Motor trades
Accountants for Tyre and Exhaust Centres
Motor Trade Accounting offers specialist accounting support for tyre, exhaust and fast-fit centres across the UK. Get help with seasonal stock, disposal costs, fleet accounts and the margins on every tyre you fit.
Accounting for high-volume, low-margin fitting work
Tyre and fast-fit centres sell large volumes of products at tight margins, with fitting, balancing, valves and disposal charges added on top. A small slip in buying price, a supplier rebate that is not claimed or a disposal charge that is not passed on can wipe out the profit on a set of tyres. A specialist motor trade accountant helps you see margin by product and by job, not just in total.
Stock is the other big question. Tyre centres carry a wide range of sizes and brands, and demand shifts with the seasons, from winter tyres to summer peaks. Holding too much stock ties up cash, while holding too little loses sales to the centre down the road. Accurate stock records and valuation at the year end are essential.
Many tyre businesses also supply fleets, leasing companies or mobile fitting customers on account, which brings credit control, rebate arrangements and sometimes complex invoicing. Good accounting keeps all of this visible so you can decide which work to chase.
What specialist support for a tyre centre can include
Support is shaped around your product range, your customers and how you fit.
- Margin by productReporting margins on tyres, exhausts, batteries and other fast-fit work so you know which lines carry the business.
- Stock records and valuationReconciling stock counts with your books and valuing slow-moving sizes realistically at the year end.
- Supplier rebatesTracking rebates and bonuses from suppliers so they are claimed and recorded in the right period.
- Fleet and account customersCredit control, statements and debtor reporting for fleet, leasing and trade accounts.
- Disposal and environmental costsRecording tyre disposal and waste costs and checking that disposal charges to customers cover them.
- VAT returnsDigital VAT records and returns under Making Tax Digital, linked to your point of sale or tyre management system.
- Year-end accounts and taxAnnual accounts and tax returns, with capital allowances on tyre machines, balancers and mobile fitting vans.
What to plan before you speak to an accountant
Gather these to get the most from the first conversation.
Your latest stock report
A current stock list by size and brand, ideally with cost prices, shows how much cash is tied up.
Supplier terms
Note your main suppliers, payment terms and any rebate or bonus arrangements.
Your account customers
List fleet, leasing and trade customers, how they pay and any that are slow to settle.
Mobile fitting plans
If you run or plan mobile fitting vans, mention it, as vans, equipment and fuel all affect your costs and tax.
Good to know if you run a tyre centre
Seasonal stock affects cash
Buying ahead for winter or summer demand can put pressure on cash. A forecast helps you plan stock purchases without running short.
Disposal costs add up
Licensed waste carriers charge to collect used tyres. Recording these costs shows whether the disposal fee you charge covers them.
Rebates belong in the right period
Supplier rebates earned in one year but paid in the next should be recorded in the year they were earned for an accurate profit figure.
Mobile fitting vans and VAT
VAT on a van used for the business can usually be reclaimed, and vans generally qualify for capital allowances, unlike cars.
How it works
- 1
Tell us about your centre
Send an enquiry about your products, customers and whether you offer mobile fitting.
- 2
Speak to a specialist
An accountant who understands fast-fit work gets in touch to look at margins, stock and cashflow.
- 3
Agree the plan
You get a clear proposal covering bookkeeping, VAT, reporting and year-end work.
- 4
Ongoing figures
Regular reporting on margins, stock and debtors helps you buy and price with confidence.
Questions tyre centre owners ask
How do I know which tyres make me money?
By recording margin by brand, size and job type rather than in total. Your accountant can set up reporting that shows this clearly.
How should I value old stock at the year end?
Stock is valued at the lower of cost and what it can realistically sell for, so slow-moving sizes may need writing down.
Can I reclaim VAT on a mobile fitting van?
VAT on a van used for the business can usually be reclaimed, and the van will generally qualify for capital allowances.
Are supplier rebates taxable?
Yes, rebates are part of your income or reduce your purchase costs, and they need recording in the right period.
How can I manage cash through seasonal peaks?
A cashflow forecast that includes stock buying, supplier terms and expected sales helps you plan for busy and quiet months.
Who handles my enquiry?
It goes to a qualified accountant who works with motor trade businesses, including tyre and fast-fit centres.
Get a clear view of your margins and stock
Tell us about your tyre centre and we’ll arrange a call with a specialist motor trade accountant.