We’ve all become much more reliant on virtual services when our usual ones have been restricted due to COVID 19 restrictions. From supermarket deliveries to virtual doctor’s appointments, everything’s being done through a screen.
And the automotive industry’s no exception. It’s important to understand where that leaves us, as we slowly return to normal.
Online tool suppliers
Have you been trying to find parts online? You’re definitely not alone. According to an Impression Communications survey, more than 30% of garages were looking for online parts suppliers in June 2020. And this has just carried on growing.
The social distancing restrictions have changed how most people work including you and your suppliers. How is this affecting you?
Have you switched to buying parts online?
You’re not the only one. In June 2020, Impression Communications (who are “automotive aftermarket PR specialists”) published a survey of garages that revealed over 30% were shopping online for essential parts. Between a decrease in availability and COVID-19 lockdown, it’s a sensible option.
But Director of PartsInMotion.co.uk, Matt Gates, points out that it’s not just social distancing restrictions that are taking garage online:
“Within the past year, we have seen a rise in the number of garages transacting and communicating online and it’s something they’ve become very comfortable with. The same day supply market is not where our focus is and we’ve been successful in working with garages to ensure an efficient next day supply of the correct parts, from OE-quality brands.
“Alongside a responsible pricing structure that delivers superb value to both suppliers and customers, our main point of difference is that we can offer customers access to the largest range of products and ensure a consistently high level of availability. Online is the direction of travel in many aspects of our daily lives and it’s important garages have access to this resource.”
Perhaps this range of availability will become a long term positive.
Are your customers looking for you online?
An article for Auto Trade News from July 2020, reports that AutoAdvisor.co.uk had an 88% rise in their online traffic. Why? Three main reasons:
- Car journeys were reduced by 70% during the tightest lockdown restrictions.
- Dealerships and garages were closed, or only partially opened.
- MOT deadline extension.
Just like for everything else, car, van and motorbike owners are searching for advice about their vehicles on the internet. Autoadvisor.co.uk answers their most asked questions with short videos (leading to that 88% increase in traffic).
People want to know how to take care of their car when it’s sitting in the driveway. They want to do any basics themselves, so it’ll pass its MOT. And, thanks to lockdown and furlough, they’ve got the time to do it.
How have you been dealing with your customers’ queries?
Message, email, blog articles, social media posts, old school phone calls? If your garage doesn’t already have a full digital presence, then setting up or expanding your website is a much bigger job.
Perhaps you went straight onto social media to make those critical connections with other people in the same position and help your customers.
Mark Field, Director of Impression, summarises the potential of digital for garages going forward through the next stages of the pandemic recovery:
“…the automotive aftermarket supply chain showed its resilient self, offering to help its local community to ensure critical workers could continue to move unrestricted. In doing so, the trade found another ally – communication. Garages flocked to social media, going beyond the participation of forums to the creation of their own platforms and digital communication with customers. In short, the automotive aftermarket has increased its digital literacy at a phenomenal rate, and it isn’t stopping.”
Digital work is still a business expense
Website creation agencies, graphic designers, writers, SEO experts, video creators – are all legitimate business costs. Even if it seems ‘new-fangled’ or ‘just playing on your phone’ to you. You deduct them from your profits before you pay any tax.
And while you’re enjoying that thought, don’t forget to let you employees know about claiming a tool tax rebate for the equipment, tools and toolboxes bought to carry out their duties. COVID-19 hasn’t changed any of these rules although, understandably, it’s taking HMRC a bit longer to process claims.
What kind of things can I claim in a Mechanics Tax Rebate?
There are all kinds of work expenses and tax reliefs all taxpayers can apply for.
As a garage owner is likely that you buy some of your tools and equipment from the likes of Mac Tools and Snap On Tools.
Your accountant will claim back the tax relief your business is due automatically however your employees who buy their own tools can claim back tax relief as well through the PAYE system.
We specialise in tool tax rebates for car mechanics and other trades people and have found that the most commonly successful items are:
- IMI membership fee.
- Tools, tool storage including tool boxes.
- Uniform laundering.
- Protective clothing and boots.
- Interest on finance agreements for tool purchases.
- Mileage for mobile mechanics travelling to different locations.
Lot’s of our clients receive in excess of £900 when claiming for their tools and tool boxes meaning some of your employees could be entitled to a substantial refund of tax.
Investing in digital, finding new online suppliers, perhaps even paying for online advertising, whatever business developments you’re making in your garage, keep your paperwork. You need a clear set of evidence to support tax declarations and tax relief claims. Save invoices and receipts in a digital format, or paper filing cabinet. It doesn’t matter. Just make sure they’re all there and we’ll help you sort them out for your self assessment, VAT return etc. Just don’t delete them.
