Driving Instructors | ReachHYE Accountants

Tax-deductible expenses for a ADI (Approved Driving Instructor)

Purchased a Vehicle

Remember, while you cannot deduct the full car payment as an expense, you can claim capital allowances based on the CO2 emissions of the vehicle.

For vehicles with CO2 emissions between 1 and 50 g/km, the Writing Down Allowance (WDA) is 18%.
For vehicles with CO2 emissions above 50 g/km, the Writing Down Allowance (WDA) is 6%.
For vehicles with CO2 emissions of 0 g/km (electric vehicles), you can claim 100% First Year Allowance (FYA), not a Writing Down Allowance.

In summary of CO2 emissions:

0 g/km: 100% FYA
1 - 50 g/km: 18% WDA
Above 50 g/km: 6% WDA

Alternatively, the Mileage Allowance Method for utilising your personal vehicle

You can claim mileage driven for business purposes:

For the first 10,000 miles driven, the mileage rate is 45 pence per mile.
After the first 10,000 miles, the mileage rate decreases to 25 pence per mile.

If you choose to claim mileage using this method (known as the simplified expenses method for vehicles), you cannot separately claim the cost of your car (capital allowance), servicing, or insurance as business expenses.

Leased a Vehicle

If you leased a car on or after 6 April 2020.

The CO2 emissions of the leased car are over 110 g/km.
In this case, you must disallow 15% of the hire charge or rental cost for tax purposes.

Tax Deductible Expenses

Vehicle running costs

Fuel business use (example business 80% personal 20%)
Vehicle Repairs and Maintenance
The costs of your road tax, insurance and mot test
Vehicle cleaning
Parking & Tolls

Other expenses

Mobile phone usage for business (example business 80% personal 20%)
Internet
Advertising
Stationery & Postage
Use of home as office (only the business element of the home use)
Franchise fees
Accountants fees
And any other related business expenses (phone chargers, mounts, etc)
Computer consumables
Continuing professional education (not the initial training fee)

Expenses Not Eligible for Tax Deduction

Fines and penalties
HMRC self assessment penalties and interest
Clothing (unless branded)

Remember to keep detailed records and receipts for all expenses to support your deductions when filing your taxes. Additionally, it's essential to ensure that expenses claimed are wholly and exclusively for business purposes.