Beginner’s Guide on Starting a Tyre Fitting Business in the United Kingdom
Do you have the skills and experience in tyre fitting and want to earn more than your employee fees? If you do, then starting a tyre fitting business in the United Kingdom is the ideal venture for you! The market is large, and there’s plenty of opportunity for growth and success. What’s more, starting and managing your own business is time-flexible and rewarding at the same time.
This article is a beginner’s guide to starting a tyre fitting business in the United Kingdom. Here, you’ll learn about the business, industry, tips for successful business planning, and the process of United Kingdom company registration. We know that starting a business is daunting, so we want to help you with a quick summary of the information you need to set your business up properly. With the right information and support, you can drive your practical skills in tyre fitting better suited for success.
What is Tyre Fitting Business?
Tyre fitting businesses provide inspection, repairs, and other services for vehicle tyres and their related components. Tyre inspection may involve checking for signs of damage, wear, cracks, and lodged debris. Repair services include patching of holes, replacement of inner tubes, whole tyre replacement, and alignment. Tyre fitters may also offer advice and carry out road tests.
Tyre fitting business owners may choose to offer services directly to customers or partner with rental companies or vehicle fleet companies. Servicing directly to customers is ideal in locations whose population is composed largely of vehicle owners with considerable incomes. Meanwhile, contracting with vehicle rental companies is suitable if there are not enough vehicle owners to require your services. But with enough capacity, you may choose to employ both business types together.
The tyre fitting sector is currently facing strong competition from national chains of fast-fit outlets. Some of these big competitors include ATS Euromaster, Kwik-Fit, Halfords Autocentres, and National Tyres, and Autocare. The disadvantage of independent tyre fitting businesses with these companies is that they cannot readily compete with the more economical prices. Small and starting tyre fitters can make the market see that they can compete and surpass the big companies’ service quality.
Moreover, starting a tyre fitting business has positive outlooks in that the number of cars in the United Kingdom continues to increase; and as a result, a relative increase in the demand for tyre fitting services. Tyre innovations also increase the need for tyre fitters, as more would want to fit their cars with modern tyres. Some of these new developments include energy-saving eco tyres, all-season tyres, and run-flat tyres.
How to Start a Tyre Fitting Business in the United Kingdom
Estimate Demand & Competition
There is an estimated 130,000 tyre replacement demand for cars, vans, and lorries in Britain every day. This market is large and offers great potential even for starting tyre fitting businesses, but competition is tight. To properly compete with big and existing tyre-fitting businesses, you have to pick the ideal location and create a strong competitive advantage. In your chosen location, estimate the demand and competition so you can gauge your profitability early on.
Pick a Niche
Choosing a niche market is one strategy to compete in large and highly competitive sectors such as tyre fitting. You can choose to specialize in fitting motorcycles, caravans, trailers, and commercial or industrial vehicles. Additionally, you may also focus on fitting winter, vintage, or budget-friendly tyres. In offering specialist tyres, in addition to standard ones, you are increasing your chances of securing a consistent or considerable market share.
Price Services
In pricing your services and merchandise, always make sure that you cover all your direct costs, overhead, and drawings. Your prices should be total direct costs, plus proportionate indirect costs and a percentage of profit. Tyre fitting bills usually itemize the cost of tyres and other parts, with a separate charge for the wheel balancing and steering alignment. The labor charge is typically added to the tyre price. so think about whether this strategy will be advantageous for you.
Ensure Standards of Service and Quality of Tyres
In this competitive sector, promoting and living up to tyres’ standard services and quality will help you build a considerable customer base. Joining trade associations like the National Tyre Distributors Association (NTDA) will demonstrate your dedication to high standards and give customer confidence. Following the regulations relating to tyre supply will also enhance your chances of satisfying customer needs.
How to Register a Tyre Fitting Business
Registering a business means setting up as either a sole trader, partnership, or limited company. Sole trader registration is simple enough with HMRC registration for tax. To register as a partnership, you’ll have to register for tax as the nominated partner. A partnership can have two or more partners, where the nominated partner handles the keeping of business and reporting of taxes.
On the other hand, registering as a limited company is more complicated as the process basically creates a new entity- the company. To set up a company, you have to register your business name with the Companies House and register for taxes with HMRC. In the Companies House registration, you have to name your company, appoint a director, and adopt articles of incorporation. Company registration and tax registration are typically already simultaneous. You don’t have to worry about making time for two separate transactions.
You can register your business by yourself online or by post. The online company registration costs £12 and is completed within 24 hours. By post, registration costs £40 and takes eight to ten days processing time. Another option you can pick for more convenient company registration is acquiring United Kingdom company incorporation services. 3E Accounting company formation services are in packages suitable even for small and medium-sized businesses. It’s fast, complete, and stress-free, so you have more time to focus on more critical startup activities.
Licenses and Other Legalities in Starting a Tyre Fitting Business
There is no specific license required for tyre fitting businesses in the United Kingdom. However, in selling part-worn tyres, you may need a second-hand dealer’s license. Some local authorities in Scotland require this license. Additionally, you need to acquire a goods vehicle operator’s license to use large vehicles to carry goods and equipment in England, Scotland, and Wales. To be safe, inquire with your local authority about the licenses you may need in starting a tyre fitting business.
Moreover, as a business owner, it is also crucial to know the legal matters relating to tyre fitting and business in general. For example, you must adhere to British and European Standards and legislation regarding tyre safety. These standards cover new and part-worn tyres in aspects like the amount of tread depth and defects. The British Standards cover tyre repair to ensure that mending issues like punctures are properly done.
If you also sell tyre insurance policies, you need to be familiar with the Financial Conduct Authority (FCA) guidelines relating to general insurance. You also have to look up the pollution control legislation and identify if you need to get permits for some of your activities. You need to get permits to operate a waste oil burner and to refinish vehicles using spray paint.
Additionally, you may need to register as a lower-tier waste carrier to transport removed tyres as business waste. In applying, you will receive a certificate of registration from the Environment Agency in England and its related agencies in other countries. And if your business produces 500kg or more of waste that is considered hazardous in Wales, you must register as a hazardous waste producer with the Natural Resources Agency.
Company Formation Support in the United Kingdom
There’s a lot to be done in starting a tyre fitting business in the United Kingdom. There’s the aspect of making the business legal. And there’s also the planning aspect which is crucial to start the business on the right footing. Focus your time and energy instead on making plans and strategizing by setting up with the support of a United Kingdom corporate service provider.
Conclusion
3E Accounting is an internationally recognized corporate service provider which is renowned for its efficiency and cost-effectiveness in registering companies. You can depend on us in completing your company formation with full compliance and less effort on your side. Our agents are competent and well-experienced. You can put your trust in them to assist you in reaching your business goals. Contact 3E Accounting today to get your company set up and ready in no time.