Tax Tips for Self-Employed Tutors in the UK
Register with HMRC
If your tutoring income exceeds £1,000 in a tax year, you must register as self-employed with HMRC and file a Self Assessment tax return. Do this as soon as you start earning — late registration can attract penalties.
Understand What You Can Claim
As a self-employed tutor, you can deduct legitimate business expenses from your taxable income. Common allowable expenses include:
- Books, resources, and educational materials
- Subscriptions to tutoring platforms or software
- A proportion of your phone and broadband costs (if used for work)
- Travel costs for in-person sessions (mileage at HMRC approved rates)
- Professional development courses
- A portion of home costs if you tutor from home (use the simplified flat-rate method: £10/month for 25–50 hours work per month)
Keep Records From Day One
Record every payment you receive and every business expense you incur. A simple spreadsheet works fine. Keep receipts. HMRC can request records going back several years.
Pay Yourself on Time — and Save for Tax
A common mistake for new tutors is spending all their income without setting aside money for tax. A safe rule of thumb: save 25–30% of your net income in a separate account for your tax bill.
National Insurance
Self-employed tutors pay Class 2 NI (currently through Self Assessment) and Class 4 NI on profits above the lower profits limit. Factor this into your rate calculations.
Consider an Accountant
If your annual tutoring income is above around £20,000, a good accountant will typically save you more than they cost. For smaller incomes, HMRC's free Self Assessment resources are sufficient.
This post is for general information only. For advice specific to your circumstances, consult a qualified accountant or tax adviser.