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Paying Tax/NI

Discussion in 'Private tutors' started by favouredone1, Sep 6, 2019.

  1. favouredone1

    favouredone1 New commenter

    Apologies if this has been discussed elsewhere, I have scrolled through but I couldn't find a thread on my questions.

    I am thinking of going into tutoring 1 or 2 evenings a week and/or Saturday alongside the day job (Science Teacher). This could be through one of the tutoring agencies or by myself.

    My questions revolve around paying Tax/NI

    1) Correct me if I am wrong but my guess is that if I have to pay Tax/NI and I tutor through an agency then they will take care of that.

    2) If I tutor privately (i.e not via an agency) how would I pay Tax/NI?

    3) If I tutor by myself do I declare myself as self employed bearing in mind I still have the day job?

  2. AnotherDayTowardsRetirement

    AnotherDayTowardsRetirement Occasional commenter

    Are you planning on accepting cash for your services ?
  3. saluki

    saluki Lead commenter

    Contact Inland Revenue. You will have to fill in a tax return. This can be done online and only takes about 15 minutes. Inland Revenue already have details of your full time job and income from that is shown on the return. You have to agree that this is correct. Then there are sections for stocks and shares, income property, savings etc. If you have a significant amount of money you will need to fill those sections in. There are also sections for income from self -employment - these are the sections that you will need to fill in. You can lump all of your tutoring money together as one self-employed job. The Inland Revenue will then let you know if you owe them anything- within about 15 minutes of online submission!!
    It's all very straightforward. At one time I had two extra self-employed jobs on top of teaching.
  4. Rott Weiler

    Rott Weiler Star commenter Forum guide

    Self employment isn't a status attached to you, it's attached to a specific job or contract. HMRC looks at each income-earning contract you have and decides whether it is an employment contract or a self-employment contract (well, you have to decide which it is, but HMRC can challenge if they disagree).

    If people have several different jobs at the same time it's quite common for some to be employment and some self employment. In your case your teaching job would continue to be employment and taxed under PAYE rules and your private tutoring self employed under self-employment tax rules.
  5. Informant

    Informant New commenter

    Can't comment on employment through an agency, but if you're tutoring by yourself, then here's some good news....

    Since April 2017 HMRC introduced a trading allowance of £1000. You are only taxed on your profit, so you might deduct expenses for books, paper, maybe heating, phone calls, etc. This is so tedious for small traders like you, so the trading allowance says let's just call it £1000 for expenses. Consequently your first £1000 of self employed income is tax free. If your expenses are more than £1000 then you would submit the details and not settle for the £1000 trading allowance.

    To quote from HMRC website "If you’re starting a new self-employed business and expect your annual gross income to be no more than £1,000, you may not have to register for Self Assessment"
  6. suzette

    suzette Occasional commenter

    I have worked for both tutoring centres and also as a freelance tutor. When I was with the centres, you were self employed & so it was up to you to sort out your tax etc with HMRC. It was tricky at first because I was still temping & that was PAYE!

    I contacted HMRC as I was paranoid about getting it wrong, so I contacted them for help. Just to be on the safe side, I would say if in doubt contact them.

    I think it depends on the tutoring company as to whether their staff are self employed or PAYE, so check with them too.
  7. favouredone1

    favouredone1 New commenter

    Thank you all for the replies, they are really helpful.

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