Private tutoring is one of the fastest-growing self-employment sectors in the UK. Whether you tutor A-level maths, GCSE English, 11-plus preparation, music, languages or university subjects, HMRC considers your tutoring income to be self-employment income and expects you to register, keep records and file a tax return.
Most tutors operate as sole traders, which is the simplest and cheapest way to get started. The admin is lighter than you might think, particularly if you use basic accounting software and claim the expenses you are entitled to.
Registering with HMRC
You must register for Self Assessment if your self-employed tutoring income exceeds £1,000 in a tax year. Register by 5 October in the second tax year of trading.
If you tutor alongside an employed job (e.g. you are a teacher who also tutors privately), you still need to file a Self Assessment return reporting both your employment income and your self-employed tutoring income.
Trading allowance
If your total self-employed income is £1,000 or less per tax year, you do not need to register or report it. This is the trading allowance. If your income exceeds £1,000, you can either deduct the £1,000 trading allowance instead of your actual expenses (useful if expenses are minimal) or deduct your actual expenses in the normal way.
Income and pricing
| Income source | Tax treatment |
|---|---|
| One-to-one tuition fees | Self-employment income |
| Group tuition fees | Self-employment income |
| Online tuition (Zoom, Teams) | Self-employment income |
| Income from tuition agencies | Self-employment income (whether paid by agency or direct by parent) |
| Exam marking/moderation | Self-employment income (if freelance) or employment income (if employed by exam board) |
| Course material sales (workbooks, guides) | Self-employment income |
All tutoring income is taxable, whether paid in cash, by bank transfer or through an agency platform. HMRC can cross-reference platform data, bank deposits and parent records, so declaring all income is essential.
Tutoring alongside other work? Start your free trial and keep lesson income separate.
Tax and National Insurance
Income Tax rates
| Band | Rate |
|---|---|
| Personal allowance | 0% |
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
These are the rates for England, Wales and Northern Ireland; Scotland sets its own rates and bands. The personal allowance and band limits are set at the Budget, and HMRC publishes the current figures on GOV.UK.
National Insurance (self-employed)
| Class | How it works |
|---|---|
| Class 4 | Charged on profits above the lower profits limit: a main rate up to the upper profits limit and a lower additional rate above it |
| Class 2 | Not compulsory since 6 April 2024; treated as paid when profits reach the small profits threshold, and can be paid voluntarily below it to protect your State Pension |
HMRC publishes the current rates, limits and thresholds on GOV.UK.
If you also have employed income, your employment NIC is calculated separately. Your self-employment NIC is additional.
Setting aside tax
Open a separate savings account and transfer 25-30% of every tutoring payment into it. This covers Income Tax and National Insurance. The exact percentage depends on your total income from all sources and your tax band.
Allowable expenses
Teaching materials and resources
| Expense | Deductible? | Notes |
|---|---|---|
| Textbooks and revision guides | Yes | Must be for use in tutoring, not personal study |
| Printed worksheets and past papers | Yes | Printing costs |
| Stationery (pens, paper, whiteboards) | Yes | |
| Online resource subscriptions | Yes | E.g. exam question banks, educational platforms |
| Educational software and apps | Yes | Used in lessons |
Technology
| Expense | Deductible? | Notes |
|---|---|---|
| Laptop or tablet | Yes | Capital allowance (AIA) if used wholly for business; business proportion if mixed use |
| Webcam, microphone, headset | Yes | For online tuition |
| Software subscriptions (Zoom, Teams) | Yes | Business proportion if also used personally |
| Internet costs | Partially | Business proportion of home broadband |
| Mobile phone | Partially | Business proportion of contract |
Home workspace
Most tutors work from home at least some of the time. You can claim home office costs using:
HMRC flat rate:
| Hours per month working from home | Monthly deduction |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101+ | £26 |
Actual cost method: calculate the proportion of your home used for tutoring and claim that percentage of rent/mortgage interest, council tax, utilities and insurance. If you have a dedicated tutoring room, the actual cost method usually gives a larger deduction.
Travel
- Mileage to pupils’ homes – 55p per mile (first 10,000 miles), 25p thereafter
- Public transport to tutoring locations
- Parking at client locations
Travel from your home to a pupil’s home is deductible because each pupil’s home is a temporary workplace. If you tutor at a fixed external location (e.g. a tutoring centre where you work every week), that becomes a permanent workplace and the commute is not deductible.
Professional costs
- DBS check (Disclosure and Barring Service) – required for working with children and vulnerable adults
- Professional memberships (The Tutors’ Association, subject associations)
- Professional indemnity insurance – covers you if a client claims your tuition was negligent
- Public liability insurance – covers injury or damage at your premises or a client’s home
- Accountancy fees
- Advertising – online ads, local listings, leaflets, tutoring platform fees
- Website hosting and domain
Agency and platform fees
If you find clients through agencies or platforms (Tutorful, MyTutor, Superprof), the commission they deduct is a deductible expense. If the agency pays you a net fee after deducting their commission, record the gross fee as income and the commission as an expense.
VAT exemption
This is an important distinction for tutors. Under VAT Notice 701/30, the supply of education is exempt from VAT in certain circumstances:
| Type of supply | VAT treatment |
|---|---|
| Private tuition in a subject by a sole trader | Exempt |
| Tuition provided by a company or partnership | Standard-rated (20%) |
| Group tuition by a sole trader | Exempt (if ordinarily provided on a one-to-one basis) |
| Tutoring agency services | Standard-rated (the agency’s service, not the tuition itself) |
As a sole trader providing private tuition, your tuition fees are exempt from VAT. This means:
- You do not charge VAT on your fees
- You do not need to register for VAT even if your turnover exceeds £90,000 (as long as all your income is exempt)
- You cannot reclaim input VAT on your business purchases
The exemption applies to tuition in subjects ordinarily taught in schools or universities. It covers academic subjects, music, languages and most practical skills taught individually.
If you also sell taxable goods (e.g. workbooks, revision materials), those sales are subject to VAT if your taxable turnover exceeds the registration threshold.
Record-keeping
Keep records of:
- All income received – date, pupil/parent name, amount, method of payment
- All expenses with receipts or invoices
- Mileage log – date, destination, purpose, miles driven
- Lesson records – while not required by HMRC, keeping a log of lessons delivered supports your income records
Retain all records for 5 years after the 31 January filing deadline for the relevant tax year.
Self Assessment filing
| Deadline | What |
|---|---|
| 5 April | Tax year ends |
| 31 July | Second payment on account |
| 5 October | Register for Self Assessment (first year) |
| 31 October | Paper return deadline |
| 31 January | Online return + balancing payment + first payment on account |
Payments on account
If your total tax bill exceeds £1,000, HMRC requires payments on account – two advance payments of 50% of the previous year’s liability, due on 31 January and 31 July. This means in your second year you may face a bill of approximately 150% of a normal year’s tax in one go.
Common mistakes
- Not declaring cash payments – all income is taxable regardless of how you are paid
- Ignoring the £1,000 registration threshold – if you earn more than £1,000 from tutoring, you must register
- Not claiming travel expenses – mileage to pupils’ homes adds up quickly
- Forgetting DBS costs – this is a legitimate business expense
- Registering for VAT unnecessarily – if your only income is from exempt tuition, you do not need to register
- Not keeping a mileage log – HMRC can disallow mileage claims without a contemporaneous record
- Missing the payments on account – budget for the January and July payments from year two onwards
Simple, tidy records for every lesson you teach. Start the free trial.