Driving Schools

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jilt
jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
Does any one have any Driving School clients?

Any special treatments when preparing their accounts that I might not have though of?

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  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Just a driving instructor! However, if you are talking 'driving school', just be careful about the employment status of the drivers.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    Out of curiousity how many miles do they usually do? I can't imagine the 40/45p per mile method would be viable.
  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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    Exactly! To be honest I don't know much at all about the email enquirer yet, just that they have SE contractors who provide their own vehicles and work under the enquirier's name.

    Sorry TC missed your post, think the above bit in response to PGM answers that in part. Obviously don't know what's in their contracts.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    PGM wrote: »
    Out of curiousity how many miles do they usually do? I can't imagine the 40/45p per mile method would be viable.

    I would expect not. Self employed people always have the choice to use actual costs, with an apportionment for private use.

    The mileage rate is normally better value, tax wise. I think this would be a good exception.

    Jill; I have nothing further to add than what's already been said. :)
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    I've got several driving instructor clients - nothing in particular to worry about but remember that if their car is fitted with dual controls it can be treated the same as a commercial vehicle and will therefore qualify for AIA
  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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    JodieR wrote: »
    I've got several driving instructor clients - nothing in particular to worry about but remember that if their car is fitted with dual controls it can be treated the same as a commercial vehicle and will therefore qualify for AIA

    Oh thank you Jodie, I had read that it would qualify on a forum but then read conflicting advise on the same forum ...lol

    What about mileage? A reliable source gave me some info regarding which is allowable and which is not but I can't seem to find anything on HMRC.
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    I've looked up about the dual controls on HMRC's website before so i'm sure that's right.

    Don't know about the mileage though, none of my instructor clients claim mileage
  • clegganator
    clegganator Registered Posts: 184 Dedicated contributor 🦉
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    Wouldn't of thought mileage is the best thing to claim. When I was learning to drive doing emergency stops the MPG dropped by about 20! Motor expenses would take into account uneconomical driving styles whereas mileage wouldn't. So long as you adjust for personal use (if any) it shouldn't be a problem.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Yep, I am convinced that this is one case where mileage would not be the most tax efficient way of claiming expenses. Anyway, if the car qualifies for AIA and you're going to claim it, you have to claim motor costs as incurred as opposed to mileage.
  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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    Sorry I didn't really explain myself properly there, when it comes to adjusting motor expenses for private use, what would HMRC class as private use?

    Am I right in thinking I've read that the reason they allow you to claim AIA on dual controls is becasue it's dual control you won't use it for pearsonal use. Or have I been dreaming again? ....lol
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Hopefully they would class private use as going to do the weekly food shop and on jollies. If their place of work is based at home, then any business travel should be allowable. If you can't readily find any information that travel to a lesson is disallowable (which goes against all logic), then I would assume it was safe and treat as any other business.
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    I just treat it the same as any other situation - some clients do just use the instructor car for business and use their spouse's car for general errands, others (especially those who don't have access to another vehicle) I dissaollow 5, 10 or whatever reasonable % for personal use. Just because a car's got dual controls it doesn't mean it'll never be used for personal use, but I think it'll be viewed by HMRC in a similar way to a van whereby they will accept that in some situations it is used 100% for business purposes, whereas a normal car I would always dissallow at least 5% of costs.
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