up quickly:

£100 Late Filing Fee: This applies if your return is up to 3 months late.
Daily Penalties: After 3 months, you’ll be charged £10 per day, up to a maximum of £900.
Additional Penalties: At 6 months late, you’ll face a further 5% of the tax due or £300, whichever is greater. The same applies after 12 months.
Interest on Unpaid Tax: Any tax you owe will accrue interest from the day after the payment deadline.

For example, if you owe £5,000 in tax and delay your return for over 6 months, you could face penalties exceeding £1,000—on top of the unpaid tax itself.

What if your accountant has filed it late?

Even if you rely on an accountant, the responsibility ultimately falls on you as the taxpayer. If your accountant fails to file on time, here’s what you should do:Communicate immediately: Ask your accountant for an explanation and whether they can rectify the issue promptly.

Document everything: Keep records of your correspondence in case you need to appeal any penalties.

Raise a complaint: If the accountant’s negligence has caused penalties, you can file a complaint with their professional body.

While HMRC is unlikely to waive penalties unless you can prove exceptional circumstances, showing that you acted in good faith may help.

What if you didn’t know you had to submit a tax return?

Ignorance isn’t usually a valid excuse, but HMRC does recognise that some individuals genuinely don’t realise they need to file. Common scenarios include:

Newly self-employed individuals: If you’ve recently started working for yourself, you may not know about the self-assessment system.

Complex income situations: If you have multiple income sources, it’s easy to overlook the requirement.

If this applies to you, register with HMRC as soon as possible. Be honest about why you didn’t file, and they may reduce penalties. However, don’t delay—acting quickly is key.

How to submit a late tax return

Filing late isn’t ideal, but it’s better than not filing at all. Here’s how to do it:

Log in to your HMRC account: Use your Government Gateway credentials.
Prepare your documents: Include income statements, expense receipts, and any relevant records.
File the return online: Complete the form accurately to avoid triggering further penalties.
Pay any tax owed: Settle the outstanding amount, including penalties and interest.

If you’re unsure about any part of the process, seek advice from an accountant or HMRC’s helpline.

How to appeal a late penalty charge for late submission

If you’ve received a penalty for filing late and believe it’s unfair, you have the right to appeal. Here are the steps you should take in these circumstances:

Understand your reason for the appeal:

HMRC will only consider appeals for specific “reasonable excuses.” Examples include:

A serious illness or hospitalisation.
The death of a close family member shortly before the deadline.
Fire, flood, or theft preventing you from filing.
Technical issues with HMRC’s online services.

Gather evidence:

To support your appeal, collect evidence such as:

Medical records or a doctor’s note.
Death certificates for close relatives.
Screenshots of error messages if technical issues occurred.

Submit your appeal

Use HMRC’s online service or submit a written appeal via post. Include your unique taxpayer reference (UTR), details of the penalty, and an explanation of your circumstances.
Appeals can also be made by calling HMRC’s helpline for guidance.

Await HMRC’s decision

HMRC will review your appeal and notify you of their decision. This can take several weeks, so be patient but follow up if you don’t hear back.

Escalate if necessary

If your appeal is rejected and you still believe you have a strong case, you can request a review or take your case to the Tax Tribunal.

Acting promptly is critical. Appeals must generally be made within 30 days of the penalty notice.

Preventing future issues with your tax returns

Avoid the stress of late filing by taking proactive steps:

Start early: Don’t wait until January to think about your tax return.
Use accounting software: Tools like QuickBooks or Xero can simplify the process.
Hire a trusted accountant: Work with someone who understands your needs and won’t leave things to the last minute.
Set reminders: Use digital tools or a calendar to keep track of deadlines.

Missing the self-assessment tax return deadline isn’t the end of the world, but it can lead to unnecessary stress and financial penalties. By understanding your obligations, staying organised, and acting quickly if you’re late, you can minimise the impact.

Remember, HMRC’s deadlines are there for a reason, but they’re not designed to catch you out. If you’re ever unsure or need help, reach out to a professional or HMRC for guidance.

Get business insurance with Protectivity this year

As you’re completing your tax return you may also have insurance in mind. Ensuring you have the necessary cover for your business can avoid costly setbacks if things go wrong, often beyond your control, and you need to make a claim.

Protectivity offers affordable small business insurance for sole traders and small business owners just like you, specialising in a wide range of different activities. Public liability is included with options to add extras such as equipment cover, employers’ liability and other specific industry add-ons.

Whether you’re looking for specialist trades cover, pet care business insurance, catering insurance, crafters insurance, or another small business, find out about all the small businesses we can cover.

You can also get in touch with our team to discuss your specific requirements.

Get Small Business Insurance from Protectivity

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