Starting up a car repair shop?

[Nobby]

Right looking for a bit of help really. Me and my brother (jordyznova) were told of being made redundant from our garage and it eventulally closes on friday. Since then ive got another job at an engine rebuilders but im not really happy as i basucakky ran my old work and he hasnt got a job yet. Im a fully qualified mechanic and my brother is half way through is level 2 nvq. Now our former garage has 2 units a small long 1 with a ramp and enough room to work on 2 cars extra and a bigger unit with a 2 post and a 4 post. Now im pondering wether to see if i could possibly rent the smaller 1 and the ramp and welder etc etc and start up my own repair shop starting doing the basics - tyres,brakes suspension,exhausts etc etc.

Now what kind of insurance and extras will i need? will i be needing liabilty etc etc?

any help on this would be ideal!! thanks!

[db_1.2]

I would of thought also to make sure the insurance is valid, you will need to comply with all the health and safety stuff, such as keeping correct materials in the correct places, locked up etc. And if your going to do all that, youll need to claim this all back via tax and VAT to make some sort of living, while doing all that, you might need to set up the business legit, which means also disposing of things correctly, which in turn costs more money!

I and a few of my mates thought of doing it before, but really, unless your going to make a god damn good go at it, its not gonna happen, like most business's. And also dont forget, you need to speculate to accumulate!

[Mike]

Public liability is a definate. £1million minimum cover is a safe bet aswell! (industry standard minimum everywhere now i think??)

You'll need to register as self employed (pish easy to do, all you need is a UTR number & a trading name, Edit: And address) youll also be needing an accountant (imperetive TBH!)

Also some form of contents insurance & a back up plan if it goes tits up!

If theres more then 5 people working on the premises, you need by law some one who is First Aid trained, also a fire meeting point & some form of emergency procedure in place (legal requirement)

[blue_peg_16v]

you will definatly need public liabilitys insurance, just think if some thing went wrong on a car you had fixed and someone tryed to sue you

[muzzy]

Motor traders insurance to cover you road testing and driving vehicles
Employers Liability insurance
Insurance for your premises & contents
Public liability insurance
Pollution risk insurance (not mandatory)

[Nobby]

There would only be 2 of us working. I know about the health and safety lark as it was all in place before so could still stand ie fire extinguisers and signs and that.

[blue_peg_16v]

I would of thought also to make sure the insurance is valid, you will need to comply with all the health and safety stuff, such as keeping correct materials in the correct places, locked up etc. And if your going to do all that, youll need to claim this all back via tax and VAT to make some sort of living, while doing all that, you might need to set up the business legit, which means also disposing of things correctly, which in turn costs more money!

I and a few of my mates thought of doing it before, but really, unless your going to make a god damn good go at it, its not gonna happen, like most business's. And also dont forget, you need to speculate to accumulate!

the company will have to make a profit of £68k before you can become vat registered

and everyone knows cash is king lol

[Mike]

ye i know about the health and safety lark as it was all in place before so could still stand ie fire extinguisers and signs and that.

Extinguishers *should* be tested every 12 months IIRC?

Im not trying to dishearten you or owt, but starting a company from scratch really is hard work! Even more so when business premises are included in that!

[muzzy]

A lot of motor factors etc like to see a VAT registration number when sorting out an account for you, not a problem if you are planning on paying for parts as and when but that would obviously get a bit annoying.

[blue_peg_16v]

Extinguishers *should* be tested every 12 months IIRC?

Im not trying to dishearten you or owt, but starting a company from scratch really is hard work! Even more so when business premises are included in that!

yup thats right mike dad has to have them done for bnb

[Mike]

the company will have to make a profit of £68k before you can become vat registered

and everyone knows cash is king lol

And then its tax returns every 3 months :( boring as fook!!

[Nobby]

tbh im really up for making ago of this just need to look into it more

[blue_peg_16v]

i bet

[blue_peg_16v]

tbh im really up for making ago of this just need to look into it more

go for it whats the worst that can happen it not come off and you go work for someone else again

[Mike]

A lot of motor factors etc like to see a VAT registration number when sorting out an account for you, not a problem if you are planning on paying for parts as and when but that would obviously get a bit annoying.

True yes, but you cannot, at all, get a Vat number until you register as "VAT Registered". As Peg has said, once your over £68k earnings (thats not personal earnings, thats the annual company turnover) you have to register for VAT.

Your then issued your VAT number, an potentially have to either increase your prices by 17.5% or decrease what "personal" income by 17.5% to compensate for it. Well, thats what we did according to my accountant women anyway?

[muzzy]

Speak to your local business advice people, they will be able to tell you everything you need to know about generally starting up and anything specific to your business type.

[liam944nova]

You should look into seeing a adviser for professional advice. Up here in Scotland we have the business gateway and im sure there will be something the same where you live. You can get free advice and help plus they can tell you all about the health and safety stuff. It is hard work and you need good bit of cash behind you to get started.

[blue_peg_16v]

True yes, but you cannot, at all, get a Vat number until you register as "VAT Registered". As Peg has said, once your over £68k earnings (thats not personal earnings, thats the annual company turnover) you have to register for VAT.

Your then issued your VAT number, an potentially have to either increase your prices by 17.5% or decrease what "personal" income by 17.5% to compensate for it. Well, thats what we did according to my accountant women anyway?

hence why my dad has said if the bnb gets to 68k he will shut till the next april lol too much paper work and its only his retirement income lol

[Mike]

hence why my dad has said if the bnb gets to 68k he will shut till the next april lol too much paper work and its only his retirement income lol

Dont blame him!!

My personal company (read as sole trader ) makes nowhere enough to be VAT registered. But the other company I part run is well over the VAT figure.

Altho certain invoices can be made out to me (as in the jobs i personally do), in attempt to reduce the turn over figure elsewhere :)

Pants thing is, id love to stop up an chat about this all night, as going it alone is (now) the best thing i ever did, an its something i now preach where i can, but my bed is calling me :(

[db_1.2]

the company will have to make a profit of £68k before you can become vat registered

and everyone knows cash is king lol

I thought it was more lik £35k?

[my nova]

i would think really hard first mate im just in the middle of shuting mine down u think you are geting sum money buy u then another bill comes throw the door its all tax in this country. good look if u go for it just make sure u can take all the stress and very long hours

[muzzy]

You would need to offer something people can't get elsewhere, whether that is top notch service or specialise in a certain marque or take on jobs other folk wont do but then there's usually reasons behind that.

[blue_peg_16v]

other option could be mobil mechanic van and tools saves having the overheads of premisis

also gives you a taster and if it goes well could get premisis at a later date

[Mike]

I thought it was more lik £35k?

No, it is £68k per annum or over.

Or you can volntarily register if you so wish, buts there really is no point unless a) you know for a fact you'll hit 68k within say 2 weeks of trading or b) you like more paper work & dont get out much.

P.s, be prepared for it to take over your life if you go it alone :(

[Mike]

Useful link if your serious:

http://www.businesslink.gov.uk/bdotg/action/home?r.s=b&r.l4=1073863071&r.l1=1073858808&r.lc=en&r.l3=1083126677&r.l2=1083126673&r.i=1077722988&r.t=BLTTOOL

Personally i had no advice other then from my dad, time served industrial sparky. The rest i just figured out as i went along really.

P.s again, if self employed you only pay £31.20 in National Insurance every 3 months :P night night lol