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??

I always take the view that it’s none of my business how people I have paid for tutoring/cleaning/beauty/ painting etc manage their money. However I will never pay cash but always insist on a bank transfer. There is then a record of their income and they have to account for it if asked. Lots of teachers tutor and I am sure they talk about how to declare the income: as a regulated profession you also have to be careful re probity. I have seen doctors get struck off for not declaring extra income. If he’s a good tutor pay his rates but not in cash and MYOB like others have said

If your tax affairs are simple and you have a PAYE job and a steady 2nd income you don't have to do a tax return. You can just ask HMRC to give you a lower tax code eg if you earn a steady £4000 per year outside your PAYE job you can have a tax code set to 8570 instead of 12570 and all your tax gets sorted through paye. Simple. If the 2nd income is too variable or you want to start claiming expenses etc then you have to do a tax return but maybe he opts to keep life simple.

It's not a data dump 🙄 If an investigation is taking place then these sources will be used to complete a financial picture. I don't get Arlene from Basingstoke's bank statements every Friday to make sure she's declared her tips.

I don't see the issue. We're getting squeezed and squeezed as it is so I don't blame him one bit.

Very interesting thank you

He’s more than likely getting an accountant to do it.

Are you prepared to lose him?

Because he’ll workout it’s you.

Do you think at some point the system will be more automated, meaning you don’t need to carry out investigations as discrepancies between income and tax will be picked up… or are there too many routes around it?

I had an accountant one year… guaranteed if he’s earning as little as the OP says he is then the accountants fees would wipe out much of what he’s making!

He should be paying tax on it. I do 4 days in school at tutor on top too. All declared!

True, but I don’t think people are notified in advance of an investigation. So HMRC can request and be provided information…which might happen if someone reports someone as a suspicious tax dodger…

Also, Rachel Reeves wants money for AI to analyse data dumps. They have a bill in Parliament to do this for all benefits recipients as a pilot to, I suspect, later expand it to everyone. There are promises about preserving some level of details private though.

They want to unless the media is being paranoid
https://www.express.co.uk/finance/personalfinance/1908741/HMRC-Connect-tax-investigation-robots-spies-Labour-Party-Rachel-Reeves

https://www.benefitsandwork.co.uk/news/almost-9-million-claimant-bank-accounts-to-be-put-under-continuous-surveillance

This bill includes info sharing between DWP and HMRC. Roll out is 2025- this year.

Yes, definitely go after the poor guy for possibly not paying his £5 of taxes.
instead of concentrating on the big fish who are evading taxes daily.

The resources used in investigating someone like him would be multiples of what he owes - if anything.

This

If you were knowingly evading tax would you accept payments by bacs, probably with the reference “chemistry tuition” and comment on a client doing a tax return in a way that gives the impression that you evade tax?

I mean some people are just stupid and arrogant, but most with any sense would keep quiet! I’d bet he’s either clueless that it applies to him or he meant that someone else fills in the form for him.

Ask for an invoice
also his hourly rate will likely go up if he declares everything

Where did I say anything about poor teachers? OP has no idea what he earns from tutoring but she she estimates £100 a week during term time only from what little she does know. I would assume she knows something, whereas you know nothing about him 🙄

You think tutors don’t need to buy text books and materials to prepare? I think you will also find many teachers in state schools buy a lot of materials themselves…

Yes, he could be an idiot who openly tells clients he is evading tax but there are a million reasons why someone OP guesstimates earns £100 per week from tutoring doesn’t need to submit a tax return. Most obviously that she is just guessing 🙄 If she guesstimates that, why are you fantasising about £40k a year and him asking for cash up front?!! Presumably, what little she does know is how much he is charging, which isn’t £90 an hour if she thinks it is £100 a week 🙄

It sounds like he is just someone who does a few hours tutoring here and there on top of his teaching (PAYE) job. Based on the actual facts that OP has posted rather than fantasy.

Agree with that. He comes to you one hour a week!!! Honestly! Can’t understand some people.

It’s not fantasy read it again… this is the tutor we use for DS 😂. We pay for all our own textbooks and materials (£80 per year paid on top of fees as it happens), he asks for cash up front (£30ph in a group of 3), runs at least ten sessions a week, then provides extra lessons all through the holidays, estimate he probably doubles his hours at least over some of these breaks.

Tutoring is hardly a “little side income”.. people can earn a small fortune.

As for “poor teachers”… see earlier in thread where a pp referred to “us poor teachers” and the various references that teachers have to do this because they are so poorly paid (avg salary 41k outside London after five years… plus pension contributions of 25-30%…).

@Sudburyswan did you report that Brit locked up in Dubai? Sounds very underhand of you

Everyone hold your horses, HMRC are now on the thread and they’ve even said it’s ok 😂

@LittleRedRidingHoody has hit the nail on the spot here. You are asking whether to report him for fraud yet continuing to use his - in your opinion - fraudulent services. This is honestly laughable

You sound nasty. He's a hard working employee in a school (a teacher?) who is having to work extra hours on top of a very demanding role and you want to get involved with his tax affairs?? Mind your own business!!

@SirChenjins bit with what evidence? A mere comment if I am glad I do not have to do that? Wake up.

But he is paying his share as he pays tax on his main income. He's not a tax dodger.