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Private tutor not paying tax??

232 replies

Sudburyswan · 06/01/2025 21:37

Hi,

we use a private tutor for our son -just an hour per week. A nice guy who works at a local secondary school. He also tutors some friends kids and I’d estimate he’s earning £100 during term time on top of his teaching salary.

When he was here last weekend I was working in my tax return and I was moaning!! He made the comment “ I’m glad I don’t have to do that”- well surely he should be?

I know he’ll get the £1000 trading allowance but I still reckon he’s got 3-4 k of potential undeclared income. We pay him by bank transfer too.

I’m in two minds whether to report this.

surely hmrc’s systems will pick up this money entering his account??

OP posts:
slightlydistrac · 06/01/2025 22:11

bravefox · 06/01/2025 21:48

Does tutoring attract VAT? Surely it's a luxury...

The current threshold for registering for VAT is £90k so I can't imagine that would apply here lol

LoremIpsumCici · 06/01/2025 22:12

SirChenjins · 06/01/2025 21:53

If he isn’t declaring it then he should - the amount of undeclared income in this country is obscene and people seem to forget that services that they expect do have to be paid for somehow. HMRC are bringing in 5000 more compliance officers but it’s a drop in the ocean and sadly services will continue to struggle because taxes aren’t being paid on income.

services are struggling because Brexit is now costing us £100bn per year in lost tax revenues

spending more money chasing pennies is a waste of time when we should be rejoining the EU and is why we all need to hold on for this roller coaster is falling fast with no guarantee of going back up.

SchoolDilemma17 · 06/01/2025 22:12

MyBoiledEggIsTooSoft · 06/01/2025 22:10

I cannot believe all people who believe that it is ok to cheat on taxes. What if everyone does this?

We need all the money we can have in this country, people get refused medical treatment on the NHS, schools are underfunded, and state pensions are barely possible to live on.

Everyone need to pay their share.

How do you know he is cheating? He made an off hand comment! Maybe he did his tax return ages ago not last minute like OP

Interested in this thread?

Then you might like threads about these subjects:

NeedToChangeName · 06/01/2025 22:12

hamsandyams · 06/01/2025 21:52

I hope all of those saying to mind your own business never complain about the state of public services in this country - as people like this are part of the problem.

If everyone in this scenario paid the right tax, then we could give the NHS 15% more funding (or c £23 bn). That’s more than if we collected unpaid tax from every large corporate and wealthy individuals combined.

Absolutely report him, and if he’s done nothing wrong nothing will come of it. If he has, then he can pay his dues and help stop old ladies lying for hours in the street because hospitals and ambulance services are underfunded.

I agree

Tax evasion is not a victimless crime. We all suffer

SilenceInside · 06/01/2025 22:13

No one knows if this guy is evading tax....

poemsandwine · 06/01/2025 22:13

TheDogsMother · 06/01/2025 21:43

Maybe he pays an accountant to do it.

This! You're jumping to conclusions. I hate doing tax returns. They're a PITA. I have someone do it who finds it much easier than I do.

MyBoiledEggIsTooSoft · 06/01/2025 22:13

Not attracting VAT but he should pay tax on it. I cannot believe some people here. Tutoring is a luxury, not everyone can afford this.

if somebody does a job and earns money, he needs to pay his taxes. If it then isn’t worth his while, he will need to increase his prices.

m00ngirl · 06/01/2025 22:13

Sudburyswan · 06/01/2025 21:37

Hi,

we use a private tutor for our son -just an hour per week. A nice guy who works at a local secondary school. He also tutors some friends kids and I’d estimate he’s earning £100 during term time on top of his teaching salary.

When he was here last weekend I was working in my tax return and I was moaning!! He made the comment “ I’m glad I don’t have to do that”- well surely he should be?

I know he’ll get the £1000 trading allowance but I still reckon he’s got 3-4 k of potential undeclared income. We pay him by bank transfer too.

I’m in two minds whether to report this.

surely hmrc’s systems will pick up this money entering his account??

You sound like the worst type of person. Speechless.

NeedToChangeName · 06/01/2025 22:13

LongDarkTeatime · 06/01/2025 22:08

It’s private education provision so, yes, he should be paying tax

But only if he earns above the VAT threshold, or chooses to register voluntarily

SirChenjins · 06/01/2025 22:14

LoremIpsumCici · 06/01/2025 22:12

services are struggling because Brexit is now costing us £100bn per year in lost tax revenues

spending more money chasing pennies is a waste of time when we should be rejoining the EU and is why we all need to hold on for this roller coaster is falling fast with no guarantee of going back up.

Edited

Chasing pennies? If only…take a look at the HMRC tax gap figures

LoremIpsumCici · 06/01/2025 22:15

SirChenjins · 06/01/2025 22:14

Chasing pennies? If only…take a look at the HMRC tax gap figures

The one where 99.9% is caused by the richest 0.001%? Yes I’ve seen the figures.

Flopsy145 · 06/01/2025 22:15

Don't be such a busy body jeez. Poor guy is earning sone extra cash on top of a job he's already paying tax on, so if he's not declaring it it's his business not yours. Why on earth would you report someone, especially in this cost of living crisis with shit governments trying to do us over constantly, for making a a few extra thousand a year. Ridiculous.

Owwwwwww · 06/01/2025 22:16

Jackiebrambles · 06/01/2025 21:45

Do you really think HMRC can look in our accounts?!

Bonkers!

SirChenjins · 06/01/2025 22:16

LoremIpsumCici · 06/01/2025 22:15

The one where 99.9% is caused by the richest 0.001%? Yes I’ve seen the figures.

Nope - look again.

baytreelane23 · 06/01/2025 22:17

I wonder if the next tradesman who offers you a discounted quote for paying cash you'll do the same for them? 🫠

YellowPixie · 06/01/2025 22:18

Acc0untant · 06/01/2025 21:42

That's all he said... "I'm glad I don't have to do that?"

Maybe he means physically doing a tax return. Maybe he pays someone else to do it.

Quite. Maybe his wife/brother/sister/housemate is an accountant or just loves doing tax returns.

TheHateIsNotGood · 06/01/2025 22:18

I've got a little John McEnroe implanted in my brain, every so often it goes off and says "you cannot be serious".

It's just popped up.

Owwwwwww · 06/01/2025 22:19

He might stop tutoring or raise his rates if he has to pay income tax on his earnings from it.

Growlybear83 · 06/01/2025 22:20

It's none of your business! And you don't know what he meant by his comment - he may well have someone else to complete his tax return for him. I'm self employed and I would have no more idea of how to complete my self assessment than I would flying to the moon - my husband does it for me and I fill in whatever he tells me.

Peachy2005 · 06/01/2025 22:21

OMG, get a grip - good tutors are like gold dust, why would you want to mess with the guy’s life?! Just quit the tutoring if you begrudge what he is earning. If he was really on the fiddle, he would only want you to pay him cash in hand. He wouldn’t want the trail of you paying him by bank transfer, in case he was audited. Give your head a wobble, as they say on here…

MyBoiledEggIsTooSoft · 06/01/2025 22:21

SchoolDilemma17 · 06/01/2025 22:12

How do you know he is cheating? He made an off hand comment! Maybe he did his tax return ages ago not last minute like OP

Edited

If he isn’t cheating, then there is no harm done?

Eyerollexpert · 06/01/2025 22:21

OMG if I knew the tutor I would tell him to sack you WETF.
Tutors who do it officially command £35 per hr bet you're not paying that???? If you are paying less than that say £25 [would you pay £35 so he can give some of it to the tax man? Also he could claim use of his car,mileage, text books, printing, admin, prep time if he was doing it self employed plus paying extra into his pension, self employed ppl know exactly how to maximise expenditure and minimise profit, bet he's great with your kid and you want to shaft him. Admirable.

Frostyaf · 06/01/2025 22:22

Ironically the OP will end up paying more as if he has to pay tax (assuming he isn't) he will raise his prices.
Or more likely, he will stop tutoring as it will be too much hassle dealing with arsey parents in both jobs.

SheridansPortSalut · 06/01/2025 22:22

You don't actually know what he meant. Maybe he has an accountant. Maybe his partner handles the tax returns. You're making assumptions.

bandicoot99 · 06/01/2025 22:22

This guy would be the least of my concerns. I pay top rate tax with no possibility to minimise my tax but I would never begrudge a poorly paid teacher who is working hard to make some extra money on the side if they decided not to declare that money, I would be firmly in the camp of 'not my business'. Yes, legally he obviously should be declaring it but I couldn't get worked up about this at all. This country needs lower taxes, more incentives for people to work hard and more efficient services. If you have an issue with it morally (despite no actual proof he's not declaring it) then just stop using his services.