How to Set Your Day Rate in 2025 (UK Trades)

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Setting the right day rate is one of the most important decisions you’ll make in your trades business. Get it wrong and you’ll either scare off customers or watch your profit margin disappear. Get it right and you’ve got a sustainable business that actually pays you properly.

The good news? It’s not complicated. You don’t need fancy software or consultants. Just some honest maths and a realistic look at what it costs to keep your business running.

The Formula You Need to Know

Here’s the bit you’ll actually use:

(Annual costs + desired profit) ÷ billable days per year = daily rate

That’s it. Everything else flows from this.

Let’s make it real. Say you’re a plumber with £35,000 in annual costs (we’ll break this down in a minute) and you want to take home £25,000 profit. That’s:

(£35,000 + £25,000) ÷ 220 billable days = £273 per day

Now, don’t just use 365 days. You won’t be working 365 days a year. You’ve got:

Weekends (104 days)
Bank holidays (8 days)
Your annual holiday (20-25 days)
Sick days you actually need (5-8 days)
Admin, estimating and quotes (15-20 days)

That leaves you with roughly 220-230 billable days. Use 220 if you want to be conservative and build in extra breathing room.

What Costs Actually Get Included?

This is where most tradespeople undersell themselves. You’ve got real expenses:

Van costs: Depreciation, fuel, maintenance, MOT, insurance (roughly £4,000-£6,000/year for most trades)
Tools and equipment: Replacements, repairs, upgrades (£1,500-£3,000/year)
Insurance: Public liability, tools cover, van insurance (£800-£2,000/year depending on trade)
Certifications and training: CSCS cards, gas safe, electrical qualifications, renewal fees (£200-£1,000/year)
Office and admin: Phone, computer, accounting software, website (£800-£1,500/year)
Professional fees: Accountant, tax, business membership (£500-£1,000/year)
Workwear and safety kit: Boots, clothing, PPE (£300-£600/year)
Tax and National Insurance: Roughly 20-25% on top of your profit

Don’t forget to include the holidays and sick days you’ll actually take—they’re a cost because you’re not earning. If you take 25 days off, that’s roughly £6,825 in lost income at £273/day.

What Are Other Trades Charging in 2025?

Here’s what you should expect to see in the market (excludes VAT, regional variation of ±10%):

Electrician: £250-£350 per day
Plumber: £200-£300 per day
Carpenter/joiner: £200-£280 per day
General builder: £180-£250 per day
Gas engineer (registered): £250-£400 per day
Tiler: £200-£300 per day
Decorator: £150-£220 per day

These shift based on where you’re working. London and the South East typically run 15-30% higher. Rural areas might be 10-15% lower because your travel time increases but local costs are less.

When Should You Charge More Than Your Base Rate?

Your standard day rate is a baseline. You’ve got every reason to push higher in certain situations:

Emergency callouts: Add 25-50% for weekend, evening or holiday work
Specialist work: If you’re doing advanced diagnostics, high-spec installations or complex problem-solving, add 15-30%
London weighting: Add 20-30% if you’re working in London
Project management: If you’re coordinating subcontractors, add 10-20%
Warranty and guarantees: If you’re offering extended warranties, that’s worth more

Your customers understand that premium work costs more. They’d rather pay extra for reliability than get a cheap job that needs redoing.

How to Increase Your Rate Without Losing Work

You can’t just wake up one day and jump from £200 to £300. Your customers notice. Here’s how to do it properly:

Do it gradually: Increase by 5-10% every 6-12 months rather than all at once
Raise rates for new customers first: Your loyal customers might accept a smaller increase
Show the value: If you’ve added certifications, upgraded your van, or improved your systems, mention it
Track your demand: If you’re fully booked and turning work away, you’re underpriced. Raise your rates.
Be transparent: In your quote, break down what you’re charging for: time, expertise, parts, travel time

Day Rate Versus Price Per Job: When to Use Each

This is a decision that trips people up. Use day rate for:

Jobs where the scope’s unclear or variable
Diagnostic work (finding problems before you fix them)
Maintenance and repairs where time’s hard to predict
Repeat customers who like the simplicity

Use fixed pricing for:

Well-defined jobs with clear specs (boiler installation, new kitchen, rewire)
Work you do regularly and can estimate accurately
Projects where customers want certainty before they commit

Most of the work you’ll do is a mix. You might quote a fixed price for the main work but include day rates for anything unexpected that comes up. That protects you both.

Reviewing Your Rate

Don’t set your day rate and forget about it. Check it every six months against:

What competitors are charging (ring round, get some quotes)
Your actual profit margin (are you hitting your target?)
Your workload (fully booked means you’re underpriced)
Your costs (fuel, insurance, tools wear out—they get more expensive)

Your day rate isn’t set in stone. It’s a business tool you adjust to stay profitable and competitive.

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