Almost a third (28%) of plumbers are not confident in managing their taxes, according to new research undertaken by Wavin. The survey, conducted as part of the company's 'Behind the Pipes' campaign, has found a significant rise in sole traders and younger plumbers lacking confidence in managing their taxes, with four in ten (43%) plumbers who work alone said they lacked confidence.
The findings follow an increase in national insurance contributions for employers which came into effect in April, as well as a string of business and personal tax changes in recent years. Almost half (46%) of plumbers said financial management, such as tax guidance and pricing strategies, was the business support they would find the most useful from the government and financial institutions.
The wider research also pulls out some interesting insights - whilst client communication is the area plumbers were most confident in (83%), a number are still lacking confidence in other areas of their business. As the cost-of-living crisis continues for many, one in five (20%) are worried about pricing, while the same proportion aren't clear on the best approach for marketing their businesses.
Plumbers also expressed their view on what tax changes would help their business. Almost half (48%) said reduced VAT on materials would make the most difference. Meanwhile almost four in ten (39%) said increased tax relief for tools and simplified tax processes would be helpful changes by the government.
Dan Scott, Vice President of Northern Europe at Wavin, comments: "These findings reveal plumbers are feeling the burden of major changes in the tax system and an unprecedented cost of living crisis. Given some of the economic turmoil in recent years, it is no surprise to see some plumbers wanting to see a simplified tax system.
"Sole traders in particular face big challenges ahead, as they juggle client demands and business finances in economically uncertain times. It is vital plumbers have access to business support, especially those at the start of their career or too busy with client work. Those with experience in the industry can also offer vital support and advice to fellow plumbers.
"Overall, plumbers largely continue to be entrepreneurial and confident, but financial challenges still remain for many."
