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Accountant for Mechanics & Motor Engineers

Tax, VAT and business support for garages, MOT bays and vehicle repair businesses

Running a garage means keeping vehicles safe, customers happy—and HMRC off your back. Between parts, labour, diagnostics, VAT and payroll, your accounts can get messy fast.

At Yorkshire Accountancy, we help mechanics, garage owners and motor engineers across the UK manage their tax, expenses and day-to-day finances. As your accountant for motor engineers, we’ll help you stay compliant, reduce your tax bill, and run a more efficient, profitable business.

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Who we support

We work with:

  • Independent garages and mechanics
  • MOT stations and vehicle testing centres
  • Vehicle repair and servicing workshops
  • Mobile mechanics and diagnostics techs
  • Motor engineers running limited companies
  • Sole traders just starting out
  • Garages with employees, subcontractors or apprentices

Whether you’re running a ramp or a van, we’ll keep your accounts on track.

Self-employed mechanic & motor engineer tax advice

Starting out on your own? We’ll make sure you’re registered correctly and not overpaying tax from day one.

Our self-employed motor engineer tax advice includes:

  • Registering with HMRC as a sole trader
  • Tracking income, including card machines and account work
  • Claiming all allowable business expenses
  • Budgeting for tax and payments on account
  • Preparing and filing accurate Self Assessments
  • Helping you go Limited when the time is right

We’ll also support mobile techs or side-hustlers balancing other work with garage time.

What expenses can motor engineers claim?

Garage work comes with serious running costs—many of which are fully deductible.

Claimable expenses include:

  • Tools and equipment (spanners, jacks, lifts, compressors, diagnostics)
  • Parts, oils, lubricants and consumables
  • Van and fuel costs (or mileage)
  • Workwear, gloves, PPE and branded uniforms
  • Insurance (public liability, motor trade, tools cover)
  • Waste disposal licences and oil recycling fees
  • Garage rent, utilities and business rates
  • Advertising, signs, website and admin software
  • Bookkeeping or accountancy support

Often-missed claims:

  • Cleaning overalls or rags at home
  • Use of home for admin, bookings or ordering
  • Software for MOT, diagnostics, garage management or payroll
  • Training, certification or trade association fees
  • Mobile phone (business use %)
  • Tool repairs, replacements or calibration
  • Snacks and hot drinks for staff if provided on-site

We’ll make sure you claim everything you’re entitled to—properly.

PAYE, apprentices and staff

Most garages employ staff, and getting PAYE wrong is a fast route to HMRC trouble.

We’ll help you:

  • Set up PAYE and register with HMRC
  • Run payroll weekly or monthly
  • Handle tax, NIC, pensions and holiday pay
  • Issue payslips and keep clean staff records
  • Understand apprentice grants or incentives
  • Avoid problems with casual or cash-in-hand labour

We also manage year-end payroll reporting and workplace pension setup via auto-enrolment.

VAT and mechanic/motor engineering businesses

Most garages go over the VAT threshold quickly due to labour and parts—so VAT is a big part of getting your tax right.

We’ll help you:

  • Register at the right time
  • Decide if Flat Rate VAT suits you (flat rate for vehicle repair is 8.5%)
  • Reclaim VAT on parts, oil, rent, fuel and tooling
  • Handle margin scheme issues (e.g. used parts)
  • Submit quarterly returns digitally
  • Avoid fines or late penalties

We’ll also make sure your prices are set correctly to stay profitable after VAT.

Going Limited for a garage business

If your profits are £40,000+, becoming a limited company could reduce your tax and protect your business.

We’ll help you:

  • Weigh up the benefits vs admin
  • Set up your Ltd Co and PAYE if needed
  • Handle salary/dividend tax planning
  • Keep on top of Companies House filing
  • Run payroll and manage director payments

We can also advise if you own your building separately and whether a separate property company makes sense.

Making Tax Digital & garage bookkeeping

If you’re VAT registered, MTD already applies. If not, it’s coming soon.

We’ll help you:

  • Set up QuickBooks or Xero (includes a free 12-month licence + training – March 2025)
  • Digitally track income (card, account, cash)
  • Record VAT and expenses in real-time
  • Submit quarterly updates
  • Monitor profitability and stock

Need something simpler? We offer a trade-friendly Google Sheets system too.

Why motor engineers choose Yorkshire Accountancy

  • We know garage life—labour, parts, VAT and all
  • We make tax easy to understand
  • We offer fixed monthly fees
  • We give fast, plain-English advice
  • We save garages money, time and hassle

Let’s tune up your business

Whether you’re under a ramp or running a multi-bay garage, we’ll keep your accounts running smoothly.

Book a free, no-pressure chat with an accountant who understands your trade.

Contact Us

Please call or email to arrange your FREE consultation for any of our services.

For complete information on our data practices, please refer to our Privacy Policy.  If you have any questions, feel free to email us at info@yorkshireaccountancy.co.uk

Meet the Team

We’re a modern, friendly and proactive accountancy service.

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