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#26 08-06-10 21:04:42

robinsamuels
Verified Member
From: Milford Haven, Pembrokeshire,
Registered: 09-03-08
Posts: 425
Website

Re: Going Full Time as an ADI, advice needed.

Perhaps thats another reason why instructors only contract hire, because you really dont know when your going to be left out of it.

True, I don't want a 100k Picanto, no matter how good it is for instructing, if I were to quit. I've got a St Bernard for God's sake, can you imagine how had it is to fit him in the car!


When it gets to the stage of sadobestionecrophilia, give up: Otherwise known as flogging a dead horse!

http://www.robinsdriving.co.uk

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08-06-10 21:04:42

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Re: Going Full Time as an ADI, advice needed.



#27 08-06-10 23:55:24

Aspyre
Member
Registered: 17-01-09
Posts: 2,754

Re: Going Full Time as an ADI, advice needed.

Robin, the point I was making is that when someone says they "own" a car that doesn't mean that for business purposes it is a £0 overhead. You get a lot of people claiming they are miles better off than with a franchise because they aren't paying £200+ a week - the implication being they are better off by £200+. In the vast majority of cases they aren't - they might pay less, but it isn't negligible.

However you look at it, if you have a car which is less than a couple of years old then however much you paid for it has to be spread out over that couple of years. If you keep changing it then the calculations get fuzzy, but you still have to cover that car (or the next one) with your income from your business. If you've owned it for a long time then as an overhead it might be virtually nothing (except for repairs), but most/many people have newer ones.

I'm sure this will make someone mad - it usually does.

(Just to clarify, but the £30k (or any other £k) that gets talked about is nothing to do with how much tax someone pays. Everyone pays different tax, and its different every year no matter whether they are salaried or self-employed, which is why the £30k needs to refer to gross profit to be meaningful as a comparison with other ADIs and other jobs. Of course, people can continue to believe otherwise, but the record has to be set straight every now and again.

The bottom line is that you subtract all your overheads from your turnover, and whatever that comes to is your £k earnings if you want to compare with other jobs. One person grossing (pre-tax) £18k might pay a fraction of the tax someone else grossing the same pays - and legitimately. Someone paying £5k on advertising, for example, will pay less tax than someone who doesn't advertise, assuming all other overheads are the same (which they won't be)).

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#28 09-06-10 06:29:57

Roadmaster
Verified Member
Registered: 04-03-04
Posts: 5,670

Re: Going Full Time as an ADI, advice needed.

You get a lot of people claiming they are miles better off than with a franchise because they aren't paying £200+ a week - the implication being they are better off by £200+. In the vast majority of cases they aren't - they might pay less, but it isn't negligible

The cost of purchasing & running my car, over a three year period is a lot less than if I was paying a franchise of  just £100 per week.  That's fact. 

And at the end of the three years I have an asset which can be  used to reduce the expenses over the next three years.
Thats  fact.

3 years  franchise @ £100pw = £15,600 
£11,800 +  £2800 running costs,  less £1200 asset = £13,400

I make that a £2200  difference.   



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#29 12-06-10 17:28:41

Phil_Brighton
Member
Registered: 09-05-10
Posts: 14
Website

Re: Going Full Time as an ADI, advice needed.

Interesting thread this.

The bottom line is that you subtract all your overheads from your turnover, and whatever that comes to is your £k earnings if you want to compare with other jobs.

The comparison with other jobs is not straightforward. As an employee in a previous life, I had to buy my car out of my earnings (gross profit). As a driving instructor, the (majority of the) cost of my car is part of my costs and therefore none of my gross profit needs to be spent on a car. So we don't have a true like for like comparison.

Different again if I had a company car as an employee. 

It is tough to make it work. 3 years in, I'm still working on achieving £30k INCOME   :cry:

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#30 12-06-10 21:25:31

Aspyre
Member
Registered: 17-01-09
Posts: 2,754

Re: Going Full Time as an ADI, advice needed.

Fully agree. So you subtract the non-business part of that overhead and add it to your gross profit.

Then pay tax on it.

Fact remains that the amount of tax people pay has nothing at all to do with the figure you would quote if you were trying to show how much this job pays compared to other jobs.

Whether someone is advertising £20k, £25k, £30k......... £40k in some cases wink ........... the only figures that carry any weight are the ones based on pre-tax post overhead profits. Anything else is just random numbers.

I've seen people before claiming that you can "earn" £50k and it turns out they are talking about turnover - and they admit to it because they think they are right.

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#31 12-06-10 21:33:03

Target
Verified Member
From: Winchmore Hill North London
Registered: 17-01-05
Posts: 5,695
Website

Re: Going Full Time as an ADI, advice needed.

Whether someone is advertising £20k, £25k, £30k......... £40k in some cases  ........... the only figures that carry any weight are the ones based on pre-tax post overhead profits. Anything else is just random numbers.

Thats fine until someone starts to call it earnings tongue tongue tongue

Actually £50k sounds better. Dont tell my wife thou, she still cannot understand why I work 7 days a week and have no money  roll :?


Approved Driving Instructor ADI(car)
Cardington Grade (A) Diamond Special DIA MSA IAM ROSPA (Silver)
QEF Mobility Qualified
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www.targettuition.co.uk
http://www.facebook.com/TargetTuition

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#32 12-06-10 21:43:43

Aspyre
Member
Registered: 17-01-09
Posts: 2,754

Re: Going Full Time as an ADI, advice needed.

It'd be nice it it were true, though, wouldn't it? lol

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#33 12-06-10 22:21:04

jonsmithuk
Verified Member
Registered: 27-10-07
Posts: 403

Re: Going Full Time as an ADI, advice needed.

its the wife or the mistress. cannot afford both lol

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#34 19-07-10 21:15:55

asroxx@yahoo.com
Member
Registered: 03-06-10
Posts: 49
Website

Re: Going Full Time as an ADI, advice needed.

Yf you have a job and get good money stick to it. As an instructor even if you get plenty of work wich is not easy and you do louds of hours wi'll have to spend more on your car, asa the more you use it the more you wear it( e.g. brake pads, brake discs, clutch ,etc)

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#35 30-11-10 14:08:39

Hale
Verified Member
From: Reading
Registered: 26-06-05
Posts: 379
Website

Re: Going Full Time as an ADI, advice needed.

TargetAdi wrote:

Lets get serious here....Buying a second hand car is risky business, and if your looking to earn £2000 per month, your be doing some serious mileage. I could easily do 30,000 a year.

Again I have to disagree. A 3 year old car with 20,000 miles on the clock driven by one or 2 people is probably in better condition than a driving school car bought new when it hits 9 months old having 20,000 miles on it and a lot of different learners driving it. If we reckon to keep cars to about 90,000 miles they both have 70,000 miles left in them for the same maintenance costs. Just one will cost a lot less on depreciation.

Its a risk none the less, when your busy the LAST thing you need is car drama. I would be interested to see exactly what this DIA warranty covers and how much it costs. Try getting any garage to bother with a car out of warranty. As for emergency loan car or lease again i dont know of anywhere you can lease a car for short term say 2 weeks unless you are already leasing.


When i say STOP, I can only mean ONE thing!

Part 1 - Passed Sept 2003
Part 2 - Passed Nov 2003
Part 3 - Failed Aug 2004
Part 3 - Passed Jan 2005

http://www.hayleys-driving-tuition.co.uk

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#36 30-11-10 14:23:21

Hale
Verified Member
From: Reading
Registered: 26-06-05
Posts: 379
Website

Re: Going Full Time as an ADI, advice needed.

Happiness or Money?
I have been in a well paid job but these days companies want your blood. It takes it toll on health and relationships. The health aspect will most certainly catch up with you in later life. Working as an ADI im much happier much healthier but most certainly more poorer! Day to day life? a million times better, future financial prospects? not brilliant.


When i say STOP, I can only mean ONE thing!

Part 1 - Passed Sept 2003
Part 2 - Passed Nov 2003
Part 3 - Failed Aug 2004
Part 3 - Passed Jan 2005

http://www.hayleys-driving-tuition.co.uk

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#37 30-11-10 17:08:51

Phil_Brighton
Member
Registered: 09-05-10
Posts: 14
Website

Re: Going Full Time as an ADI, advice needed.

Totally echo that, Hale

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#38 26-12-10 15:04:26

Hale
Verified Member
From: Reading
Registered: 26-06-05
Posts: 379
Website

Re: Going Full Time as an ADI, advice needed.

The bottom line is that you subtract all your overheads from your turnover, and whatever that comes to is your £k earnings if you want to compare with other jobs. One person grossing (pre-tax) £18k might pay a fraction of the tax someone else grossing the same pays - and legitimately. Someone paying £5k on advertising, for example, will pay less tax than someone who doesn't advertise, assuming all other overheads are the same (which they won't be)).

Exactly, if someone in full-time employment is earning say £25k, (which i personally would be happy with) they will be paying more tax than an ADI so it balances out a little, with tax deductables


When i say STOP, I can only mean ONE thing!

Part 1 - Passed Sept 2003
Part 2 - Passed Nov 2003
Part 3 - Failed Aug 2004
Part 3 - Passed Jan 2005

http://www.hayleys-driving-tuition.co.uk

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#39 02-07-12 19:53:01

www.1waydriving.net
Member
From: Wakefield
Registered: 29-06-12
Posts: 31
Website

Re: Going Full Time as an ADI, advice needed.

And be aware that it is difficult in the current economic climate, record amounts of youth unemployment and parents staring down the barrel of redundancy do not help. Just make sure the work is out there in your area and be a good instructor and work hard.


www.1waydriving.net

Driving Lessons Wakefield and Dewsbury - www.1waydriving.net

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