Earnings & Cost

Will I have enough work?

What you need to remember is that when you obtain your green badge your services are in demand! Make sure you get a good deal. We deal with many local companies who will take you on upon qualification. Advice is freely offered upon qualification, all part of the service.

Do not be taken in by large training companies offering a guaranteed job/working within 8 weeks etc. They just want your money up-front.

Driving instructors are self -employed. No company offers guaranteed pupil is that is the important bit.
If you are good, you will be very busy, train with Homer’s and you will be good.

How much can I earn?

Most driving instructors are self-employed and as such are normally sole traders. They take all the risks and as such are able to keep all the business profits. Tax is calculated and paid under the self-assessment scheme and national insurance at class 2 and possibly class 4.

Driving instructors can earn a good living, the more hours you do the more money you can earn.

You can work very independently or under a franchise scheme with your own car or with a car provided by the larger companies BSM or AA etc.

The following sets out a rough guide of what you may expect to earn:

Remember this will depend on the local area prices, in affluent areas the hourly rate may be much higher or lower in less affluent areas.

Sole trader operating under a franchise running his or her own vehicle covering 30,000 miles per annum

There are various different franchise schemes available and this is just one example.

Lessons based on £37 per hour x 33 1 hours lessons per week x 48 weeks= £58,608 (turnover)
(This includes 4 weeks for holidays/sickness/quiet periods etc)

Total income £58,608 per annum

Fewer deductions per annum

• Homer’s Franchise fee £90.00 per week x 48 weeks = £4320
• Fuel & maintenance/servicing/other vehicle costs = £5760
• Vehicle lease fees or loan payment = £4800
• Business overheads such as broadband stationery etc = £1000.00
• Insurance = £500.00
• Accountant = £350.00
• Phone= £120.00
• ADI licence= £75.00

Deductions £16925

Income £41,683 per year

So by this very rough example of your actual ‘take home pay’ would be in the region of:

£800 per week before tax for a normal working week of 40 hours to include 33 lessons and travel time time between them.

You could earn much more than this or much less! Bear in mind you also have a good quality car included in this. Private car expenses are approx £6000 per annum. Taking this into account the equivalent PAYE salary could be up to £46,000 per annum in theory.

Part time instructors will need to cut down on their outgoings and generally keep cars longer.

Whether you work for yourself, under a franchise for a large company, under a franchise for a small company, if you buy your own car, lease your own car, have a car provided etc the figures generally work out very similar.

You need to get yourself established and from then on work is always available nationwide and remember learners are the tip of the iceberg.

Bearing in mind these figures are based on £37 per hour lessons for a manual car, automatic lessons are £40 per hour.

Do I need an Accountant?

Yes! A good accountant will easily save you more money than his/her fee. Get an accountant, get good advice. The taxman will believe an accountant, will he believe you? Keep proper business accounts from the word go and save all your receipts.