Quick answer
Self-employed driving instructors count their total lesson fees towards the MTD threshold, before franchise fees and car costs. Dual-control cars can’t use HMRC’s flat mileage rate, so instructors record actual vehicle costs.
Key facts
Lesson and test-day fees count in full
Franchise fees are an expense, not a deduction from income
Dual-control cars can’t use simplified mileage
Record actual fuel, insurance and repair costs instead
When MTD applies
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
An instructor teaching 30 hours a week at £38 an hour for 46 weeks takes about £52,400 in lesson fees. That’s over £50,000, so if their 2024/25 return showed a similar figure, MTD started in April 2026.
Your car
HMRC’s simplified expenses page says flat mileage rates can’t be used for dual-control driving instructor cars. Instead, record the actual costs: fuel, insurance, servicing, repairs, road tax, and any lease or finance costs. Buying the car is usually claimed through capital allowances.
Franchise fees
If you pay a weekly franchise fee to a driving school, record your full lesson income and the fee as an expense. Don’t just record the net amount.
Other costs
Instructor registration and renewal fees
Training that keeps your current skills up to date
Booking software and your phone
Advertising and website costs
See claiming business equipment for how vehicles are treated.
Use the MTD checker to see your own start date.