What is Self-Employed Teacher Tax?

self-employed teacher tax

If you are a resident of the UK and working as a self-employed teacher, it is imperative for you to understand the self-employed teacher’s tax and how it will work for you. Just like any other individual who is offering self-employed services to customers is earning a range of vastly different incomes from one month to another, the self-employed teacher’s case is just the same. This is relevant to self-employed teachers especially when they are connected with a specific timetable and work with the children.

In the case of teachers who are employed by the organisations, the teacher’s tax is paid through the PAYE normally. The employer of the school or organisation is liable to handle the tax matters of the employee teachers in such cases. What is the case of self-employed teachers tax in the UK, if you are wondering about this query, you are on the right page. As this comprehensive guide is designed in a manner that will hold the discussion about how to do the tax return being a self-employed teacher, how much is required to be paid, how to claim the expenses as a self-employed teacher, and what are the teacher tax deductions in this regard. Let us kick-start the discussion to gather more information.


Need Help or Have a Query? Get in touch with our professionals at AccountingFirms. Connect with the Best Accounting and Tax Experts near you in just 3 minutes – Register now for Free!


What are Some Examples of Self-Employed Teacher Tax Deductions in the UK?

Some common examples that you can use as the expenses and deductions from the gross salary can be made easily are listed in the following:

  1. The amount spent on the training courses.
  2. Space used for the office or the studio.
  3. The expenses like office equipment can involve the phone, printers, computers and the laptop.
  4. Amount spent on business travel.
  5. Amount spent on the marketing process and the material like maintaining the website.

Furthermore, there can be anything that you have spent on your business, can come under the list of expenses. You can claim the possible options. You must ensure to be organised in this regard. The simple way to do this is to make a spreadsheet and add the spending and earning details to it.


What are Allowable Expenses for a Self-Employed Teacher in the UK?

This is an important thing to be aware of if you are a self-employed teacher in the UK, you are eligible to deduct the expenses from your income. In case you have spent an amount on buying anything related to teaching, you can deduct the expenses of a certain thing from the amount of your gross salary. This will even help to lower the tax bill you will receive.


Why Do You Require to Do a Self-Assessment as a Teacher?

When you are a self-employed individual who is offering teaching services for students, it is mandatory for you to declare your income to HMRC. This is important because it will help HMRC to make calculations about the tax you owe to HMRC for every tax year. This is normally done by doing the process of self-assessment tax reruns. Before you plan to do the self-assessment tax returns, you will have to go through the self-assessment process which is online and the deadline for this is the 5th of October. This will help you to pay the tax for the tax year that has just ended.

Moreover, when you are working as a self-employed teacher for the tax years 2023 and 2024, the registration of self-assessment must be done before the 5th of October in the year 2024. However, the tax payment can be made before the 31st of January 2025. Also, it is imperative to know that you will be liable to pay tax if the amount of your earnings exceed the limit of the personal allowance in the UK.


How Much Tax Do You Owe Normally to HMRC When Being Self-Employed in the UK?

Normally if you are working as a self-employed teacher in the UK, you will have to pay income tax and national insurance contributions as well. Now the question that might arise here is how much tax is to be paid by a self-employed teacher in the tax year 2023-2024. Well, the rate applicable to your income tax is different and it depends on the amount of income that you are earning. In case the income is not more than the limit of the personal allowance, there will not be any tax liability.

However, the basic rate of tax will be applicable if you are earning within the range of £12,571 to £50,270. The basic rate of tax is 20 percent in this case. The higher tax rate of the tax is 40 percent and it is applicable if you are earning within the range of limit  £50,271 to £125,140. The additional tax rate is 45 percent which is applicable if you are earning more than the figure £125,141.

Moreover, when the earning is more than the amount of personal allowance, income tax will be paid in the UK. However, you will be liable to pay the national insurance if your earning exceed the figure of £6,725. There are several state benefits that you can enjoy if you are paying national insurance. There are two classes of national insurance, named Class 2 and Class 4. If you are a beginner as a self-employed teacher, you can choose to pay class 1 of national insurance.


The Bottom Line

Now that you have gathered a fair amount of information about what is self-employed teacher tax in the UK and how it is implemented, we can bring the discussion towards wrapping up. Being a self-employed teacher in the UK is beneficial if you are aware of certain facts. You will have to deal with the tax liability also to earn the most and the good news is that the expenses you spent on the business can be claimed as well. All you have to do is to declare your income to HMRC. So that they can calculate the tax. This will give clarity on what you owe in the form of tax. We hope these few minutes of reading will help you better understand how to handle the self-employed teacher tax in the UK for a better future in this career.


Paying your tax bills on time and accurately is a daunting and time-taking exercise. AccountingFirms can help you in managing your taxes and pay your taxes on time with the help of professional accountants.


Disclaimer: All the information provided in this article on self-employed teacher tax in the UK, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.