An example of potential earnings
LDC instructors who carry out 40 lessons per week, take 4 weeks off for holidays per year and charge our average rate of £22 per lesson (lesson prices vary from area to area), could earn the following per week after meeting all business and car expenses, provided this workload was maintained throughout the year:
| WEEKLY GROSS INCOME | |
| 40 lessons at £22 each | £880 |
| LDC Materials Income | £20 |
| Total Income | £900 |
| WEEKLY EXPENDITURE (Including VAT) | |
| Car Rental / Insurance | £94 |
| Fuel | £80 |
| Franchise Fee | £42 |
| Average top-up pupil fees | £20 |
| Total Expenditure | £236 |
| PRE TAX EARNINGS | £664 |
The above is equivalent to an annual salary of £31,248 plus a car (The car rental/insurance is based on a 5 door Vauxhall Corsa Club 1.3 CDTi with air conditioning and a combined MPG of 62.8). However, because you are self-employed you will make certain tax savings, which will enable you to keep more of the money you earn. Also if you choose to buy rather than rent a driving school car your earnings would potentially increase by a further £1,000 per year.
Naturally, in areas where the lesson rate is higher than the average rate or the type of training given was valued at a higher rate, potential earnings would correspondingly be much greater. For example the above figure of £31,248 would increase to £35,088 at £24 per lesson, £38,928 at £26 per lesson and £42,768 at £28 per lesson charged.
Please do not expect these income levels in your first few years of trading as promotional discounts and other aspects of becoming established will suppress your earnings potential.