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How to Start a Painting Business in the UK

Q: Do you need a licence to be a painter and decorator in the UK?

No. There's no legal licence required to trade as a painter and decorator in the UK. Anyone can set up, though you must meet tax, health-and-safety and consumer-protection obligations. To work on most construction sites you'll typically need a CSCS card, and some public-sector or larger commercial contracts require accreditation such as CHAS or SafeContractor. Voluntary trade-body membership (for example the Painting and Decorating Association) can help win work but isn't a legal requirement. Check the current position with HSE and your client's site rules.

Q: How do I register a painting business in the UK?

If you're a sole trader, register for Self Assessment with HMRC — you'll be issued a Unique Taxpayer Reference (UTR). If you set up a limited company, register it with Companies House. Register for the Construction Industry Scheme (CIS) if you subcontract to or for other construction businesses. Register for VAT once your taxable turnover crosses the threshold. Set up PAYE if you employ staff. This is general information — check GOV.UK and speak to an accountant.

Q: When do I have to register for VAT in the UK?

VAT registration is compulsory once your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (the threshold from April 2024, current at the time of writing), or you expect to cross it in the next 30 days. Below that you can register voluntarily. Standard-rate VAT is 20%. Note that construction work can involve the domestic reverse charge and some reduced-rate or zero-rated categories — check the current rules with HMRC or your accountant.

Q: What insurance does a painter and decorator need in the UK?

Public liability is the core cover — £1 million to £5 million is typical, with £5 million or more often required on commercial and public-sector contracts. Employers' liability is a legal requirement the moment you employ anyone (including most subcontractors treated as employees), with a minimum of £5 million cover by law. Tools and plant cover, and professional indemnity if you give specification advice, are optional. Match limits to each contract and check the current legal minimums.

Q: What is the CIS and do painters need to register?

The Construction Industry Scheme (CIS) is an HMRC scheme where contractors deduct money from a subcontractor's payments and pass it to HMRC as advance tax. If you work as a subcontractor for other construction businesses, registering means deductions are taken at 20% rather than 30%. If you pay subcontractors yourself, you must register as a contractor and operate CIS on their payments. Painting and decorating generally falls within CIS. Check your status on GOV.UK or with an accountant.

Starting a painting and decorating business in the UK needs no trade licence — but you must register with HMRC (a UTR for sole traders) or Companies House (for a limited company), likely register for the Construction Industry Scheme (CIS), carry public liability (typically £1–5 million) and, once you employ anyone, employers' liability at the legal £5 million minimum, and register for VAT once turnover exceeds £90,000. This guide is the starting checklist — verify current rules on GOV.UK.

The essentials at a glance

Requirement	What it is	Threshold / authority
Trade licence	Legal licence to work as a painter/decorator	None required; CSCS card for site access, CHAS/SafeContractor for some contracts
Business registration	Self Assessment (sole trader) or company incorporation	HMRC issues a UTR; limited companies register at Companies House
CIS	Construction Industry Scheme — tax deductions on construction payments	Register with HMRC as subcontractor and/or contractor
Public liability	Covers third-party injury or property damage	Typically £1M–£5M; £5M+ common on commercial/public work
Employers' liability	Legally required once you employ staff	Minimum £5M cover by law
VAT	Value Added Tax registration	Compulsory above £90,000 turnover (2024/25); 20% standard rate

General information, not legal or financial advice. UK tax, insurance and health-and-safety requirements change. Figures here are indicative and current at the time of writing (2026). Verify every requirement on GOV.UK, with HSE, and via HMRC and Companies House — and take advice from an accountant before you start trading.

1. Sole trader or limited company?

Most decorators start as a sole trader — quick to set up, simple to run, and you keep the profits after tax. The downside is unlimited personal liability. A limited company separates your personal assets from the business and can be more tax-efficient at higher profits, but adds accounts, filing and director duties. Some work as part of a partnership. An accountant can weigh the options against your expected turnover.

2. Register with HMRC or Companies House

As a sole trader, register for Self Assessment with HMRC; you'll get a Unique Taxpayer Reference (UTR) and file a tax return each year. If you incorporate, register the company with Companies House and file annual accounts and a confirmation statement. Either way, keep clean records of income and expenses from day one — HMRC's Making Tax Digital rules increasingly require digital record-keeping.

3. The Construction Industry Scheme (CIS)

Painting and decorating generally falls within the CIS. If you work as a subcontractor for other construction businesses, register so deductions are taken at 20% rather than 30%. If you engage subcontractors yourself, you must register as a contractor, verify them with HMRC, and make the correct deductions. Getting CIS status right protects your cash flow — check your position on GOV.UK or with an accountant.

4. Insurance

Public liability is the cover clients expect — £1–2 million is common for domestic work, £5 million or more for commercial and public-sector contracts. Employers' liability is a legal requirement the instant you employ anyone, with a statutory minimum of £5 million; not holding it can carry heavy fines. Add tools and plant cover for theft and damage, and consider professional indemnity if you advise on coatings or specification.

5. VAT and tax

Register for VAT once your taxable turnover exceeds £90,000 in a rolling 12 months (the 2024/25 threshold), or you expect to within 30 days. Standard VAT is 20%, but construction can involve the domestic reverse charge and some reduced or zero-rated work, so check how it applies to your jobs. Below the threshold, voluntary registration lets you reclaim VAT on purchases but means charging it to customers — weigh it up with your accountant.

6. Price for profit

Winning work is easy; keeping the margin is the hard part. Build your price from your real loaded labour cost — wages plus employer NI, pension and holiday — and add a margin that survives a quiet spell. Surfacely measures the job, applies your real costs and production speed, and derives a sell price that protects your margin. See painting labour rates by region and how to quote a painting job.

Related guides

FAQ

Do you need a licence to be a painter and decorator in the UK?

No — there's no legal trade licence. You must meet tax, safety and consumer obligations, and most sites need a CSCS card. Some contracts require CHAS or SafeContractor accreditation.

How do I register a painting business in the UK?

Register for Self Assessment with HMRC (sole trader, gets a UTR) or incorporate at Companies House. Register for CIS if you subcontract, and for VAT once you cross the threshold.

When do I have to register for VAT in the UK?

Once VAT-taxable turnover exceeds £90,000 in a rolling 12 months (2024/25 threshold), or you expect to within 30 days. Standard VAT is 20%.

What insurance does a painter and decorator need in the UK?

Public liability (typically £1–5 million) and, once you employ anyone, employers' liability at the legal £5 million minimum. Tools cover and professional indemnity are optional.

What is the CIS and do painters need to register?

The Construction Industry Scheme deducts tax from construction payments. Registering as a subcontractor drops deductions from 30% to 20%; if you pay subcontractors you must register as a contractor. Painting generally falls within CIS.