VAT invoices for mobile mechanics: what you must show

When you have to register

VAT registration becomes compulsory once your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect to pass it in the next 30 days alone. For a mobile mechanic that counts everything you invoice — labour and materials — not the profit you keep.

What a full VAT invoice must show

• A sequential invoice number, unique within its series.
• Your business name, address and VAT registration number.
• The customer's name and address.
• The time of supply (tax point) and the invoice date.
• A description of the vehicle repair work supplied, per line.
• The VAT-exclusive amount, the VAT rate and the VAT amount per rate.
• The total VAT-exclusive amount and the total VAT payable in sterling.

The rate trap for mobile mechanics

Standard-rated at 20% on both labour and parts. If you buy parts on a trade account and invoice them on, remember that the full amount you invoice counts towards the £90,000 registration threshold, not just your labour.

Worked example at 20%

Net total for the job

£285.00

VAT at 20%

£57.00

Total the customer pays

£342.00

The £57.00 is never your money — you are collecting it for HMRC and paying it over on your next return.

Common questions

What vehicle details should be on a mechanic's invoice?

Make, model, registration and mileage at the time of work. It turns the invoice into a service record the owner can show a future buyer.

Should diagnostics be charged if the repair goes ahead?

That is your call, but say which on the invoice. Many mechanics show the diagnostic charge and then discount it when the repair is booked — visibly, as a line.

How long should a parts warranty be?

Twelve months or 12,000 miles is the usual standard for fitted parts. Put it on the invoice so there is no argument if the part fails.