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.
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.
Do not be taken in by adverts claiming £40,000-50,000 per year though this is unrealistic and to earn this amount you would need to work ridiculous hours. This is really your business turnover.
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
Lessons based on £27 per hour x 40 hours per week x 48 weeks= £40,000 (turnover)
(This includes 4 weeks for holidays/sickness/quiet periods etc)
Total income £51,840 per annum
Fewer deductions per annum
So by this very rough example you are actual ‘take home pay’ would be in the region of:
£830.00 per week before tax and you are working hard to achieve this.
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 £45,000 per annum in theory.
Unfortunately a 40 hr week means 50 hours when you take into account the running in between, and due to cancellations and quiet periods look at a 25-30 hr week as being realistic and adjust figures accordingly
Part time instructors will need to cut down on their outgoings and generally keep cars longer. They generally operate independently and do not pay franchise fees.
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 £27 per hour lessons.
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.
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