Working as a private tutor entails being self-employed. Self-employment requires dealing with tax returns. This is general advice, not specific guidance, for which contact HMRC. During the first self-employment year, no tax returns need filing. File returns in the second year for the first two years. But preliminary tax still gets filed. Visiting Lecturers in London earn up to £63,174 annually.
Tutoring lets you enter self-employment with little risk. As your reputation grows through word-of-mouth, lesson requests increase. Choose opportunities suiting you. Tutoring also provides flexibility in hours. Use your math degree becoming a math tutor.
With no experience, register with an established agency providing you students. The agency markets for you.
Legal and Financial Considerations
To legally earn through tutoring jobs, observe some formalities based on your business model.
Register as self-employed with HMRC if tutoring as an individual. Track earnings and fill tax returns yearly to pay correct tax based on income. Get public liability insurance against injury or damage claims related to work.
Technically, register as self-employed when first paid for tutoring services. Not doing so risks fines.
If actively running an independent tutoring business, you’re self-employed even with a day job. That makes you an independent contractor filing 1099 forms. Cash payments to contractors are legal.
As a self-employed tutor, taxes aren’t automatically withdrawn from earnings unlike with an employer. You pay income tax, self-employment tax and state income tax if applicable. Self-employed make estimated quarterly tax payments.
Marketing Strategies
Market yourself to get middle and elementary school math students. Define your target age group, grade level and demographics to shape teaching methodology and content. Get ideas from freelance websites. An elementary school tutor focuses on foundational concepts using interactive approaches.
Register with HMRC as a self-employed private tutor to start your tutoring career. The registration deadline is 5th October in the second tax year to avoid penalties. Report your earnings and pay due taxes.
If you make money from your hobby, declare it to HMRC and pay due taxes. Someone can be employed and self-employed, working for an employer and running a business. If you don’t register by the deadlines, you may pay a penalty. However, if you register as self-employed by the next January 31 deadline, file returns and pay taxes, you avoid penalties.
As a self-employed tutor, taxes aren’t automatically withdrawn from earnings. Make estimated quarterly tax payments. Hire a professional administrator for help with paperwork.
Give yourself a job title reflecting your freelance work on your resume. Provide a summary of the services you offer. Use bullet points to highlight noteworthy projects or clients.
Earn well as a private tutor. But remember, dealing with tax returns comes with being self-employed. For specific guidance, contact HMRC.