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Motor trades

Accountants for Garages and Workshops

Motor Trade Accounting offers specialist accounting support for independent garages and workshops across the UK. Get help from an accountant who understands labour rates, parts margins and the way a busy workshop really runs.

Accounting that fits the way a workshop earns its money

What specialist support for a garage can include

The exact mix depends on your size and structure, but garage owners usually ask for help with these areas.

  • Labour and parts analysisSeparate reporting of labour sales, parts sales and the margin on each, so you can see the real return from every hour sold.
  • VAT returns under Making Tax DigitalDigital records and VAT returns filed through compatible software, with care over parts, labour, sublet work and any items outside the scope of VAT.
  • Year-end accounts and taxAnnual accounts for a limited company or a sole trader, with corporation tax or self assessment worked out from them.
  • Payroll for techniciansWeekly or monthly payroll, overtime and bonus pay, pension auto-enrolment duties and the reports HMRC expects each pay day.
  • Capital allowances on equipmentClaims for ramps, diagnostic machines, compressors and other workshop plant, which are treated differently from cars.
  • Bookkeeping and software setupLinking your garage management system to cloud accounting software so invoices, parts purchases and payments flow through cleanly.
  • Management informationSimple monthly or quarterly figures on sales, margins, technician efficiency and cash, so problems show up early.

What to plan before you speak to an accountant

A little preparation makes the first conversation far more useful.

Know how your garage system records work

Find out whether your job card or garage management software can export invoices and parts purchases, and which accounting packages it links to.

Gather the last full set of figures

Your most recent accounts, tax return and VAT returns show where things stand and what has been claimed before.

List the equipment you own or lease

Ramps, diagnostic kit and vans bought outright are treated differently from those on finance or lease, so a simple list with dates helps.

Think about where you want to be

Adding a bay, taking on an apprentice or moving premises all change the advice, so mention any plans early.

Good to know if you run a garage

Cars and vans are not treated the same

VAT on a van used for the business can usually be reclaimed, while VAT on a car is generally blocked unless it is used only for business. Double-cab pick-ups have been treated as cars for benefit-in-kind and capital allowances since April 2025.

Sublet work needs clear records

MOTs, bodywork or specialist jobs you pass to another business should be recorded so the cost and your mark-up are clear on both the invoice and in your books.

Cash takings must be recorded in full

Customers who pay cash still need an invoice and a record in your books. HMRC looks closely at cash-heavy trades, and gaps are hard to explain later.

Customer vehicles and insurance

Holding customers’ cars on site brings specific insurance needs. Your accountant can help you account for premiums properly, but cover itself is a question for a broker.

How it works

  1. 1

    Tell us about your garage

    Send an enquiry with a few details about your workshop, how many people work in it and what you need help with.

  2. 2

    Talk it through

    A specialist motor trade accountant gets in touch to understand your set-up, your software and the problems you want solved.

  3. 3

    Agree the support

    You get a clear proposal setting out what will be covered, how often, and what you need to provide.

  4. 4

    Get organised

    Records are moved across, software is linked up and deadlines are set, so the next year runs without surprises.

Questions garage owners ask

Can an accountant help me work out if my labour rate is right?

Yes. By splitting labour from parts and comparing sold hours with paid hours, your accountant can show what each hour really costs you and what it earns.

Should my garage be a limited company or a sole trader?

It depends on your profits, how much you draw and your plans. A specialist can model both so you can see the tax and paperwork differences before deciding.

Can I claim for my diagnostic equipment?

Equipment bought for the workshop usually qualifies for capital allowances, which reduce your taxable profit. How it is claimed depends on whether it was bought outright, on finance or leased.

Do I need to charge VAT on an MOT I sublet?

The MOT test fee is generally treated as outside the scope of VAT, but any repairs, parts or admin charges you add are not. Showing them separately on the invoice keeps the treatment clear.

What software works with garage management systems?

Most modern garage systems link to the main cloud accounting packages. Your accountant can check the link for your system before you commit.

Who will I be speaking to?

Your enquiry goes to a qualified accountant who works with motor trade businesses and understands how workshops operate.

Get your garage’s numbers working for you

Tell us a little about your workshop and we’ll arrange a call with a specialist motor trade accountant.