Driving instructor invoice template

How do driving instructors usually invoice?

Driving instructors are paid per lesson, usually at the end of each lesson by card or bank transfer, or in advance for block bookings of 10 or 20 hours at a discounted rate, and issue a receipt or statement rather than an invoice for most pupils. Test day car hire is a fixed fee including the pre-test lesson. Pupils funded by employers, colleges or the Motability scheme need a proper invoice with lesson dates.

Driving instructors in this example are paid on receipt. Hourly rates run from £35 to £50.

What should a driving instructor put on an invoice?

Beyond the legal basics, driving instructors should:

• List lesson dates and durations on any statement or invoice; parents and funders ask for them.
• State the block booking hours, the hours used and the balance remaining.
• Charge test day hire as a fixed line that includes the pre-test lesson.
• State your cancellation policy (commonly 48 hours) and charge late cancellations under it.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do driving instructors charge VAT?

Driving lessons are standard rated at 20% once you are VAT registered, which is compulsory above £90,000 turnover. Driving tuition is not exempt as education because it is not a subject ordinarily taught in schools. Nearly all independent instructors are below the threshold and charge no VAT. Franchise fees you pay to a school are a cost, not something you charge.

On the Flat Rate Scheme the sector for driving instructors is usually “Any other activity not listed elsewhere” at 12% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.