I am a complete novice in terms of changing faucets (and DIY generally), but you have to start somewhere right?
I need to change my kitchen faucet and of course I am already getting stuck with the first step. I am trying to remove the faucet cap (the red/blue, round indicator thing) but it seems stuck. I tried to remove it with a needle and a pointed, thin knife, but I only damaged the plastic in the process. See picture. 
The second issue is, I am not sure where I can switch off the water for this faucet. It looks unlike any description on the internet under my sink.
Really appreciate any help from you more experienced people!
Cori
Best Answer
Too much for a comment, doesn't quite answer the actual question, but contains information the OP should be aware of.
Where the flexi-hose attaches to the solid pipe, the installer should have put small in-line shut-off valves [You should have one of these behind every tap in the house].
Either someone skimped at your expense, or they're not compulsory in your territory.
You'll have to track back to the next shut off - which, if you're really unlucky, is right at the point the water service enters the house [or even out in the street.]
If you shut off a long way from the tap, remember to open all the taps in the house so you don't get any surprises when you let air into the system by removing your tap unit. The pipes might bang a bit when you switch it back on as the water refills where the air was, but this should be just fine - then you run round closing all the taps again, after full flow is re-established.
Important. Switch off any water heating while you do this.
BTW, if you're absolutely certain that red/blue stopper needs to some out & you are not going to be re-using the tap, just bang it out with a small screwdriver wedged down one side & hammer.
…though I can't imagine why you'd need to take off any tap handles to get the tap out - one nut underneath, which you'll need a tap-spanner/basin wrench to get to, is all it should take.
They come in two types; "awkward to make it fit & get some leverage", or "slip & skin your knuckles". Unfortunately there's no third type that "just works";)
Well, there is a third type, but they're very awkward when you have tails out of the base of the tap. They used to be great on old fashioned taps with hard copper right to the back.