Hi I wonder if someone could help. We are an independent garage who have recently startng selling vehicles along side our existing repair business.
My question is, can I charge labour on a vehicle to a sales ( internal ) invoice. My accountant believes that this can not be done., Surely my Technicians' are a direct cost to our company as is lighting, and general bills etc and also retail work that cannot be carried out whilst a sales repair is being carried out. Surely this comes off the profit of any vehicle sold thus lowering Tax.
Say our Retail Labour Rate is £60 plus VAT could I charge that to a Sales job on the basis that I cannot carry out any retail work, or would I have to work out my direct cost I.e cost of Technician etc say £30.00 per labour and use that as an Internal Labour.
I cannot see how there is not an internal labour cost as my accountant suggests as there is a cost to our business when carrying out additional sales work.
Thank you
