Does this include Class 2 National Insurance?

Class 2 NI is treated as £0 here. Since 2024/25 self-employed people with profits above the £6,725 small-profits threshold are credited with Class 2 without paying it. If your profit is below that you can pay it voluntarily to protect your State Pension.

What about payments on account?

If your tax bill is over £1,000, HMRC asks for two payments on account towards next year — each 50% of this year’s bill, due 31 January and 31 July. Your first bill therefore includes 150% of the amount shown.

I’m in Scotland — is this right for me?

No. Scotland sets its own Income Tax bands and rates. This calculator uses the England, Wales and Northern Ireland bands. National Insurance is the same across the UK.

What counts as an allowable expense?

For a driving instructor: fuel and running costs for the tuition car (or simplified mileage), lease or finance interest, insurance, franchise fees, professional body membership, phone and a share of home-office costs. Keep receipts.

Free tool

Driving instructor tax calculator

Estimate your Self Assessment bill as a self-employed ADI.

Enter your lesson income and allowable expenses for the tax year. This works out your taxable profit, Income Tax, Class 4 National Insurance, and any payments on account — plus how much to set aside each month.

Estimated tax & NI for 2025/26

—

Set aside — a month. Effective rate —.

Taxable profit: —
Personal allowance: —
Income Tax: —
Class 4 NI: —
Class 2 NI: —
First bill (incl. payments on account): —
Each payment on account: —

England, Wales & Northern Ireland only — Scotland has different Income Tax bands. Assumes total income under £100,000 (no personal-allowance taper).

How this is worked out

Taxable profit is your lesson income plus any other self-employed income, minus allowable expenses (never below zero).

Personal allowance of £12,570 is tax-free. Above it, Income Tax for 2025/26 is 20% up to £50,270, 40% up to £125,140, then 45%.

Class 4 National Insurance is 6% of profit between £12,570 and £50,270, then 2% above that. Class 2 is treated as paid (£0) once profit passes £6,725.

Payments on account: if the total is over £1,000, HMRC adds two advance payments of 50% each — so the January bill is 1.5× the year’s tax, with the second half due in July.

Set aside per month is the total divided by 12. Effective rate is the total as a percentage of all your income.

Working out take-home first? Try the driving instructor earnings calculator.

Common questions

Does this include Class 2 National Insurance?: Class 2 NI is treated as £0 here. Since 2024/25 self-employed people with profits above the £6,725 small-profits threshold are credited with Class 2 without paying it. If your profit is below that you can pay it voluntarily to protect your State Pension.
What about payments on account?: If your tax bill is over £1,000, HMRC asks for two payments on account towards next year — each 50% of this year’s bill, due 31 January and 31 July. Your first bill therefore includes 150% of the amount shown.
I’m in Scotland — is this right for me?: No. Scotland sets its own Income Tax bands and rates. This calculator uses the England, Wales and Northern Ireland bands. National Insurance is the same across the UK.
What counts as an allowable expense?: For a driving instructor: fuel and running costs for the tuition car (or simplified mileage), lease or finance interest, insurance, franchise fees, professional body membership, phone and a share of home-office costs. Keep receipts.

Estimate only — not tax advice. England, Wales & Northern Ireland, 2025/26. Bands and thresholds can change each April; check gov.uk or your accountant before relying on these figures.

Do the maths once a year, not every lesson

Lesson Diary keeps your lesson income and expenses logged all year and exports them ready for your Self Assessment. It never takes a cut of your lesson money — a flat £9.99 a month, free for 7 days.

Start free for 7 days See pricing

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