Accounting services
Payroll for garages and dealerships
Motor Trade Accounting connects garages, dealerships and motor businesses across the UK with payroll support that understands the trade. Technicians, apprentices, sales staff on commission and company vehicles, all paid and reported correctly.
Payroll in the motor trade
Running a payroll means calculating each employee's pay, deducting income tax, National Insurance and pension contributions, paying them, and reporting it all to HMRC through Real Time Information every time people are paid. Motor businesses add their own complications: sales staff on commission or bonuses, technicians on overtime, apprentices on different minimum wage rates, and company cars and vans that create taxable benefits.
Employers also have duties beyond the payslip. Every eligible worker has to be assessed and enrolled into a workplace pension, with employer contributions paid on time and a declaration of compliance made to The Pensions Regulator. Holiday pay has to reflect regular overtime and commission for many staff, and irregular-hours workers can now have holiday pay rolled up into their hourly rate if the rules are followed.
Specialist payroll support takes on the calculations, filings and deadlines, and helps with the decisions around them: how to structure commission, what a company vehicle will cost an employee in tax, and how the changes HMRC has announced for benefits will affect you.
What payroll support includes
Support can cover a single director or a full workshop and sales team.
- Pay runs and payslipsCalculating gross and net pay each week or month, including overtime, commission and bonuses, and producing payslips for every employee.
- RTI submissionsSending a Full Payment Submission to HMRC on or before each payday, and an Employer Payment Summary where it is needed.
- Auto-enrolmentAssessing workers, enrolling those who qualify, calculating contributions, handling opt-outs and keeping the declaration of compliance and re-enrolment up to date.
- Starters, leavers and statutory paySetting up new employees, producing P45s for leavers, and calculating statutory sick, maternity, paternity and other statutory payments.
- Company cars and vansWorking out benefit in kind for company cars, vans and fuel, and reporting it on P11D forms or through payrolling benefits.
- Year-end payrollIssuing P60s to employees by 31 May and filing P11D returns by 6 July where benefits are not payrolled.
- Minimum wage checksChecking pay against the National Minimum Wage and National Living Wage, including apprentice rates and deductions for tools or uniforms that can take pay below the minimum.
What to plan before moving your payroll
A smooth handover depends on having the right details to hand.
Employee details
Gather each employee's start date, tax code, National Insurance number, pay rate, hours and pension status, plus the year-to-date figures from your current payroll.
How commission and bonuses work
Write down how sales commission and workshop bonuses are calculated and when they are paid, so they are taxed and included in holiday pay correctly.
Who has a company vehicle
List every car, van or demonstrator an employee can use privately, with its list price, fuel type and CO2 figure.
Your pension provider
Have your workplace pension scheme details and login ready, so contributions keep flowing without a gap.
Good to know
Payrolling benefits
HMRC plans to make reporting of most benefits in kind through payroll mandatory from April 2027, replacing many P11D forms. It is worth preparing before the change arrives.
Double-cab pick-ups
From April 2025, double-cab pick-ups with a payload of one tonne or more are treated as cars rather than vans for benefit in kind, which can increase the tax on them.
Electric company cars
Electric cars carry much lower benefit in kind rates than petrol or diesel cars, although the rates are set to rise gradually over the next few years.
Employment Allowance
Many employers can reduce their employer National Insurance bill through the Employment Allowance. Companies where the director is the only employee paid above the secondary threshold cannot claim it.
How it works
- 1
Send an enquiry
Tell us how many people you employ, how often they are paid and who runs the payroll at the moment.
- 2
Discuss your team
A specialist goes through pay structures, commission, vehicles and pensions with you to understand what is involved.
- 3
Switch over
Employee records and year-to-date figures are moved across, ideally at the start of a tax year or a new pay period.
- 4
Every payday
You confirm hours and commission, payslips and reports come back, and HMRC and the pension provider receive what they need.
Payroll questions
When do I have to report payroll to HMRC?
A Full Payment Submission is due on or before every payday. Late submissions can lead to penalties, even if the tax is paid on time.
Does commission count towards holiday pay?
For many employees, regular commission and overtime must be reflected in at least part of their holiday pay. The rules are detailed, so check how your schemes are paid.
How is a company van taxed?
A van available for private use creates a flat-rate benefit in kind, with a separate charge if fuel is provided. Vans used only for business with limited private use may be exempt.
Do I have to put staff into a pension?
Yes. Employers must assess every worker and automatically enrol those who qualify into a workplace pension, paying employer contributions and keeping records.
Are apprentices paid a different minimum wage?
Apprentices can be paid the apprentice rate if they are under 19, or in the first year of their apprenticeship. After that they move to the rate for their age.
Who will run my payroll?
Your enquiry goes to a qualified accountant who works with motor trade businesses and runs payroll for them.
Want payroll handled properly?
Send an enquiry with the size of your team and how you pay them, and a specialist will be in touch.