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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5027
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I own an online tutoring agency registered as a private limited

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I own an online tutoring agency registered as a private limited company in England and Wales. Tutors advertise their profiles on our website and deliver tutorials using our online classroom. All tutors are self employed and invoice us for services delivered each month. We pay them minus our commission for use of our website. We pay VAT on the commission only as we are an agency and not the principal.
If a tutor is not living in the UK but is using our website which is registered in England and Wales, what are the tax implications for them? Can I use them as tutors? Do I need to check that they are registered self employed and do they have to pay tax to HMRC?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your question..You would only have to register as self employed with HMRC if you are carrying out a trade here. From what you are saying, these non-resident tutors are using your website as a platform to offer tutoring service online. You can use them as tutors.It would be good practice to check their credentials and check they are registered with the tax authorities in the UK and in their respective countries and account for taxation on this income to UK authorities.You usually have to pay tax on your UK income even if you are not a UK resident for tax purposes and income from wages/self employed falls in this category.More information on this can be found herehttps://www.gov.uk/tax-uk-income-live-abroad/overviewI hope this is helpful and answers your question. If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 2 years ago.
Ok, thank you for your response.Does that mean for example; a Greek national who is living in Greece, but tutoring through our website would need to pay tax in the UK as well as their native country?Is there a legal requirement for us to "check their credentials and check they are registered with the tax authorities in the UK" or is it only good practice?Thank you
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.A Greek National who pays tax on income in the UK would be able to claim foreign tax credit relief against tax on that income in Greece under Double tax agreement.HMRC has clamped down on private tutors. HMRC requires anyone who is self employed in the UK to register for self assessment within 3 months of going self employed.If they are not registered then you should deduct tax at source and pay it to HMRC as you dont want to be penalised.You may find these articles helpful ...http://www.theguardian.com/money/2011/sep/21/tax-taxandspendinghttp://blog.tutorhub.com/2013/12/03/your-tax-as-a-self-employed-tutor-time-to-sort-it-out/http://thetutorwebsite.co.uk/for-tutors/tax.htmlI hope this is helpful.
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Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.