Taxes for self employed individuals are collected differently depending on the country that you are resident in. Generally speaking, self employed individuals will need to register with their local tax office to notify that they are operating as a sole-trader. In the UK you will need to register for “Self Assessment”. HMRC should then contact you to inform you about how you proceed.

Once again, different countries have different taxation systems and so this will vary depending on where you are based and how much you are earning. Most countries operate a progressive taxation system which means that the amount of tax you pay increases as you earn more. Although we cannot advise you on how much tax you will have to pay, one thing that we would recommend that you do is to find out how much tax you are likely to have to pay before you start tutoring. This will allow you to set aside enough of your tuition earnings to pay your tax bill when it is due.

VAT (value-added tax) is a UK sales tax. There is currently an exemption for charging VAT on private tuition if it is delivered by an individual. As Owl Tutors acts as your agent and arranges for you to work and bill clients, no VAT is current charged on the supplies of our tutors to clients.

Owl Tutors is however a VAT registered business and the supplies of arranging tuition between tutors and clients does command VAT. VAT is added to the invoices that Owl Tutors produces for Tutors