PAYING TAX

SELF-ASSESSMENT

This section is primarily aimed at new tutors who have not been self-employed before. If you are already an experienced sole trader, you can skip to NECESSARY INFORMATION.

As a self-employed tutor, you will need to declare your earnings every year for taxation purposes. Unfortunately, The Profs cannot do this on your behalf.

If you are not already registered as self-employed with HMRC, you will need to do this via their website, within three months of the start of your first tuition placement with The Profs. We recommend doing this as soon as possible, as it can take them some time to process your registration.

You will be registering as a ‘Sole Trader’. If tuition is your only source of self-employed income, much of the registration form (and subsequent tax returns) will not apply to you.

Visas and the Right to Work

Not all visas allow the holder to be self-employed in the UK. For example, students on a Tier 4 visa can only work as employees. Unfortunately, if your visa does not allow you to work on a self-employed basis, you will not be able to join our network. Please check your visa status carefully!

Filing your Return

The tax year runs from 5th April, and the deadline for filing your tax return (the declaration of your earnings for the year) is 31st January. So, for example, the deadline for the tax year 5th April 2019-5th April 2020 will be 31st January 2021.

When it comes to calculating your earnings, we recommend simply totalling the value of your payment orders on The Profs’ platform. Alternatively, payments from The Profs should be clearly labelled in your bank statement, so you can always total up your payments this way. However, occasionally the reference changes to the name of our payment provider, ‘Transferwise’, due to issues with their system, which are outside our control. The Profs’ platform is, therefore, the best way to make sure you are not missing anything.

TOP TIP – SAVE YOUR RECEIPTS!

Stationery, printing costs and other expenses incurred for the sole purpose of your tutoring work can be off-set against tax, so be sure to keep your receipts.

National Insurance Number (NI)

This can be found on any tax return, payslip or P60 form. If you do not have access to this number in any form, visit the government’s website.

Unique Tax Reference Number (UTR)

This will be supplied by HMRC once your application to register as a sole trader has been approved. We will need to receive these within three months of the start of your first tuition placement, so it is best to apply sooner rather than later.

VAT

Education services provided by a self-employed individual are exempt from VAT. Provision of tuition through a limited company will attract VAT so, in this instance, we would recommend that you seek advice from an accountant on your specific case. The platform we use does not enable us to submit VAT invoices to clients, so if you are required to do this for any reason it will need to be arranged separately.