Bidmio — ERP for trades, construction and service

    Will an employed bricklayer pay off for you?

    Your first employee or apprentice is the biggest step for a sole trader. See how much they need to bill to cover wages, on-costs, a van and your own time managing them, what you earn before and after tax, and when the start-up costs are paid back. UK figures for 2026/27.

    2026/27 tax year

    A first employed bricklayer on £16.54 an hour before tax has to be billed at least £35 an hour excl. VAT at 85% billable time before they have earned back their wages, on-costs, the van and your time managing them.

    Step 1 of 3 · Employee

    GBP

    Apprentice: what you pay now.

    GBP

    What the customer pays per hour the employee works.

    Holiday pay, employer's National Insurance after the Employment Allowance, pension, Statutory Sick Pay, insurance, kit and van are costed as in the employee check.

    The employee needs to bill at least

    84 %of working time

    32.6 hours a week out of 39

    Profit a year before tax

    £941

    After tax

    £696

    As a sole trader on top of a typical profit from the rate calculator: income tax and Class 4 NICs on the last pounds.

    The start-up costs of £5,000 are earned back after

    about 63.8 months

    Hourly rate that breaks even at 85% billable time
    £35/hr
    The employee costs a year
    £47,280
    Your management time a year
    £4,454
    Turnover a year excl. VAT
    £52,675

    All amounts excl. VAT.

    Guide figures only, errors excepted and without guarantee. The numbers show what a healthy, profitable business needs.

    Reality

    Your body is your most important tool, and you can't buy a new one

    Being a tradesperson is hard physical work. Knees, back and shoulders do not last 50 years on ladders and scaffolding, and nobody pays you when they say stop. Your rate has to pay for that while you still can.

    Do the maths: to stop at 63 instead of 68 you have to fund 5 years without pay. At £2,000 a month that is £120,000 before tax and inflation, and the State Pension, at most £241.30 a week, does not start until 68. That money only comes from one place: your rate in the years your body can still do the work.

    Underpricing is not the way to a good life. Every hour you sell too cheaply, you pay for later with your body, your pension and your time off.

    Where do the numbers come from?

    Every number in the check is either an official UK rate or an estimate that we label as one. Open a field to see why, with an example from real life.

    Hourly wage before tax

    The starting point is the same as in the employee check: the ONS median basic hourly pay for the trade (£15.91 to £19.02 in ASHE 2025), and the £8.00 apprentice minimum wage. Holiday pay, employer's National Insurance, pension, Statutory Sick Pay, insurance, kit and van are added exactly as in the employee check.

    Real life: A good tradesperson coming from a bigger firm often expects £1 to £2 an hour more than your first thought. £1.50 more an hour costs you about £3,600 a year once holiday pay, National Insurance and pension are added.

    Source

    Hourly rate for the employee

    What the customer pays per hour the employee works, excl. VAT. £35 for a tradesperson is the same starting point as "your rate today" in the rate calculator, and £22 for an apprentice is the same as in the employee check. Both are Bidmio's estimates, so enter your own prices.

    Real life: Many charge the same for the employee as for themselves to keep it simple. But charge £30 for an employee who costs you £32 per billable hour and you lose money on every hour they work.

    Bidmio's estimate from typical figures. Change it to your own.

    Billable time

    The share of the employee's working time you can send a bill for. Holiday, bank holidays, sickness and college weeks are already taken off. The starting point is Bidmio's estimate from the employee check: 85% for a tradesperson and 75% for an apprentice. It is the most important dial: break-even shows how low you can go.

    Real life: If your employee spends half a day a week waiting for materials or for you to show them the next job, 10% of the billable time is gone, and a £5,000 profit can turn into a loss.

    Bidmio's estimate from typical figures. Change it to your own.

    Your extra management time

    With the first employee you become an employer: you register with HMRC and run PAYE payroll, check their right to work, give a written statement of terms on the first day, set up a workplace pension, and plan, train and check the work. 2 hours a week is Bidmio's estimate, costed at the value of your own hour.

    Real life: On Monday morning your employee needs to know where to go, what to pick up and what the customer agreed. If they ring three times a day from site, that is easily an hour a week you are not billing.

    Source

    Value of your own hour

    An hour spent managing is an hour you are not billing. The starting point is the rate the rate calculator works out for your trade with £2,600 a month take-home pay. If you only do the admin in the evenings, you can set a lower value.

    Real life: Two hours of management a week at £44 is about £4,000 a year: often as much as a first employee earns a painter and decorator in profit.

    Source

    Show 6 more explanations
    Tools and kit at the start

    Personal tools, PPE and workwear that have to be bought before the employee can start. Ongoing replacement is already in the yearly cost. £1,500 for a tradesperson and £600 for an apprentice are Bidmio's estimates excl. VAT.

    Real life: An extra set of cordless tools with batteries, a ladder and safety boots easily cost £1,000 to £2,000 excl. VAT before the first hour is billed.

    Bidmio's estimate from typical figures. Change it to your own.

    Van deposit at the start

    The deposit or initial lease rental, racking and signwriting you pay before the van is on the road. The van's monthly running cost is already in the yearly cost from the van check, so this is about cash flow. £3,000 is Bidmio's estimate excl. VAT. An apprentice usually travels in your van.

    Real life: A leased van often needs three to six months' rental up front, with racking and signwriting on top. The money has to be in the account before the employee has billed their first hour.

    Bidmio's estimate from typical figures. Change it to your own.

    Recruitment

    A free advert, a paid job board or an agency, and your time on interviews and trial days. £500 for a tradesperson and £200 for an apprentice are Bidmio's estimates.

    Real life: Three interviews and a trial day easily take a full working day of your time. At your rate that is over £350, even when the advert is free.

    Bidmio's estimate from typical figures. Change it to your own.

    Quote hit rate

    The share of your quotes the customer says yes to. It varies a lot between trades and customers, and homeowners often get three quotes. 25% is Bidmio's estimate. Look in your own inbox: how many of your last 10 quotes became a job?

    Real life: With a hit rate of 25% you send 8 quotes to win 2 jobs. If the employee needs 2 more jobs a month, that is about 8 more quotes.

    Bidmio's estimate from typical figures. Change it to your own.

    Hours per quote

    Pricing visit, driving, measuring up, working it out and writing the quote. 1.5 hours is Bidmio's estimate for an ordinary job; big jobs take much longer.

    Real life: A visit 20 minutes away, half an hour with the customer and half an hour at the kitchen table in the evening is already 1.5 hours for one quote.

    Bidmio's estimate from typical figures. Change it to your own.

    Employment Allowance

    The Employment Allowance takes up to £10,500 a year off your employer's National Insurance bill in 2026/27, which covers it completely for about two employees on typical trade wages. Apprentices under 25 carry no employer's NICs up to £50,270 anyway. It is not available to a limited company whose only employee is the director.

    Real life: A plumber on £18 an hour carries about £4,600 a year of employer's National Insurance; with the Employment Allowance the firm pays none of it.

    Source

    All sources

    2026/27 tax year

    Rates change every tax year on 6 April, and some at the Budget. We update the figures once the new rates are published, but always check your own numbers with your accountant.

    When does it pay to take on the first employee?

    When you can bill their hours at a price that covers wages, holiday pay, pension, insurance, a van and your own time managing them. With typical UK figures an employed tradesperson needs to be billed 80 to 90% of their working time at £35 an hour excl. VAT, which leaves almost no room for quiet weeks. That is why many firms charge more for an employee's hour. If you do not have the work, they make a loss.

    What is break-even for an employee?

    Break-even is the share of working time the employee has to bill before the turnover covers every cost. Below break-even the firm loses money every week, above it the firm makes money. The calculator shows it as a percentage and in hours a week.

    Is an apprentice cheaper than a tradesperson?

    An apprentice costs less in wages (from £8.00 an hour in 2026/27), carries no employer's National Insurance under 25, and in England the government pays the training for 16 to 24-year-olds at employers who do not pay the levy, with a £1,000 incentive for 16 to 18-year-olds and, for new apprentices aged 16 to 24 starting from 1 October 2026, a £2,000 hiring payment. In return the apprentice is at college part of the year, is billed at a lower rate and needs more of your time. The gain is that you train your next tradesperson.

    Why do you count my own time?

    The first employee costs your time too: payroll, planning, training and checking the work. If you spend two hours a week on it, those are hours you do not bill yourself. The calculator costs them at your rate from the rate calculator. Set the hours to 0 if you only do it in the evenings.

    What do I need to do before I take someone on?

    Check their right to work in the UK, register as an employer with HMRC and run payroll through PAYE from the first payday, take out employers' liability insurance from day one, give a written statement of the main terms on the first day, and set up a workplace pension for auto-enrolment.

    Do you store my numbers?

    No. Everything is calculated in your browser and nothing is sent to a server. The share link only contains the employee type, wage, rate, billable time and your management hours.

    Disclaimer

    All calculations are a guide only and may contain errors. Bidmio gives no guarantee for the result, and the calculation is not tax, accounting or legal advice. The figures show what it takes to run a healthy, profitable business on the assumptions you entered and typical UK rates for 2026/27. Your own situation may differ, so always check the figures with your accountant before making decisions.