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Full time self employed tutor - tax credits and general advice needed please

Discussion in 'Private tutors' started by ruby_neurotic, Feb 22, 2013.

  1. Hi,
    I'm going to declare myself as a self employed tutor and I need to work a minimum of 16 hours to still be eligible for tax credits. Does this mean that I have to have 16 students at one hour each or can I have 8 students and claim travelling time and preparation/marking time and still make up required 16 hours? So 8 students make the 16 hours because of travelling/preparation time as well as the hour lesson time? I hope that makes sense.
    Also what records do I need to keep? Do I need to keep a receipt for each student or is a working diary enough? Really not sure how this all works. I'm trying to get some research done so it is all in place for when I start.
    Any advice would be greatly appreciated,
    Thanks
     
  2. Hi,
    I'm going to declare myself as a self employed tutor and I need to work a minimum of 16 hours to still be eligible for tax credits. Does this mean that I have to have 16 students at one hour each or can I have 8 students and claim travelling time and preparation/marking time and still make up required 16 hours? So 8 students make the 16 hours because of travelling/preparation time as well as the hour lesson time? I hope that makes sense.
    Also what records do I need to keep? Do I need to keep a receipt for each student or is a working diary enough? Really not sure how this all works. I'm trying to get some research done so it is all in place for when I start.
    Any advice would be greatly appreciated,
    Thanks
     
  3. Hi,

    When you are self employed you need to count all the work you do to make your business run. So you can count preparation and marking time, travelling time, as well as all the admin you will end up doing- banking, ordering resources, keeping accounts, advertising etc. One thing to consider is if you will be tutoring term time only, as for tax credits you need to average out 16 hours per week. So I aim for 22 hours term time only as that averages out as 16 hours per week. If you claim CTC for child care in term time only they will adjust this figure so that it's pro rata too.
    The other thing to consider is that the UC are looming, and the government are yet to decide what conditionalities they will impose on working people claiming UC, from which CTC will go into. There are current assumptions that if you are SE, you will be required to earn '35 hours at minimum wage' as a minimum if you still want to claim for UC. So, if you still want to work 16 hours, or anything less than 35 hours you need to charge enough to cover the proposed cost. Like I said though, the govt has yet to decide so who knows what they are thinking.
     
  4. avalon1

    avalon1 New commenter

    Hi,
    I work at least 24 hours a week, but only teach about 8 hours of lessons. The rest of my time is spent planning lessons, banking, keeping a spreadsheet and account book of all my income and miles travelled, then of course there is the travelling to lessons and advertising, checking my emails at least twice a day and checking my tutoring leads. I also have to spend time keeping up to date with any GCSE changes and NC changes in my own time - which may include going on courses. You will easily go over 16 hours with only a handful of pupils! Make sure that you factor all of this in when you decide on a price to charge. With regards to the previous post, my work is not just term-time in fact some students double up their lessons in the holidays especially if an exam is coming up. A lot of looking and advertising for new students is done in the summer and also planning - so even if the money that you have coming in may be less, the time spent working will not be. Hope this helps. Oh and don't forget filling in your tax return!!
    I sure some people spent much less time, but I like to do things properly and offer a quality service.
     
  5. Thanks so much for taking the time to respond. Can you please tell me what paperwork you keep? Receipts for every lesson? Petrol receipts? Proof of advertising? etc
    Thanks again!
     
  6. Georginalouise

    Georginalouise New commenter

    I keep a note in my diary of who pays me what and when. All my income goes in to a business account. All my expenses come out of that account and I transfer the balance to my personal current account. I keep invoices and receipts for my expenses (if I can't prove it, my accountant doesn't let me offset it against tax - she is strict!) and I claim mileage rather than car expenses (again on the advice of my accountant). I load it all on to an Excel spreadsheet and send the spreadsheet to the accountant who will occasionally ask me for proof of a particular expenditure. My accountant is ex-iInland Revenue and costs me £200 per tax return but to be honest, she saves me more than that and so I think she is worth the expense. You can claim for part of your phone bill. mobile phone, internet access, parking, sandwiches on the hoof etc as well as the obvious like stationery, textbooks, stamps, business cards, website hosting.
     
  7. I've been a self-employed tutor since Sept 2010 - I found the resources on the First Tutors website invaluable. They had a template spreadsheet for record-keeping, with room for income from students and expenditure on travel, stationery, office costs (ie a proportion of your household bills if you work from home) and other expenses. From this I can quickly get the figures to fill in a self-assessment tax return every year. I keep receipts for all expenses like advertising, text books, stationery, and do travel at 40p per mile as it saves getting into pro-rata petrol and car maintenance costs. Accurate record keeping is very important, I think spreadsheets are the best way to go - good luck!
     
  8. bananamoore

    bananamoore New commenter

    You can actually claim 45p per mile (for the first 10000 business miles) - make sure you change your spreadsheet!
     
  9. alfredrussell

    alfredrussell New commenter

    Hi Purple. Is that spreadsheet still available? I can't locate on the site.
     

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