Driving Instructor Tax Explained

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Self-Employed Driving Instructor’s tax guide

We prepare Tax Returns online for just £130

What expenses can I claim?

Any expenses that you have incurred which are wholly and exclusively for your driving instruction are tax deductible. The main expenses will be the running costs of your tuition vehicle. Below is a list of expenses you are entitled to claim.

Vehicle running costs

• Fuel
• Repairs & Maintenance
• Road tax, insurance & MOT
• Cleaning
• Parking & Tolls

Other expenses include

• Telephone & Mobile Phone
• Internet
• Advertising
• Postage & stationery
• Use of home as office
• Franchise fee
• Computer consumables
• Continuing professional training (but not initial training fees to become an instructor)
• Bank charges on business account
• Accountancy fees
• Other sundry items

Capital Allowances

If the car has dual controls it will qualify for 100% Annual Investment Allowance, if this is the case you can claim up to the full cost of the price in the year of purchase – adjusted for reasonable private use.

If the car does not have dual controls you may still be able to claim 100% First Year Allowance if the car’s CO2 emissions are up to and including 110 g/km. Above this level the claim will be 18% Writing Down Allowance per year. In the unlikely event that the CO2 emissions are greater than 160 g/km you will be restricted to 8% Writing Down Allowance per year.

All claims need to be adjusted for private use as appropriate.

If you have any other assets that you bought specifically for your work you may also be able to claim capital allowances for them too.