A skilled plumber can build a company around domestic call-outs, maintenance contracts, commercial fit-outs, heating systems or subcontract work. The trade skill is central, but profit depends on estimating, materials, callbacks, vehicle time, cash collection and tax treatment.
An Irish LTD can separate the contracting entity from the owner and make employment, supplier credit and larger contracts easier to organise. It does not replace qualifications, certification or safety duties. This guide explains both layers and where affordable formation fits.
- Common entity
- Irish LTD
- Construction work
- RCT can apply
- Employees
- PAYE required
- Formation
- From EUR240
Choose the plumbing market and scope
Separate emergency domestic work, planned maintenance, new-build subcontracting and specialist heating or gas work in the business plan. They have different response times, credit terms, compliance evidence and margins. Do not advertise regulated or specialist work until the people and registrations required for it are in place.
Model productive hours rather than charging every hour in the week. Travel, estimates, collections, supplier visits, training and callbacks consume capacity. Build van, tools, disposal, insurance, administration and warranty risk into the hourly rate or fixed quote.
Form the company that signs the jobs
The LTD should be the named contractor on quotations, customer terms, insurance, supplier accounts and subcontract agreements. It needs an Irish registered office, directors, secretary, shareholders, constitution and identity details. If moving from sole trader, transfer tools, vans, contracts and customer deposits deliberately because the company is a new legal person.
StartCompany.ie forms a straightforward Irish LTD from EUR240 with the CRO fee, Certificate of Incorporation, constitution and share certificates included. Formation is the legal starting point. Trade registrations, insurance, tax, equipment and professional advice remain separate business costs.
Understand RCT before subcontracting
Revenue's Relevant Contracts Tax regime applies to certain payments from principal contractors to subcontractors in construction. Plumbing and heating can be construction operations. RCT rates are 0%, 20% or 35%, but the principal must still notify the contract and payments through ROS even where the deduction authorisation is zero.
A plumbing company can be a subcontractor on one site and a principal contractor when it hires another contractor on another job. Determine the role contract by contract. Failure to operate RCT as a principal can create tax, interest and penalty exposure that was never included in the quote.
| Job | Possible role | Question to settle |
|---|---|---|
| Domestic repair | Direct supplier to homeowner | Normal VAT and invoice treatment |
| Developer fit-out | Subcontractor | RCT notification and VAT reverse charge |
| Company hires installer | Possible principal | Contract and payment notifications |
| Maintenance contract | Direct service provider | Scope, VAT and payment terms |
| Mixed supply | Goods and construction service | Correct contract and VAT analysis |
Configure VAT, Corporation Tax and payroll
An Irish company registers for Corporation Tax and may need VAT and PAYE. Construction services outside RCT follow normal VAT rules, while qualifying subcontract construction services can use the domestic reverse charge. One business may issue both kinds of invoice, so bookkeeping must identify the customer and contract correctly.
Register as an employer before paying directors or staff where required and report payroll in real time. Confirm employment status for labour-only arrangements; calling a worker a subcontractor does not decide the legal or tax result.
Qualifications, safety and insurance
Only undertake work for which the business has competent personnel and any necessary trade or scheme registration. Gas, electrical and certain heating work can bring separate controlled requirements. The LTD certificate is not a technical licence and should never be presented as one.
Prepare site-specific risk controls, method statements where required, manual-handling and hazardous-substance procedures. Arrange public liability, employer liability, tools, van, professional or product cover to match the work. Check that subcontractors carry adequate cover and provide current evidence.
Use quotations and job records that protect margin
A written quote should define assumptions, exclusions, access, making good, waste, materials, provisional sums, payment stages and change control. Obtain signed approval before extra work. Record photographs, test results, commissioning information, certificates and customer sign-off in one job file.
Use deposits carefully and keep enough cash to pay VAT, payroll, materials and callbacks. Large turnover does not prevent failure when a contractor finances a customer's project for months. Credit-check commercial clients and stop work under the agreed terms when overdue balances become unsafe.
Plumbing company launch checklist
A low-cost company formation helps only when the operating controls are ready for the first job. Put the tax and paperwork in place before a main contractor asks for them.
- Define services, customer groups and competence limits.
- Choose the name, directors, secretary, shares and registered office.
- Form the Irish LTD and transfer any sole-trader assets correctly.
- Register Corporation Tax, VAT, PAYE and RCT as applicable.
- Arrange insurance and trade or scheme registrations.
- Prepare quotations, terms, job sheets and change control.
- Set up supplier credit, vehicle and tool registers.
- Review margin, tax reserves and debtors every month.
A professional company without an inflated setup price
Form your plumbing LTD from EUR240
StartCompany.ie includes the CRO fee and core formation documents in the Basic package. That leaves more working capital for tools, insurance, a van and the tax systems that win and deliver real jobs.
Official sources used for this guide
- Revenue: construction industry tax obligations
- Revenue: Relevant Contracts Tax
- Revenue: VAT treatment of construction services
Rules, fees and programmes can change. Check the current official guidance and obtain advice for the company's actual circumstances before acting.