Thats only for tax, the instructor can get payed for ground school.
You can charge how ever much you like for the car you just have to declare it and anything over the rate will get taxed.
It doesn't change the fact that your not charging for your in flight instruction.
It also doesn't stop the school paying for your medical including transport, your instructors renewal test, your pish seminar including HOTAC, transport etc. headset every three years, license renewal, all your flying kit, minus VAT of course.
Personally I would be able to kick the arse outa 1.5K in 3 years and never earn a penny. All my light aircraft ratings and currency are taken care of for 50 hours instructional flying. Which I reckon is pretty good value for something i enjoy anyway. If you add VAT and 40% tax onto that it gets silly.
If your an CRE etc crack on, 2.5k's worth wouldn't be to hard to justify.