Tutor Taxes

Owl Tutors works with its tutors on a freelance basis meaning that they are self employed for taxation purposes. In other words, Owl Tutors does not deduct tax from the sums that are paid to its tutors and it is the tutors responsibility to ensure that they declare and pay any taxes that are due on their earnings.

Please also note that Owl Tutors are not in a position to offer formal advice regarding taxation issues and any information contained on this website is for information purposes only. Please contact your local tax office to find out more about taxes that you will need to pay on tuition income. If you are a resident of the United Kingdom, please contact Her Majesty’s Revenue and Customs (“HMRC”).

How do I pay my taxes?

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.

How much tax do tutors pay?

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.

Do tutors need to pay VAT?

VAT (value-added tax) is a UK sales tax. The VAT threshold in 2016-17 was £83,000. Any person or organisation generating turnover in excess of this amount is likely to be liable to pay VAT. If you are a UK resident and you are generating in excess of £83,000 of tuition income in this tax year, we suggest that you contact HMRC to ask for their guidance on what to do next.