From the moment you become self-employed as a private educator, you need to register as self employed with HMRC within 3 months, as you would with any other form of self-employment. Technically, as soon as you receive your first payment for your private tuition services, you need to declare those earnings. Failing to register as self employed can result in you being fined. <br /><br />How to Register as a Self Employed <br /><br />The easiest way to register with HMRC to give private lessons is to do so online. By completing a registration form, you are making HMRC aware that you are now working for yourself and you then become responsible for keeping track of your income and your expenses. <br /><br />Once you are registered as self employed, you will be sent a Self Assessment Tax Return every year after the 5th April which will instruct you on how to declare your earnings for the previous year. This form will also highlight your deadline dates for when you need to return the form. If you choose to complete the form online, you are normally given an extended deadline to do so. Once you have submitted your form, you will then be contacted by HMRC and told how much income tax you owe for the period in question. <br /><br />Paying National Insurance Contributions <br /><br />Being self-employed also means paying your own Class 2 National Insurance contributions and if you earn over a certain threshold, you also need to pay Class 4 contributions. It is possible to defer your National Insurance payments and depending on your earnings, you may also be exempt from paying National Insurance altogether. In order to find out if this applies to you, please contact HMRC for further guidance and information. <br /><br />Paying Value Added Tax (VAT) <br /><br />If you are earning over a certain amount, you may also be eligible for paying VAT on the services that you provide. In the 2012/2013 tax year, you have to be earning more than £73,000 before you have to register to pay. It is also possible to register for VAT voluntarily. <br /><br />As a home tutor, you have to declare any earnings you make to HMRC as you would with any other employment, regardless of whether you work full-time or part-time. Please be aware that The Tutor Website is not a registered tax advisor but hopefully the advice in the article will provide you with some hints and tips for completing your tax return efficiently. Self Assessment tax return forms are issued to those registered as self-employed, every April, covering the previous 12 months (i.e. the tax year to the 5th April just passed). <br /><br />Visual - The Tutor Website <br />Audio - 'Easy Lemon' Kevin MacLeod (incompetech.com)
