Key Takeaways from our Tutors and Tax webinar

On Thursday May 11th, we hosted our Tutors 🤝 Tax webinar with Enzo, the co-founder of Earnr (a finance and tax app). 

We know that for some of you, tutoring with us might be the first job you’ve had where you’ve registered as ‘self-employed’. So we wanted to help support you with any queries you have about what this involves – particularly like submitting a tax return.

Enzo has worked in accounting and financial services for the past 10 years and has a huge amount of knowledge about finance and tax. He co-founded Earnr (a HMRC recognised supplier) which supports those with side incomes and small businesses on the daily.

If you missed out on the session and want to find out more – you can watch the recording here.

Here are some key questions from our tutors and the answers:

How do I pay tax as a Tutor?

1. You need to register for a UTR (Unique Tax Reference number)
2. Submit a self-assement tax return to HMRC
3. Pay your outstanding tax bill to HMRC

When does the tax year run from?

The tax year starts on April 6th and ends on April 5th. So the 22/23 tax year runs from April 6th 2022 to April 5th 2023.

What types of taxes do I need to look at?

As a self-employed tutor, the 2 types you need to be mindful of are Income Tax and National Insurance. VAT (value added tax) is the 3rd type of tax, however you don’t need to worry about this as it’s covered by MyTutor.

When should I file my tax return for the current tax year (2022 – 2023)?

You need to pay your outstanding balance by January 31st

How much can I earn before paying tax?

You can earn up to £12,570 each year before paying Income tax. This is known as your personal allowance.

What expenses can I declare as a tutor?

You can expense any cost that’s incurred wholly and exclusively for the purposes of running your tutoring business. This includes:

• Internet
• Software tools
• Accounting costs
• Costs of working from home 

What is Earnr?

Earnr is a simple tax app that helps self-employed individuals independently manage their tax and financial admin—removing all of the stress from tax returns, bookkeeping and more. 

For more advice, check out our blog, An introduction to tax for tutors and that designated tax article that Earnr helped put together for us.

We hope this helps!

As always, if you have any questions or feedback, we’d love to hear from you. You can reach us on [email protected] or 0203 773 6024.