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HMRC is now targetting Private Tutors!

Discussion in 'Private tutors' started by janeyann17, Jun 17, 2011.



  1. HM Revenue and Customs (HMRC) has announced that it will target three further specific groups of trading activity during 2011/12 where the taxman perceives that tax is being underpaid. They are private tutors and coaches, including both academic and fitness instructors; e-marketplace traders including eBay who have not fully declared their income from this activity and tradesmen who have not been covered by the recent opportunity extended to plumbers to regularise their tax affairs. The announcement does not give a date or even a timetable for when these campaigns will start, and does not give any specific promise of an amnesty for those who come forward to regularise their affairs. HMRC has also announced that it has acquired powerful web trawling tools to identify mismatches between the lifestyle and expenditure of individuals and businesses and what is declared for tax purposes. Heather Taylor, a member of Grant Thornton’s Tax Investigations team in Birmingham, said: “HMRC has been using its information powers and has invested in cutting edge technology to research several areas of industry and has begun to apply this information to collect undisclosed tax.”


    I thought I would share as it is important because I would hate people to be investigated by the HMRC.
     


  2. HM Revenue and Customs (HMRC) has announced that it will target three further specific groups of trading activity during 2011/12 where the taxman perceives that tax is being underpaid. They are private tutors and coaches, including both academic and fitness instructors; e-marketplace traders including eBay who have not fully declared their income from this activity and tradesmen who have not been covered by the recent opportunity extended to plumbers to regularise their tax affairs. The announcement does not give a date or even a timetable for when these campaigns will start, and does not give any specific promise of an amnesty for those who come forward to regularise their affairs. HMRC has also announced that it has acquired powerful web trawling tools to identify mismatches between the lifestyle and expenditure of individuals and businesses and what is declared for tax purposes. Heather Taylor, a member of Grant Thornton’s Tax Investigations team in Birmingham, said: “HMRC has been using its information powers and has invested in cutting edge technology to research several areas of industry and has begun to apply this information to collect undisclosed tax.”


    I thought I would share as it is important because I would hate people to be investigated by the HMRC.
     
  3. Anonymous

    Anonymous New commenter

    Good thing I keep upto date accounts. I do of course offset mileage as a business expense which does add up!
     
  4. hhhh

    hhhh Lead commenter

    Out of interst, how can they tell if someone is paid in cash, anddoesn't have many clients? And no, that doesn't pply to me, I am a one to one tutoe, paid bythe council so I do pay tax PAYE in case anyone's reading, you are welcome to check with my school...
    Interestingly enough, my job is ending in Aug as are those of most one to one tutors, well just think they can pay the tax inspectors with all the money they save by removing tutors from our most vulnerable children.
     
  5. yeah see I find all this a bit odd as I have just graduated but throughout my time at university I have worked as a private tutor but my earnings averaged out at £10-£20 a week throughout the whole year as I have 7 or eight clients march to june and very little for the rest of the year so when I phoned HMRC they didn't care and said not to bother filling in any forms or do anything. So what is the margin when I should start paying tax as they didn't really tell me? I do find this all a bit unclear as I am clearly trying to pay tax and they arent letting me but if i was investigated would I end up with a big bill?
     
  6. langteacher

    langteacher Occasional commenter

    I'd get it in writing. What evidence do you have that you have been told not to bother? If you have it in writing that would be better
     
  7. Yeah they wouldnt give me anything. I have the exact time and date I called and had to give them loads of details when I spoke to them such as national insurance number etc so I presume they keep a record of all that stuff. I certainly have a printout of when i made the phonecall anyway. I have decided not to continue tutoring as I am really worried about the whole tax thing and dont really understand it so I would prefer to do without the money and get another job than to have to pay a huge bill for getting it wrong.
     
  8. Anonymous

    Anonymous New commenter

    Tax isn't that difficult. You need a self assessment form. It needs to be filled in online by Jan for any earnings LAST financial year (2010 - 2011). Take into account your P60's.
    Income - money you have earnt. Expenditure - especially mileage. That is a must. Mileage really adds up.
    Keep records - I don't give receipts but I do know what I've received.
    You will get a tax bill / refund. Needs paying by April 2013 (for Tax year 2010 - 2011). Think this is right but that needs checking. Might be in 2 halves.
    Also think about national insurance.
    HMRC will check on people. They have an idea of what you should be earning but tutoring is such a funny business with different income levels (a bit like supply teaching)
     
  9. langteacher

    langteacher Occasional commenter

    You may have a record of date and time etc and even a print out but all that proves is that you called them. Unless their calls are recorded in which case the evidence is there. It is possible that the assistant could have been wrong.
    If private tutoring is something you enjoy the don't let tax put you off
     
  10. I agree! Sorting out your tax really isn't difficult and better to get to grips with it sooner rather than later. I've been doing self-assessment tax returns for years now and as my earnings to-date have been under the allowance, I have usually managed to get a refund on tax paid on savings etc. It's worth it for the peace of mind. Don't be afraid of self-assessment - keep records and receipts as you go along. I sorted my years tax affairs in one afternoon this year, filled it all in online - job done!
     
  11. Hi, can I check about claiming for mileage? I went on a short course that HMRC run to help fill in your tax return, they said if I'm only seeing one student eg going to a lesson and then coming home, I wouldn't be able to claim mileage, only if I'm travelling to more than one student. I this correct? just want to check as in the past with other enquiries you can get different answers each time you ring HMRC!
     
  12. Anonymous

    Anonymous New commenter

    Why shouldn't you get mileage? It is a business journey.
     
  13. It all comes down to what is your place of work. HMRC do not want to concede that your home is your normal place of work. If they did, it would be as you say. So going from home to 1st student is normal 'commuting' to work; going to 2nd student is business (one palc eof work to another). coming homeyou would probbaly only be entitled to the mileage for studen t2 minus student one travel (assuing that student 2 is further away from home than student one).
    Plus they probably don't understand what a private tutor is as yet.
     
  14. Mine's really confusing as I do 1-1 tutoring at a school and then come home via about 3 more tutees! Think I know how to do the mileage but it's all a bit confusing!
     

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