Private and online tutors are self-employed and taxed on profit after costs such as materials, software, a share of home costs and platform fees. The £1,000 trading allowance may cover small amounts of tutoring income.
Yes, above the £1,000 trading allowance. Your profit after expenses is taxed at your marginal rate plus Class 4 NI.
On your profit — income minus allowable expenses. You pay income tax above your personal allowance, plus Class 4 National Insurance on profit above the threshold.
Costs incurred wholly for your work — tools, materials, travel, phone, insurance and more. Keeping them recorded reduces your taxable profit.
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