Accounting and invoicing for garages
Estimate, job, spare parts, labour, invoice: in the garage every invoice hangs on a vehicle and on parts from the wholesaler. Saldiqo writes quote, order confirmation and invoice from the same lines and keeps supplier invoices in view.
What comes up for garages and auto repair shops
Parts and labour kept apart
Customers and insurers want to see spare parts, labour and disposal separately. Every line should be traceable.
Estimate and job
Before the repair comes the estimate, afterwards the job. If the invoice differs, there are questions.
Parts from the wholesaler
Spare parts come from several suppliers with their own invoices and terms. The receipts must stay assignable to the jobs.
Fleet and business customers
Businesses with vehicles expect a collective invoice or fixed monthly invoices and pay on terms.
How Saldiqo helps
- From estimate to invoiceThe quote turns into order confirmation and invoice with the same lines, without retyping.
- Item master for parts and servicesLabour hours, flat fees and common parts you create once.
- Stage invoice for big repairsFor expensive jobs you issue a stage invoice from the quote, and the final invoice deducts it.
- Service contracts as recurring invoicesFixed monthly amounts for fleet customers are created by a recurring invoice on schedule.
- Supplier receipts and paymentsYou record wholesale receipts as expenses and bundle open invoices into a batch payment file for online banking.
Typical invoice lines
Examples that often appear on invoices in this industry. You set the prices yourself.
- Front brake pads, set
- Workshop labour, hours
- Service to manufacturer schedule, flat fee
- Disposal of waste oil and old parts
- Recovery service, flat fee
- Roadworthiness test, preparation and presentation
Tax and invoicing in the UK
What applies to invoices in the UK, in short. As of October 2026.
- VAT
- Standard rate 20 %, reduced rate 5 % and zero rate 0 %. Saldiqo calculates each invoice line with the rate you pick.
- VAT registration
- You must register once your taxable turnover passes £90,000 over any 12 months, or you expect to pass it within the next 30 days. You can deregister below £88,000. Until you are registered, your invoices show no VAT, and Saldiqo adds up your 12-month turnover for you.
- What goes on an invoice
- If you are VAT registered: your VAT number, the tax point, unit prices and the VAT total in pounds. A limited company shows its registered name on every invoice, and its company number, registered office and part of the UK on letters, order forms and the website.
- E-invoicing
- There is no mandate today. From April 2029 e-invoicing is planned for all B2B and B2G sales that carry VAT, through Peppol. The exact date and standard are not yet in law, and the government’s roadmap follows with the Budget on 28 October 2026.
- VAT returns
- VAT returns go to HMRC through Making Tax Digital, usually quarterly, due one month and seven days after the period. Saldiqo shows sales and VAT per rate and exports CSV. It does not submit to HMRC, and for Making Tax Digital you need software recognised by HMRC.
- Record keeping
- Keep VAT records for 6 years.
- Late payment
- Statutory interest on late business payments is the Bank Rate (3.75 % in the second half of 2026) plus 8 points, so 11.75 %. On top comes fixed compensation of £40, £70 or £100, depending on the amount owed (under £1,000, from £1,000, from £10,000). Consumers have no statutory interest.
- Getting paid
- Your sort code and account number are on every invoice. Customers pay by Faster Payments or Bacs, and banks check the account name with Confirmation of Payee. There is no QR standard in the UK.
Frequently asked questions
Can I show parts and labour as separate lines?
Yes. You create them as items and add them individually to the invoice, each with its own tax rate.
Can I bill used cars under a margin scheme?
No. Saldiqo does not know the margin scheme. For repairs, parts, accessories and services Saldiqo fits.
How do I keep open invoices in view?
After the bank statement you see which invoices are paid. For the rest you send a payment reminder with one click.
Do garages and auto repair shops in the UK have to charge VAT?
Only once they are VAT registered. Registration is required when taxable turnover passes £90,000 over any 12 months, or is expected to within the next 30 days. Below that you may register voluntarily. If you are not registered, you must not show VAT on your invoices.
Do garages and auto repair shops in the UK need e-invoicing?
Not today. A mandate for B2B and B2G sales with VAT is planned from April 2029, and the details were still open as of October 2026. You can keep sending PDF invoices for now.
How long should garages and auto repair shops keep invoices?
Keep VAT records for 6 years. You can store receipts digitally in Saldiqo. The legal duty to keep records stays with you.
Try Saldiqo for free
Write invoices, match payments, collect receipts and send reminders: free and without a trial period.
Start for freeThis page for other countries
More industries
As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.