Paying tax as a tutor

[Meredusoleil]

Can established tutors please explain how they pay their taxes?

If you are private, are you set up as self-employed and gave to do a tax return via self-assessnent every year?

If you work through an agency, do they deduct tax at source and then pay you? Or do you still have to set yourself up as above?

Just keen to get a better insight into how it all works!

If you are self employed and get your clients privately then yes you will need to complete a tax return, if you are self employed but get your clients through an agency then you still need to do a tax return the only time it would be taken through PAYE is if you were employed by a company but that isn't very usual for tutors.

@Hellocatshome

If you are self employed and get your clients privately then yes you will need to complete a tax return, if you are self employed but get your clients through an agency then you still need to do a tax return the only time it would be taken through PAYE is if you were employed by a company but that isn't very usual for tutors.

Thanks for the reply.

So either way, you have to set up as self employed and do your own tax return then?

Yes. For a simple arrangement like yours the place I work would charge about £150 to do the tax return for you. You can do it yourself as it is normally simple enough as long as you have kept good records as you go but a lot of our clients would rathe pay for the piece of mind of getting someone else to do it. Dont let it put you off is what I'm trying to say.

I would recommend contacting HMRC to get a UTR number if you don't have one.

It can take some time to sort this out (as I discovered this year!)

After that you can do a tax return or an accountant can do it.

I did my own this year for property income and it wasn't too bad.

My DH is self employed and has an accountant to do it - as above they don't charge a great deal and it's nice to know a professional has completed it.

The worst bit for me has been trying to get any sensible answers from HMRC - their call centre staff (after you have spent 4 hours waiting to get through) tell you all sorts of conflicting things or cut you off!

@KisstheTeapot14

I would recommend contacting HMRC to get a UTR number if you don't have one.

It can take some time to sort this out (as I discovered this year!)

After that you can do a tax return or an accountant can do it.

I did my own this year for property income and it wasn't too bad.

My DH is self employed and has an accountant to do it - as above they don't charge a great deal and it's nice to know a professional has completed it.

The worst bit for me has been trying to get any sensible answers from HMRC - their call centre staff (after you have spent 4 hours waiting to get through) tell you all sorts of conflicting things or cut you off!

What's a UTR number?

Unique tax reference.
Do you know any accountants? I pay someone to do mine, far less faff and the accountants fees are tax deductible!