An accountant for driving instructors.

Franchise or independent?

Either way, you’re normally self-employed. Franchise instructors pay a weekly fee to a driving school and independents keep their own bookings. The fees are a business cost in both cases, and we’ll show you the figure on your accounts.

Costs you can usually claim

• Franchise or car lease fees
• Fuel, servicing, repairs, insurance and MOT
• Dual controls, a roof sign and other lesson equipment
• Lesson booking software, advertising and website costs
• Training and registration costs that relate to your work

Mileage rate or actual costs?

If you use your own car, you can usually choose between claiming actual running costs or a flat mileage rate. From 6 April 2026 the rate is 55p a mile for the first 10,000 business miles and 25p after that. Because most instructors cover high mileage, the actual-cost method often suits better. We compare both for you.

Tax and National Insurance

You pay Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above that (2026 to 2027). Class 2 is no longer compulsory.

Making Tax Digital for Income Tax applies to self-employed income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. If it applies to you, you send HMRC short updates each quarter.

VAT

Registration is required once taxable turnover goes over £90,000 in 12 months. Tell us if lessons are growing towards that.