MOT tester invoice template

How do MOT testers usually invoice?

MOT testing stations invoice the test fee at or below the statutory maximum, outside the scope of VAT, on the same invoice as any repairs needed to pass, which are standard rated, so the invoice carries two VAT treatments. Payment is taken when the car is collected. Fleet and trade customers are invoiced monthly with each vehicle's registration and test result listed.

MOT testers in this example are paid on receipt. Hourly rates run from £45 to £75.

What should a MOT tester put on an invoice?

Beyond the legal basics, MOT testers should:

• Show the MOT fee on its own line with no VAT and the vehicle registration.
• List repairs and parts separately with VAT at 20% so the VAT split is clear.
• State whether a retest was free or charged under the retest rules.
• For trade customers, list each vehicle with the test date and result.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do MOT testers charge VAT?

The MOT test fee is outside the scope of VAT when charged at or below the statutory maximum of £54.85 for a car, so it is shown on the invoice with no VAT. Repairs, retest work and parts are standard rated at 20% once you are VAT registered, which is compulsory above £90,000 turnover and which almost every testing station exceeds. If you charge more than the statutory maximum, VAT is due on the excess.

On the Flat Rate Scheme the sector for MOT testers is usually “Repairing vehicles” at 8.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.