Do driving instructors pay taxes?

Gian-Pa · 22-12-2009 12:13am #1

I was wondering this time ago when I was taking lessons as I was paying them cash and received no receipt or anything.
Maybe I never asked.

But after more than 10 lessons with different instructors (of different schools) they never ask or gave me any paper of the payment. What about VAT and all that sort of stuff? Are they contractors or something like that?

any one can kindly explain this?

Random · 22-12-2009 1:04am

Have you asked for a receipt?

tony1kenobi · 22-12-2009 1:09am

They pay motor tax.

DriveSkill · 22-12-2009 11:54am

The vast majority of driving instructors are self-employed and therefore are subject to the same tax regulations as every other self-employed person - i.e. they are required to file a tax return every year. There are a small minority who may work for some of the larger schools as PAYE workers.

The rules on VAT depend on the income of the instructor. If you go above a certain threshold (€37,500) then you MUST be VAT registered, if you are below the threshold you have the option to register or not. Advantage is you get to claim back VAT on items you purchase for the business - disadvantage you need to file VAT returns.

There is currently no legal requirement for instructors to provide receipts but at least some do

I think this will come into force at some point in the future as with the taxis now.

The ADI process also required every instructor to have a 'Tax Clearance Cert' which is basically a statement from the Revenue saying the person's tax affairs are in order.

Do driving instructors pay taxes?

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