Last updated: 14 October 2026
Do you need to register for VAT as a plumber?
Only if your VAT-taxable turnover goes over £90,000 in any rolling 12 months, or you choose to register voluntarily. Turnover includes labour and the materials you charge customers for. Many self-employed plumbers go over the threshold sooner than they expect because materials are included. Once you are registered, the domestic reverse charge applies to most work you do for other VAT-registered builders and contractors.
What counts towards the £90,000
- Labour charges
- Materials, parts and boilers you supply
- Call-out fees and emergency charges
- Gas safety certificates and servicing
Turnover is your total sales before expenses, not your profit.
Example
A plumber charges £55,000 for labour and £40,000 for materials in a year. Turnover is £95,000, so he must register, even though his profit may be only £45,000.
Domestic reverse charge for construction
If you are VAT-registered and supply construction services to another VAT-registered business that is registered for CIS and uses your services for its own construction work, you don’t charge VAT. Instead, you mark the invoice “reverse charge” and the contractor accounts for the VAT. The reverse charge doesn’t apply to:
- homeowners, landlords and other end users
- work outside CIS, for example some repairs to appliances
Rates of VAT on plumbing work
| Work | VAT rate |
| Most repairs and installations | 20% |
| Installing heat pumps or certain energy-saving materials in homes | 0% until March 2027 |
| Renovation of homes empty for 2 years or more | 5% |
| New-build homes (work for the developer) | 0% |
Zero-rating for energy-saving materials applies to installations in residential property. Check that each job qualifies.
Is voluntary registration worth it?
If you mainly work for VAT-registered contractors, registering early can help, because the reverse charge means you charge no VAT and can reclaim VAT on your van and tools. If you mainly work for homeowners, registering adds 20% to your prices, so stay below the threshold if you can.
The flat rate scheme for plumbers
The flat rate for building services (labour only) is higher than for building services with materials. If you spend less than 2% of turnover on goods, the limited cost trader rate of 16.5% applies. Reverse charge sales are not included in flat rate turnover.
Common VAT mistakes for trades
Plumbers and other trades often miss the domestic reverse charge on work for VAT-registered contractors, or apply it to homeowners by mistake. Others forget that installing energy-saving materials, such as heat pumps, in homes is currently zero-rated. Keep job records showing the type of customer and the VAT rate on each invoice. Record materials used separately. If you’re unsure whether a job is in the reverse charge, ask the contractor to confirm in writing.
Frequently asked questions
I’m a CIS subcontractor. Does CIS change the VAT threshold?
No. The threshold is the same, but CIS deductions are separate from VAT.
Do I charge VAT to a landlord?
Yes. A landlord is an end user, so the reverse charge doesn’t apply.
Can I register just for VAT on materials?
No. Registration covers all of your taxable sales.
What if I went over the threshold months ago?
Register now. VAT is due from the date you should have registered.
Related: tax returns for electricians and how to register for VAT.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT for plumbers and trades. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
