Funeral Directors: Costs, Margins and Benchmarks

The ONS counted 2,220 funeral businesses registered for VAT or PAYE in 2024, with combined turnover of £2.3bn. The class covers funeral directors, crematoria and cemeteries.

The figures

Source: ONS Annual Business Survey, 2024 results (published 26 May 2026). It covers businesses registered for VAT or PAYE, so the smallest sole traders are not included. Averages are pulled up by the largest firms. For sole traders and partnerships, the owners’ own pay is not in staff costs: it comes out of what is left.

How it has changed since 2019

Funeral and related activities: turnover rose 25% between 2019 and 2024, against a 24% rise in consumer prices, so it roughly kept pace with inflation. The number of businesses rose 13%. Staff costs went from 34.0% to 34.5% of turnover, and what was left after staff and bought-in costs went from 23.1% to 18.6%.

The share of turnover left after staff and bought-in costs is lower than it was in 2019, even though the number of businesses grew.

What this means for a funeral business

• Separate your fees from disbursements. Third-party costs paid on a family's behalf, such as crematorium fees, are bought-in costs that pass straight through. Look at your margin on your own services separately.
• Out-of-hours cover is expensive. Collections at any hour mean on-call payments or overtime. Track what out-of-hours cover costs each month.
• Vehicles and premises are fixed costs. Hearses, limousines and a chapel of rest cost the same whether you arrange ten funerals a month or thirty. Know how many you need to cover them.
• Review bought-in services. Coffins, flowers, printing and transport are regular purchases worth retendering.

Compare your business

Guides that fit this trade

• Overtime cost: the real cost of on-call and out-of-hours work.
• Break-even point: how many funerals cover your fixed costs.
• Payback, ROI and NPV: judging a new vehicle or premises.