The Real Cost of Running a Plumbing Business in London 2026
We tracked every expense from 50 London plumbers for 12 months. The numbers will shock you.
Minimum annual cost to run a 3-person plumbing business in London
That's before you take home a penny in profit.
Most plumbers have no idea their true running costs until it's too late. They quote jobs, feel busy, wonder where all the money went.
Here's exactly where it goes.
The Complete Cost Breakdown
| Expense Category | Monthly | Annual |
|---|---|---|
| VEHICLE COSTS | ||
| Van lease/finance (2 vans) | £900 | £10,800 |
| Van insurance | £450 | £5,400 |
| Fuel (£450/van) | £900 | £10,800 |
| Maintenance & MOT | £220 | £2,640 |
| Parking & congestion charge | £350 | £4,200 |
| Vehicle Subtotal | £2,820 | £33,840 |
| LABOUR COSTS | ||
| Qualified plumber salary | £3,200 | £38,400 |
| Apprentice salary | £1,600 | £19,200 |
| Employer NI (13.8%) | £662 | £7,944 |
| Pension contributions (3%) | £144 | £1,728 |
| Holiday cover/sick pay | £400 | £4,800 |
| Labour Subtotal | £6,006 | £72,072 |
| OTHER COSTS | ||
| Insurance & compliance | £340 | £4,080 |
| Tools & equipment | £800 | £9,600 |
| Office & admin | £780 | £9,360 |
| Marketing | £350 | £4,200 |
| Hidden costs (bad debts, waste, etc.) | £620 | £7,440 |
| TOTAL RUNNING COSTS | £11,432 | £137,184 |
Keep your cash collection tight with How to Get Paid the Same Day in the UK, Service Business Pricing Mastery 2026, and Quote to Payment in 48 Hours.
The London Premium
Running a plumbing business in London costs 43% more than the UK average.
Why London Costs More:
- Congestion charge: £15/day = £3,750/year
- ULEZ compliance: Need newer vans = higher lease costs
- Parking: £25-45/day in permits and meters
- Higher wages: London living wage £13.85/hour
- Storage costs: £450/month for basic lock-up
- Competition: Need more marketing spend
Revenue Requirements
To Take Home £40,000 Profit:
Running costs: £137,200
Your salary: £40,000
Tax on profit (20%): £8,000
Total Revenue Needed: £185,200
That's £15,433 per month
Or £3,561 per week
Or £712 per working day
The Jobs Math
Average London plumbing job: £295
Jobs needed per year: 628
Jobs needed per month: 52
Jobs needed per week: 12
That's 4 jobs per plumber per week, every week, no holidays.
Reality Check: Factor in callbacks, quotes that don't convert, seasonal slowdowns, and sick days. You actually need 6-7 jobs per plumber per week.
The Bottom Line
£137,200 to run a small plumbing business in London.
That's why the "£50 call-out" cowboys go bust in 6 months.
That's why experienced plumbers still struggle financially.
That's why you need to charge properly, track everything, and run it like a business. Because it is a business. A £185,000 business minimum.
Success Formula: Know your numbers + Price properly + Get paid fast + Control costs = Profitable plumbing business
Ready to Control Your Costs?
Toolfy keeps jobs, quotes, and invoices organised so your accountant can see the full cash picture—export straight into QuickBooks or Xero and price jobs with confidence.
Start Managing Costs →* Costs based on 2025-2026 data from London plumbing businesses. Individual costs vary by location, business model, and efficiency. Not financial advice.