Introduction
If you’re a self-employed cleaner in the UK, you’re already managing your own time, supplies, transport, and finances. One often overlooked area of cost, however, is energy usage. Whether you work from home, operate a mobile cleaning business, or use specialised electrical equipment, energy costs can quickly add up and impact your bottom line.
Understanding how energy rates for self-employed cleaners are structured — and how you can manage and reduce those expenses — is key to running a profitable and sustainable business. This guide will walk you through everything you need to know, from average energy rates to tax deductions and smart energy-saving practices.
How Do Energy Costs Affect Self-Employed Cleaners?
Energy usage can look very different depending on how your cleaning business is set up. For instance, if you run a domestic cleaning service and launder towels, uniforms, or cleaning cloths at home, you’re likely consuming more electricity and gas than someone who simply travels to clients’ homes with supplies in hand.
Even if you’re not using energy-intensive equipment on-site, there are hidden energy demands that come with being self-employed. This might include charging vacuum cleaners or battery-powered tools, running a home office, or even increased heating and lighting costs due to spending more hours at home during work hours.
While these costs may seem small on their own, over time they contribute significantly to your overheads. Being aware of your usage and categorising energy as a business expense where applicable can make a real financial difference.
What Are the Average Energy Rates for Small Businesses in the UK?
In the UK, energy providers offer different tariffs depending on whether the user is domestic or commercial. Self-employed individuals — particularly those operating a sole trader business from home — often find themselves in a grey area, unsure of which category they fit into.
For clarity, self-employed cleaners who work primarily from home generally stick with domestic energy tariffs, although some may switch to a commercial plan if their energy usage is substantially higher. Those who rent a separate unit or premises, even something as simple as a small office or equipment storage facility, are often eligible for commercial energy plans.
As of early 2025, average annual energy costs are as follows:
Business Type | Electricity Usage (kWh/year) | Approx. Annual Cost |
---|---|---|
Micro Business | 5,000 – 15,000 | £2,600 – £3,500 |
Small Business | 15,000 – 30,000 | £4,500 – £5,600 |
Medium Business | 30,000 – 50,000 | £6,000 – £9,000 |
As a self-employed cleaner, you’re most likely to fall into the micro business category, especially if you’re primarily mobile and not operating industrial equipment.
Can You Deduct Energy Expenses from Your Taxes?
Yes, and this is one of the biggest financial advantages of tracking your energy usage. The UK tax system allows self-employed individuals to claim part of their energy bills as a business expense, either by using simplified flat rates or actual calculations based on usage.
Simplified Expenses Method
This method is ideal if you work from home and want an easy way to claim expenses without doing complex calculations. HMRC offers a flat-rate expense system based on the number of hours you work from home each month. For instance:
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25 to 50 hours/month = £10 claimable
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51 to 100 hours/month = £18 claimable
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101+ hours/month = £26 claimable
This amount includes a portion of household running costs like gas, electricity, and water.
Actual Costs Method
If you want to claim more accurately (especially if your energy use is higher), you can calculate the percentage of your home used for business. For example, if you use one out of five rooms solely for work and are at home during business hours, you can claim 20% of your utility bills as business expenses. This method is more time-consuming but can lead to greater savings if your energy use is significant.
Remember to keep all bills and records for at least five years in case HMRC requires documentation.
How Can You Reduce Your Energy Costs as a Cleaner?
Keeping energy costs low isn’t just good for your wallet — it’s also more sustainable and makes your business more competitive. Here are several practical strategies:
Use Energy-Efficient Appliances
If you’re using appliances like carpet cleaners, steam cleaners, or washing machines regularly, invest in energy-efficient models. Look for those with high energy ratings (such as A++ or A+++). They may cost more upfront but will save you more over time in electricity usage.
Plan Work Around Cheaper Energy Hours
If you’re on a time-of-use tariff (such as Economy 7 or Economy 10), electricity is cheaper during off-peak hours — often overnight or mid-afternoon. If you launder equipment or recharge tools, consider scheduling these tasks during those windows to lower your energy bills.
Regular Maintenance of Equipment
Regular servicing of vacuums, polishers, or other gear helps them run more efficiently, using less energy while delivering better performance. Dusty filters or overworked motors can increase consumption and shorten equipment lifespan.
Monitor and Manage Usage
Smart meters allow you to track your energy usage in real time. By understanding your consumption patterns, you can identify which appliances or routines are consuming the most electricity and take steps to reduce waste.
Compare and Switch Suppliers
Energy rates can vary drastically between suppliers, and loyalty doesn’t always pay. Use business energy comparison websites to review your current tariff and switch if better deals are available. Some suppliers even offer tailored packages for sole traders or small business owners.
Are There Special Energy Tariffs for Self-Employed Cleaners?
While energy suppliers don’t usually advertise specific plans for “self-employed cleaners,” they do offer tariffs designed for micro and small businesses. These can sometimes be more cost-effective than domestic tariffs if your business use is relatively high.
Here’s a quick overview of the most common tariff types:
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Fixed-Rate Tariffs: You pay a fixed amount per unit for a set period (usually 12–36 months), which protects you from price hikes and offers predictability.
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Variable-Rate Tariffs: Prices move up or down based on the market. These can be risky during high-inflation periods but offer savings when wholesale prices drop.
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Deemed Rates: If you haven’t negotiated a contract with your supplier, you’re likely paying out-of-contract deemed rates, which are usually among the most expensive. It’s advisable to switch or negotiate as soon as possible.
If you’re uncertain whether you qualify for a business tariff, speak to energy providers directly. Many offer guidance based on your usage, setup, and location.
Conclusion
When you’re self-employed, every penny counts — and energy rates for self-employed cleaners are no exception. By understanding how your energy is used, choosing the right tariff, claiming eligible tax deductions, and actively managing consumption, you can make your business more cost-effective and sustainable.
Running a cleaning business comes with its challenges, but energy bills shouldn’t be a mystery. With the right approach and a little proactive planning, you can turn one of your biggest operating costs into an area of savings and efficiency.
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