Financial Planning - Making Training Affordable

Funding Your Instructor Training.

Training fees are set by each training provider, and DVSA charges its own test and registration fees. There is no government grant just for ADI training, but there are other ways to fund it: paying per stage, provider payment plans, Jobcentre support, Armed Forces credits and start-up funding.

£303 in DVSA test fees
Three DVSA tests to qualify
Training fees set by each provider

Cost Breakdown

How much does ADI training cost?

Training fees are not fixed. GOV.UK says “Fees for driving instructor training vary and are set by training organisations”. DVSA fees are fixed and listed on the GOV.UK ADI fees page. Here is what you pay for:

Part 1: theory test preparation

Set by provider

Study materials, question banks and optional courses to prepare for the ADI Part 1 theory and hazard perception test.

Part 2: driving ability training

Set by provider

Practical training to reach the standard of driving assessed in the Part 2 test. How much you need depends on your current driving.

Part 3: instructional ability training

Set by provider

Training in lesson planning, client-centred learning and the teaching techniques assessed in the Part 3 test.

DVSA test fees

£303

Part 1 theory test: £81. Part 2 driving ability test: £111. Part 3 instructional ability test: £111. You pay the full fee again if you do not pass a test and want to retake it.

DVSA registration and checks

£305.40

First ADI registration (your 'badge'): £300. Criminal record check: £5.40, plus £12 if you need to verify your identity at a Post Office.

Trainee driving instructor licence (optional)

£140

Not required to qualify. See our trainee licence guide to decide whether it suits you.

Get written quotes before you commit. Find trainers on the official register using GOV.UK's driving instructor training search, ask what each price includes and whether you can pay per stage, and budget for retakes: DVSA charges the full fee again for each one. Our guide to becoming a driving instructor explains each stage.

Finance Options

How to fund your training

There is no government grant specifically for ADI training, and official pages for Advanced Learner Loans, the Adult Skills Fund, Skills Bootcamps and Free Courses for Jobs do not list it. These are the routes worth checking:

Personal savings, paid per stage

ADI qualification is split into three DVSA tests, so ask your training provider whether you can pay for each stage separately rather than the whole course upfront. That way you only commit to the next stage after passing the previous one. DVSA test and registration fees are paid to DVSA, separately from training fees.

Ask whether you can pay for the next stage only once you pass

Payment plans from training providers

Some ADI training providers offer instalment plans or finance through a third party. Ask what is available before committing. If interest applies, check the APR and the total cost of borrowing, and confirm the cancellation terms: what you would owe if you decide not to continue.

Ask your training provider about payment plan options before committing

DWP / Jobcentre Plus support

If you claim Universal Credit and have accepted your Claimant Commitment, ask your Jobcentre work coach about the Flexible Support Fund. It is a discretionary, locally managed fund that can pay for training that improves your job prospects. Awards are not guaranteed and no DWP guidance confirms it will pay for ADI training, so get an answer from your work coach before you commit to a provider.

Ask your work coach specifically about the Flexible Support Fund

Armed Forces Enhanced Learning Credits

Service leavers and veterans may be able to use Enhanced Learning Credits (ELC) towards a course that leads to a nationally recognised qualification at Level 3 or above, with an MOD-approved (ELCAS) provider. The lower tier pays 80% of course fees up to £1,000 per claim and needs at least 4 years' qualifying service before 1 April 2017, or 6 years if you enlisted on or after 1 April 2013. The higher tier pays up to £2,000 per claim and needs 8 years' service. You can make up to 3 claims, and you must claim before the course starts. If you left on or after 1 April 2016, your claims expire 5 years after your last day of service (10 years if you left before then). Check the training provider is on the ELCAS approved list before you book.

Up to £2,000 per claim with an ELCAS-approved provider

The King's Trust (ages 18 to 30)

The King's Trust (formerly The Prince's Trust) runs an Enterprise programme for 18-30 year olds starting a business. You can apply for a Test My Business Idea grant of up to £500, and for up to £30,000 in total from a Start Up Grant of up to £5,000, which you do not repay, and a Start Up Loan of £500-£25,000, which you repay with interest. All funding is subject to approval. The funding is for starting a business, so whether any of it can pay for your qualifying training is for The King's Trust to decide.

Up to £30,000 combined, subject to approval

Career Development Loans: closed

Government-backed Professional and Career Development Loans closed to new applications on 25 January 2019. Some training providers offer credit through a finance company instead. These are commercial agreements between you and the lender, so read the terms carefully and check the total cost of borrowing.

No longer government-backed. Check any provider finance terms carefully

Tax Implications

Can you deduct training costs from tax?

HMRC does not allow you to deduct initial ADI training costs

HMRC's own guidance uses a would-be ADI as its example. In BIM35660 (Example 8), an unemployed person takes a course to become an approved driving instructor and cannot claim the cost, because the course provides new skills for a new business that does not yet exist. The pre-trading expenditure rule (BIM46351) does not change this. It only covers costs that would have been allowable after trading began, and these would not have been.

Once you are qualified and trading as a self-employed ADI, training that updates your existing skills, such as CPD courses and standards check preparation, is likely to be allowable. HMRC treats training that updates expertise in your existing business area as a revenue expense.

You can also claim allowable business expenses, such as the business share of fuel, car maintenance and insurance, once you start trading. Orbit's built-in expense tracking and HMRC Making Tax Digital integration makes this straightforward from day one.

Return on Investment

When will I earn back my training costs?

There is no standard payback figure. It depends on three things, and you can work out each one before you commit:

DVSA fees

£608.40

Parts 1-3, first registration and criminal record check, if you pass each test first time

Training fees

Varies

Set by each training provider, so get written quotes

Your income

Your figures

Depends on your lesson price, hours taught and costs

Do the maths: Model your likely income with our free earnings calculator, and read our guide to what driving instructors earn before you weigh it against your training quotes.

FAQ

Frequently asked questions

Can I get government funding for driving instructor training?
There is no government grant specifically for driving instructor training, and official pages for Advanced Learner Loans, the Adult Skills Fund, Skills Bootcamps and Free Courses for Jobs do not list ADI training. If you claim Universal Credit, ask your Jobcentre work coach about the Flexible Support Fund. It is discretionary and can pay for training, but ADI training is not guaranteed. Armed Forces service leavers may be able to use Enhanced Learning Credits (up to £2,000 per claim) with an MOD-approved ELCAS provider. The King's Trust offers grants and loans to 18-30 year olds starting a business, subject to approval. Professional and Career Development Loans closed to new applications on 25 January 2019.
Can I claim ADI training costs as a tax deduction?
No. HMRC's Business Income Manual (BIM35660, Example 8) uses an unemployed person training to become an approved driving instructor as its example: the course cost cannot be claimed because it gives new skills for a new business that does not yet exist. The pre-trading expenditure rule (BIM46351) does not help, because it only covers costs that would have been allowable once trading began, and these would not have been. Once you are trading as an ADI, training that updates your existing skills, such as CPD, is likely to be allowable.
How long does it take to become a driving instructor?
It depends on how quickly you pass each of the three DVSA tests, your current driving ability, how much time you can give to training, and test waiting times in your area. Our guide to becoming a driving instructor walks through each stage.
Is driving instructor training worth the investment?
That depends on what you would charge, how many hours you would teach, your running costs and demand in your area. Get written training quotes, add the DVSA fees, then model your likely income with our free earnings calculator before you commit.
Can I train part-time while working another job?
Yes. You can study for the Part 1 theory test in your own time. For Part 2 and Part 3 training, ask each provider whether they can schedule sessions around your work, for example evenings or weekends. Training part-time usually means it takes longer to qualify.
Do training providers offer payment plans?
Arrangements vary by provider, so ask before you sign up. Ask whether you can pay per stage (Part 1, Part 2 and Part 3 separately) rather than the full amount upfront, so you only pay for the next stage after passing the previous one. If you borrow through a provider's finance partner, check the interest rate (APR), the total cost of borrowing and what you would owe if you stop training.

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