Starting a gardening business? Here's what you need to know 

You may know your hydrangeas from your hollyhocks, but how clued up are you on the different company structures open to professional gardeners?

If your gardening business is going to flourish, you’ll need to pick the best setup for you, and meet all the business and legal requirements that come with it.

From the company types to insurance, in this article, we’ll talk you through the two business structures most commonly used by UK gardening businesses and landscaping businesses, discuss the obligations that come with them, and their financial pros and cons.

In short, everything you need to know on how to start a gardening business.

Key Takeaways

• Starting a gardening business begins with choosing a structure, most UK gardeners operate either as a limited company or as a sole trader, and this decision shapes your responsibilities, tax and long term growth.
• Your customer profile should guide your setup, commercial clients and larger contracts usually suit a limited company, while smaller domestic jobs and flexible working often fit better with a sole trader gardening business.
• Payments and insurance need to match how you operate, limited companies must register for PAYE to pay employees, and both limited companies and sole traders should consider employers’ liability insurance, public liability insurance and equipment insurance.
• Sole traders benefit from simpler registration and accounting, you register with HMRC and file a self assessment tax return, while limited company directors can take a mix of salary and dividends and gain the protection of limited liability.
• A limited company can be more financially efficient and can help separate your personal finances from the business, while a sole trader setup keeps admin light and can be a practical way to test and grow a new gardening business.
• Once you decide whether to form a limited company or register as a sole trader, you need to complete the formal setup and can use company formation services to register your business, handle filings and get help with VAT, accountants and more.

Forming a gardening business: which type of company is best?

Typically, British gardening businesses will operate either as a limited company, or as a sole trader (aka self employed gardener). But what exactly does this mean?

Limited companies tend to employ staff and operate on a relatively large scale, whereas sole traders usually work alone or with help from temporary contractors.

As we’ll see, your choice between these options should be based on which types of client your business will serve, which insurances and payment systems you are happy to put in place, and ultimately, which structure will be most beneficial to your business.

Customer profile

Who will you be gardening for? If you plan on working for commercial clients like hotels, business parks and stately homes, you’ll most probably need to employ multiple staff on a permanent basis — in which case you should operate as a limited company.

You may prefer to work on a smaller scale, serving private clients such as homeowners and small businesses. In this case, you may prefer to operate as a sole trader.

Being a sole trader doesn’t necessarily mean doing all the work alone, as you’ll have the option to engage subcontractors to help when necessary. Bear in mind that subcontractors should be dealt with as a fellow sole trader, not an employee. If the nature of a subcontractor’s work for you is too similar to regular employment (e.g. full-time hours at set times), they may be entitled to the rights of an employee.

Limited companies too can use workers on temporary contracts, which can be a valuable option, given the potential for bad weather and short winter days to slash the number of hours gardeners can work.

Payments and insurance

Your choice of business type will also affect how you pay staff/contractors, and which types of insurance you need to take out.

Limited companies need to register to operate pay-as-you-earn (PAYE), which is the system used by HMRC to record employee earnings and work out how much tax they owe. The easiest way to do this is via HMRC’s PAYE Online service.

If you’re a sole trader using subcontractors who are working directly under your supervision, direction or control (SDC), you may also need to set up PAYE.

If there’s going to be more than just yourself on your team, you’ll also need to take out employer’s liability insurance, which covers compensation claims made by employees who’ve become ill or sustained an injury as a result of their work.

Another essential if you’re working somewhere with public access is public liability insurance, which covers against claims by members of the public who have been injured or had their property damaged as a result of your activities.

Finally, it’s highly recommended to take out equipment insurance. From scarifiers and cultivators to hedge trimmers and ride-on lawnmowers, the tools of a gardener’s trade are often expensive. This means equipment damage and theft can be major setbacks to a gardening business — particularly one that’s just starting out. Equipment cover can take the sting out of these challenging situations.

Not only could each of these insurance types one day rescue your business, they may also be a prerequisite for getting work, as many clients — especially corporate ones — will only engage fully insured gardeners.

Compatibility with your business

It’s important to remember though that the type of company type you choose will directly affect your business. So with this in mind, which option makes better business sense: sole trader or limited company?

Most gardening businesses will find that forming a limited company is the more financially advantageous option for the long-term, whereas operating as a sole trader is the better route for keeping your administrative and financial responsibilities to a minimum.

Limited company directors generally take a small salary and receive the rest of their pay in the form of dividends, which are not subject to the National Insurance Contributions, whereas sole traders must pay in addition to their income tax. What’s more, limited companies benefit from limited liability — which means directors are not held personally liable for the business’ losses if it runs into difficulties.  

Working as a sole trader, meanwhile, is nice and simple from a formation and accounting perspective. All you’ll need to do is register as a sole trader with HMRC, then submit a yearly tax return (payments are now made twice-yearly).

What next?

Once you decide which company type to form as, you actually need to do it. This can be a time-consuming process though, so we’re on hand to help. Whether you’re registering as a limited company or sole trader, or need to register for VAT, acquire an accountant, and more, we’ve got a number of packages to suit your company registration needs. 

Register a company now

FAQs

Do I need to register my gardening business as a sole trader or a limited company?

You can run a gardening business as either a sole trader or a limited company. Sole trader registration is simpler and suits smaller domestic work, while a limited company offers more protection and can look more professional for commercial contracts. Your choice will affect how you pay tax, manage accounts and grow the business.

How do I register as a sole trader for my gardening business?

You register as a sole trader through HMRC using the self assessment system. You provide your personal information, outline what your business does and file a tax return every year. This option keeps admin light, which makes it appealing if you are starting small or offering gardening services part time.

How do I set up a limited company for a gardening business?

You set up a limited company by registering with Companies House. You will need a company name, a registered office address and at least one director and shareholder. Once formed, you must file accounts and confirmation statements each year. Many gardening businesses choose this route when they want limited liability or want to appear more established.

Do I need insurance for my gardening business?

Most gardening businesses need at least public liability insurance, because it protects you if you accidentally damage property or injure someone while working. If you employ staff, employers’ liability insurance is a legal requirement. You may also want tool and equipment insurance to cover damage or theft of essential gardening machinery.

What equipment do I need to start a gardening business?

Most gardeners begin with basic tools such as a lawnmower, hedge trimmer, strimmer, hand tools and safety gear. As your gardening business grows, you may add additional equipment like pressure washers or specialist cutting tools. Your equipment needs depend on the type of clients you serve and the services you want to offer.

How do gardeners get paid when running their own business?

Sole traders get paid directly by clients and keep clear records for tax purposes. Limited companies pay employees through PAYE, while company directors can take a salary and dividends. Whichever structure you choose, it is important to keep business income separate from personal finances and maintain accurate bookkeeping.

What skills or qualifications do I need to start a gardening business?

You do not need formal qualifications to start a gardening business, but practical skills, plant knowledge and experience with tools are helpful. Some gardeners take short courses in horticulture or garden maintenance to build confidence. Good customer service, time management and reliability are just as important when working with clients.

How much can I earn running a gardening business?

Earnings vary depending on location, experience, the services you offer and whether you target domestic or commercial work. Many gardeners charge hourly rates, while others offer fixed-price jobs. As your business grows, you can increase earnings by taking on regular maintenance contracts or expanding into larger projects.