Now that I've found out how to go about teaching privately with ample of sound advice from various members on the forum, I am now faced with the confusion over paying tax on this second income...! I am assuming that even if I have just one pupil a week I will have to pay income tax - there's no way round that - though how much would I be paying and will it be worth my time just teaching the one pupil?

Is there any easy way of finding this out without trying to get my head round the Inland Revenue's website?

What does everyone else do? And I don't mean people who soley teach but people who are already full time employed and teach as a means of a second income?

Any help would be greatly appreciated. Thanks!

Hi

With respect if you wish to become self employed you have to do things for yourself. I will attempt to answer your questions here,but you will then have to start doing your own research which means trying to access the IR website.

You probably won`t be paying income tax at all based on you currently having 1 pupil. You will need to pay Nat Ins class 2 contributions...don`t entertain voluntary contributions.

I`m a bit hazy on the IR rules for second incomes as my teaching is my sole income.But there is a section dealing with this issue on the IR website. However I know you might be entitled to Working Tax Credit even if you are a single person if your income is below a certain amount.

It`s worth your while going into your nearest IR office and discussing your concerns with them.Be totally up front with them.I have found them very approachable.I would also book an appointment to discuss your questions with an accountant.Alternatively do a google search on accountants as I don`t know where you are in the UK. I also fill in the self assessment form myself and then go in and ask them to check it`s correct.You can save on accountants fees and your own time doing this.Accountant fees are tax deductible.

This link will also take you to the home page too

https://www.taxcredits.inlandrevenue.gov.uk....uk/HomeIR.aspx

I remember there is another thread with some more info on this somewhere on here.Try a search or scroll back through the pages.It was pretty recent too.

all you need to do is ring the tax office to tell them that you have taken on part time self employed work. If its under a £2k (approx) threshold you can apply to not pay any stamps on this - but you need to tell the IR this and they will send you a cretificate to confirm this.

Then all that happens is that at the end of the tax year you will need to complete a tax return for PAYE and self employment. Keep records of all expenses as well as income, and your P60 from your Full time work. Then you can either complete yourself, or get an accountant to do it - which I just happen to do!

The tax office should generally send you the self assesment forms automatically, but you can always download them from the website.

With regards to whether its worth while:

1) Assuming that you aren't a high tax payer already you will looking at paying 22% of what you earn.
2) Expenses can be taking off of this - including mileage if you travel to pupil, % of heating and electricty bills, music books, courses you may go on, stationery, etc.

This will probably result in you paying a very very small amount of tax, so it would be worthwhile in my opinion.