Private tutor not paying tax??

[Sudburyswan]

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, I am a teacher and also do a little tutoring on the side. I do a self-assessment tax return every year and any extra tax owed is deducted from my PAYE teacher salary the following year. When I first started tutoring, I couldn't believe the number of people who told me not to bother doing the tax return 🙄

Tutors are a luxury, just like cleaners. If you are able to pay for someone to tutor your children or to clean your house, you can afford to pay them sufficiently that it is worth their while also after tax.

this is not a victimless crime. Public services are in desperate need of money,

I hope the new government sorts out this black economy as soon as possible. And fines everyone who participates in tax fraud. I honestly cannot believe some of the comments here.

Mind your own bloody business! Stop trying to meddle in other people's lives, teachers don't get paid enough as it is.

You think people like this guy are going to make the difference?

Ever ordered anything from Amazon?

Get a life!

You’re jumping to conclusions based on that one sentence, I freelance and would say “I don’t do that” as someone else does it for me, you have no idea if he means just doing a tax return or paying tax.

The NHS would take that 15%, spend it, and still claim to be chronically underfunded. The entire system needs rethinking including the attitude of people that it’s “free”.

Not your circus not your monkeys OP. Keep your nose out.

Why not raise it with him, before deciding to report him? I imagine the tax he should be paying (if he isn't) is probably less than the cost of HMRC investigating. And be prepared for his tutoring fees to go up, to cover the tax, assuming he doesn't just decide that the income isn't worth the paperwork.

Brexit was a foolish choice by the British electorate, but no one is claiming that we have lost £100 billion a year in tax revenue as a result! The most pessimistic projected impact is that tax revenues are £40 billion less than they would have been if our economy had continued to grow at the rate we (and our EU peers) were at the time we left. But as all EU economies are underperforming measured against that metric as well, even that’s not a ‘real’ loss. I’d be interested to see the analysis behind the £100 billion number.

Back on topic, yes, the income should probably be declared. But I don’t really think it’s the OPs position to do nothing about it…while our anti-corruption Minister is being investigate for corruption abroad I think there are bigger fish to fry.

You can tell HMRC you have additional income and get it included in your tax code... it doesn't mean he's necessarily evading tax.

Or to be honest the self assessment for him would probably be really easy, his employment income would automatically fill itself in and then he'd literally just input £4k or whatever as self employed income. If you were wrestling with yours maybe you made it look so much more complicated he genuinely thought it was something different.

I pay all my taxes, always have. We pay VAT on all plumbing jobs when needed and get a proper invoice so we know that all tax is paid.

it is the principle of this, everyone has to pay their share. If you earn money, you pay tax on it. If you pay someone, you get an invoice on that (this includes tutor, cleaner, nanny, chef, personal trainer or whatever you consider essential in your life - we cannot afford any of those).

If everyone pays the taxes they owe, we will get more funding for public services.

None of your business!!

Yep almost identical thread yesterday!! What is wrong with people?!

What a busy body you are.

This is absolute bollocks, one half of this sentence has nothing to do with the other.

That wasn't my question...

NONE OF YOUR BUSINESS!!

Be so for real right now

I'm glad I don't have to do my taxes either, my accountant is a lifeline!

This is the one I’m looking at
https://ifamagazine.com/labour-and-conservatives-plan-massive-expansion-of-tax-investigations-where-will-hmrc-crack-down/

“Shadow Chancellor Rachel Reeves announced in April that Labour would invest £555m into HMRC investigations, funding the recruitment of more tax inspectors to focus on complex tax evasion and avoidance cases. This is projected to raise an extra £700m in tax in its first year and £5.1bn per year by the end of the next Parliament.
Steven Porter, Partner and Head of Tax Disputes and Investigations at Pinsent Masons, says that the areas of investigation HMRC may look to target under a Labour government include:”

1. Investigations of high net worth individuals (£2.7bn seized in 2023)
2. Greater investment in Artificial Intelligence - this is to better process the >9.5 million disclosures of data about UK taxpayers from overseas tax authorities- again who in U.K. hides money abroad? The wealthy
3. A far tougher non-dom system- inspired by Mrs Sunak’s massive non dom wealth & tax avoided of £1m per month and others like her as well…
4. Multinational businesses with costs centres overseas (£1.6bn seized in 2023, think we can agree that’s the tip of an iceberg)

Those 4 are the most wanted list for tax avoidance. Regular people aren’t even on the radar because it costs more to chase pennies than pounds.

Wow I bet you lot snitched on everyone in Covid times. 🤣

Leave the guy alone. I hope none of you pay your builders cash.

I hope they crack down properly on all sorts of tax evasion. Corporate and personal.

if they add proper fines on everyone avoiding tax and everyone paying others without an invoice, the exchequer would have a lot more money.

Our children are being locked out of education and totally failed even if they have the slightest sen
Our schools cannot accommodate or cope

I'm hugely thankful for these tutors and I couldn't care less about this, I'm just thankful my first child didn't need tutors because I couldn't afford them.

I would not report him to HMRC. However, I've always had a small self-employed income and complete a tax return.

Yes I pay tax on both that and my regular job too, which is PAYE, always have. Why would it be okay NOT to declare it! Some people here tend to think it's okay, or if you're working in a job and you're paying tax on that, then it's okay. If I had an extra couple of thousand added onto my regular job, I'd sure be paying tax on that, so it's only fair (and legal) that I should pay tax on my self-employment income.

What a busybody you are. He pays enough tax on his full time job earnings.