Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Work

Chat with other users about all things related to working life on our Work forum.

Flip

Original poster

Declaring income from casual tutoring? How?

11 replies

CaptainSubtext · 29/03/2015 13:13

I am utterly new to this - used to be employed by a music school but now after several years' break I'm getting a few piano pupils.

I have no idea how to do the declaring income and all that stuff or if I even need to (I heard you don't if you earn below a certain amount)

We get some tax credits as DH works 40hrs for £21k, but I only work 12hrs for the council and earn not much more than £5k a year. I'm thinking the earnings would only be about £20 a week to start with (hoping to get more pupils gradually) but don't want to get in trouble if I have to report it!

Can anyone give me an idiot's guide please? I am a complete numpty when it comes to this sort of thing and even gov.uk has me confused :(

OP posts:

UniS · 29/03/2015 13:17

You need to complete and submit a tax return. In that return you declare your income from employment and from self employment.

peltata · 29/03/2015 13:26

Your first £10,500 may now be more earnings are tax free

IrenetheQuaint · 29/03/2015 13:30

Yes, you should sign up as self-employed and fill in an annual tax return. Doesn't sound like you'll have to pay any tax, but possibly worth paying self-employed NI contributions.

Original poster

CaptainSubtext · 31/03/2015 17:48

Thanks everyone. So it looks like I won't need to pay tax on it until I get lots of pupils but if I register anyway then at least it's done.

Does this also mean I should keep receipts for any related expenses (possibly travel to students, music books etc)?

OP posts:

profpoopsnagle · 31/03/2015 17:59

Get registered now and try to get on a tax course that they offer for free- really helps with what you can offset.

You may also choose to declare low earnings for NI which means that you won't have to pay but it will depend on your circumstances and may not be the right thing to do- if you're thinking about another child in the future then you could be able to claim MA. You need to think carefully about this and what is right for you.

Keep a record of what you spend and keep the receipts I use a spreadsheet which records the income but also records the miles I travel so it's all done in 1 hit for each student. I then have columns for expenses- books, advertising etc. The good thing with this is that my tax return is pretty much done as I go along and it's a case of filling numbers in the form.

It isn't complicated to fill the form in especially if you have been careful about recording info. Sign up for the online form well in advance, I file mine as soon as I have my P60 from work but you have a little longer to pay (any) tax for the first year.

I also include an 'office' charge for my expenses (£4/week) which covers phonecalls, heat/light/space to prep lessons at home) and I claim 45p/mile for travel.

MrsMargoLeadbetter · 31/03/2015 23:13

You still need to do the annual return each year even if there is no tax to pay. You need to check NI contributions too. As they are moving to collecting them all via self-assestment (I believe). Currently I pay class 2 monthly.

Original poster

CaptainSubtext · 01/04/2015 00:55

Wow that's interesting about maternity pay - does that mean I would not get maternity allowance from my job then, as I don't earn enough from them to pay tax etc? (Not that we are that likely to have DC3, but hey...)

OP posts:

profpoopsnagle · 01/04/2015 10:58

Captain, if DC3 is a possibility, then definitely look into paying self employed class 2 (looks like it is £2.80/week).

More details are here

Needaninsight · 15/09/2015 11:22

Profpoop Sorry, realise this is an old thread..

But I have similar questions - well, in my case, they probably sound a bit daft.

I started tutoring in March - so obviously 2014-2015 tax return was fairly easy. I earned £200 and spent out £140 in resources, business cards, website set up fees etc etc. So my 'earnings were £60.

Been getting a bit busier since April. I'm probably still only earning about £100 a week though.

I get that I don't have to pay tax, and probably won't even by the end of the year, but when you say you 'claim' for business mileage etc..what does that actually mean?? Do you actually get money BACK from the govt ? Or does it just mean that the amount you've earned is then reduced. (because you say you've earned £200, but you've spent £100 of that on petrol, so you've only 'earned' £100??)

Is there any point even doing this if I'm only going to earn about £4k in total? isn't it a major faff to keep records of mileage etc etc.

I'm a total numpty at all this. Been employed for years so never gave tax a consideration!!

Needaninsight · 15/09/2015 11:23

Also, is it worth getting an accountant to do it and they just sort it out?

Who actually checks your spreadsheet? Or do they take it that you're being genuine?

SummerSazz · 15/09/2015 20:50

Yes, you only pay tax on your net income (tuition fees less expenses). The Govt doesn't 'pay you' to drive around
I log mileage weekly on a spreadsheet along with any income and sundry expenses so its not a 'major faff' you just need to be organised.
You can get an accountant to do it but you still need to keep records of income and mileage to pass over to them. The accountants costs would be tax-deductible!
Hmrc will review your return and can ask for details or do an audit of your records (albeit unlikely for your size of business)

Flip