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Original poster

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:
Feelingstrange2 · 06/01/2025 22:52

SuffolkBargeWoman · 06/01/2025 22:48

@bravefox and @Feelingstrange2 No-one is talking about VAT. The issue is income tax

I know! I was replying to bravefox.

Indeed he's likely to have to pay income tax on it.

I'd have helpfully mentioned to him that tutoring was taxable and not to worry, its actually quite easy to do. Plus he'd get a £1000 trading allowance deduction.

YourAzureEagle · 06/01/2025 22:52

Feelingstrange2 · 06/01/2025 22:46

You don't have to register if you don't meet the VAT threshold anyway

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And you'd be doing a hell of a lot of tutoring to hit that!!

Whatthefuck3456 · 06/01/2025 22:52

Now you’ve used him to help your son your thinking of reporting him, I’m glad I don’t know you.

Interested in this thread?

Then you might like threads about these subjects:

General education General money Tutoring
mumsthewordi · 06/01/2025 22:54

Trust me he isn't the problem as far as unpaid tax , look to your local big corporations first - would you report them too ? Damn capitalism has got you well and truly deluded

Leave the poor man alone

dutysuite · 06/01/2025 22:54

Xcx

TheHateIsNotGood · 06/01/2025 22:54

OP - maybe you should just ask him/her straight out next time they come to tutor your child whilst be absolutely honest about your outrage regarding your assumptions about their tax affairs.

Go on, I dare you - you know you want to - and please update here.

Tryingtokeepgoing · 06/01/2025 22:55

LoremIpsumCici · 06/01/2025 22:45

I think it was in Bloomberg and then OBR wrote about it, much of it comes from trade having tanked by 15% when it should have increased instead. The loss of taxes generated by trade (the customs tariffs, VAT, corporation taxes) and the loss of jobs (and the individual taxes paid) caused by the loss of trade amounted to more than the £40bn number. I will try and find it, I think it was published last spring.

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Oh well then that’s probably the OBR estimate that output is £100 billion lower, but that’s not the same as tax revenue, as our tax to GDP ratio is around 37% I think. Which would give hypothetical tax loss of around the £40 billion. Possibly even the same as the fabled black hole 😂

MillyGoat · 06/01/2025 22:57

ForMintUser · 06/01/2025 22:48

But it’s HMRC’s job to catch tax evaders out not that of some busybody.

If the tutor is not paying tax he’s taking a big risk being caught by HMRC. Not something I would do but it’s his risk to take.

Also think about it practically, let’s assume the tutor earns £5k a year tutoring, doesn’t declare it, and is a 40% taxpayer. So underpaying by £2k.

How many telephone operators do you want HMRC to employ to take note of one comment made in passing, could have been misheard or misinterpreted. How many tax inspectors do you want conducting investigations for this trivial nonsense, lots of which will amount to nothing. You’ll easily rack up more in costs than you’ll recover.

Ultimately in depends on what you think HMRC’s job should be - investigating everyone on a point of principle or recognising that they’re never going to receive 100% of what they should so they should aim to get as close to that as possible? So target the investigations against the people/companies they can recover the most money from?

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I think in a few years time cash payments will be restricted. The only rational explanation for regularly receiving (and often making) cash payments among anyone of working age now is tax avoidance.

In some cases, financial institutions are required by law to provide data on accounts held with them to tax authorities … I can see this slowly becoming the norm meaning that there will be no need for Hmrc to investigate because payments will be flagged up.

peachystormy · 06/01/2025 22:57

just wow OP none of your damned business!

TossieFleacake · 06/01/2025 22:57

You are jumping to a massive conclusion based on an offhand comment by a nice guy, doing a good job.
Nothing to do with you, keep your nose out of others business.

Franjipanl8r · 06/01/2025 22:57

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.

Go after the massive tax dodging corporations, the politicians who allow tax inequity and the non-doms. For Christ sake don’t go after this guy. No one even knows his set up, he might not even owe tax on this tutoring!

Whyamisopathetic · 06/01/2025 22:58

Sudburyswan · 06/01/2025 21:44

That wasn’t the impression I got. It was like it was something totally alien to him. Surely hmrc can see what’s going in to our accounts?

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Have you invented this post about the tutor and actually it’s you asking “Can HMRC see what goes into our accounts?”

MadmansLibrary · 06/01/2025 22:58

Fucking Hell. 🙄

MillyGoat · 06/01/2025 23:01

nonbinaryfinery · 06/01/2025 22:24

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

So because it’s a teacher tax avoidance is ok, or tax avoidance is in general ok for everyone?

Herewegoagain84 · 06/01/2025 23:01

You sound like a dick. And no, HMRC cannot see what’s going in to our accounts. Hope you’re paying VAT on the service though.

CombatBarbie · 06/01/2025 23:02

Side hustles are not the problem in this county. I gather you have cancelled his services and told him why??

Iloveyoubut · 06/01/2025 23:04

Sudburyswan · 06/01/2025 21:40

Yes but surely it all has to be accounted?

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Oh ffs get a life. Seriously

SatansBobbleheadedDashboardOrnament · 06/01/2025 23:04

MillyGoat · 06/01/2025 23:01

So because it’s a teacher tax avoidance is ok, or tax avoidance is in general ok for everyone?

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Where's the tax avoidance?

Herewegoagain84 · 06/01/2025 23:05

MillyGoat · 06/01/2025 23:01

So because it’s a teacher tax avoidance is ok, or tax avoidance is in general ok for everyone?

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Finances and tax are personal affairs. It’s entirely distasteful to meddle in anyone else’s business.

Iloveyoubut · 06/01/2025 23:05

Herewegoagain84 · 06/01/2025 23:01

You sound like a dick. And no, HMRC cannot see what’s going in to our accounts. Hope you’re paying VAT on the service though.

I’ll second that, you really do sound like a dick.

sometimesmovingforwards · 06/01/2025 23:05

Anyone who thinks calling the authorities for this sort of thing is a good thing, is a cretin. And probably explains why you have so few friends.

Kibble29 · 06/01/2025 23:08

Can’t believe the people on this thread who’d bother reporting this guy.

Would you report the car wash that cleans your car for a fiver? Or the guy who cuts your grass in the summer? Or the window cleaner?

Go focus your energy on the millionaires avoiding taxes instead.

Absolute grasses.

LoremIpsumCici · 06/01/2025 23:08

hamsandyams · 06/01/2025 22:38

Then you haven’t seen the figures. 60% is from small business. 5% is for the wealthy.

https://www.gov.uk/government/statistics/measuring-tax-gaps/1-tax-gaps-summary#tax-gap-by-customer-group

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95% of U.K. businesses are classified as small businesses, usually owned by wealthy individuals…who then siphon off money to avoid tax. The estimated tax gap is of corporation tax. Self employed tutors, tradespeople and so on are not usually corporations but sole traders. The taxes they pay fall under individual income tax, not business taxes.

A teacher moonlighting as a tutor is not part of the small business tax gap. See Chapter K17-32 for further explanation.
https://www.gov.uk/government/statistics/measuring-tax-gaps/methodological-annex#chapter-k-avoidance-and-hidden-economy

This estimated avoidance falls under individuals which is 5% of the tax gap, similar to that of the wealthy, although there are some 34million people under individuals compared to only 850k high net worth individuals under the wealthy category.

so the wealthy are 40x more likely to be avoiding paying tax than a regular individual.

Kibble29 · 06/01/2025 23:08

CombatBarbie · 06/01/2025 23:02

Side hustles are not the problem in this county. I gather you have cancelled his services and told him why??

Has she fuck. 😂

YourAzureEagle · 06/01/2025 23:10

Lets assume this chap does £3K a year on top of his PAYE work, and doesn't declare, allowing for his £1K trading allowance, he owes £400, assuming no deductions.

It really isn't cost effective for HMRC to send an inspector out to audit him and try to prove he owes that money, which may be nigh on impossible to do.