A1 Tutors 22 Canterbury Road, Flitwick, Beds. MK45 1TZ Tel. 01273 413855 Issue 174 September 2010 Tax All tutors working with A1 Tutors do so on a self employed basis. This is clarified in our information sheet for applicant tutors. This means that you are responsible for your own tax and insurance. What this means in real terms is that the agency does not deduct any stoppages from your earnings for tax and National Insurance. It’s up to you to pay the government their share. The plus side from your point of view is that you can minimise what you pay them by deducting any business costs from your earnings, thereby reducing your profit. Less profit equals less tax. I use an accountant who works out of a converted barn at the back of his house in Steppingley. His name is Tim Kemp, and he’s much cheaper than impressive looking companies with oak tables. He’s worth a call on 01525 717141. As a self employed tutor, you can earn up to approx. £6,000 per year profit before becoming eligible for tax. That’s profit, not earnings. You could, for example, earn £10,000 but only show £2,000 if you spent enough on costs. Keep receipts for everything you buy, e.g. stationery, books, batteries (they might be for a calculator, or a guitar tuner if you’re a music tutor) teaching materials, and, most of all, motoring costs. You could put down, for example, that 99% of all your motoring is for your tutoring. Therefore, all your fuel, repairs and maintenance bills should have 99% of them showing as costs against tax. If you run a car, you must have paid for it (unless you were given it!). The cost of that car (99% of which might be business use) goes against tax. Even if you bought it before you started tutoring, it was possibly part of your start-up costs for your forthcoming business venture. However, you can’t write off the whole cost of the car right away. You can write off 25% of the cost the first year, and 25% of the current value of the car each of the next 3 years. It’s the tax man’s way of preventing you changing the car every year and claiming the cost against tax. Finally, if you are using a room in your house for tutoring or office work, count the total number of rooms in your home. If there are, e.g. six rooms in your home and you are using one for business purposes, you can claim one sixth of all your heating, water, council tax etc. bills as costs against tax. Beware, though; when you sell up you could just be asked to pay some of it back in Capital Gains Tax. Finally finally, even if you are below the tax threshold, keep careful records of everything you earn and
spend. The tax man might one day find his own way to you, and say, “I believe you’ve earned
£100,000 and I want my 20%.” Please keep your own earnings records rather than ask us. Our records show agency fees received, but not the gross fee you received, which can vary depending on level and distance travelled. When we submit our books to the accountant, he is interested in our profits, not yours, so we don’t keep unnecessary records. You should register as self employed even if you are earning very little. Better to pay little or no tax and stay within the law than find yourself on the end of the Great British bulldog’s toothy grip. This is the knowledge that I have, but to be completely sure, or to get more detailed information, I would suggest speaking to an accountant such as Tim. He’s very affable and helpful. One World Club The last show was a huge success, full to capacity as usual. Before the show I went on and on about two
acts in particular, George Anthony and MK A Capella, because I was just so taken with their level of talent.
Now you can see for yourself whether I was telling the truth by viewing their performances at The next show is September 6th. Usual place, Cruck Barn, Milton Keynes Discovery Centre, Bradwell Abbey, Milton Keynes, MK13 9AP. Doors open 6.30 p.m. Performances from 7.30 p.m. Free Entrance, Free Parking. We’ve got another really special show planned as it’s our first birthday party. Team members Vicky & Andy Scrase have come up with the idea of fancy Dress! Dressing up is not obligatory; some people simply don’t do fancy dress. But that’s no reason to miss out on the entertainment and great atmosphere. However, if you’d like to come in fancy dress or ethnic costume, you won’t be alone, as most of the team will be dressed up. I’ll be wearing the cowboy outfit, but won’t be carrying any guns, as five years in jail doesn’t appeal to me! I can now give you the full line up: Sabina Adatia. Glamorous Bollywood dancer, Sabina, is one of the most exciting dance acts ever to appear at One World Club. Simone Robinson is one of those singers who sends shivers down your spine. Checkout a previous performance on Youtube together with Natasha Silver. Simone is on the left. Young Rocker Natasha Silver was made for stardom, with her powerful voice and Jimi Hendrix style electric guitar
playing. Watch out for her on the next Britain’s got talent, and see her on Youtube at Serandib are an astounding Sri Lankan vocal group who remind us what One World Club is all about! Duncan Babbage plays the saxophone with raw passion Trosky is a charismatic performer of his own hip life compositions. The Metcalf Family get the hands clapping and feet a’stomping with Appalachian country music American singer Joan Harris turns the audience into a team, singing two songs at the same time. So it’s going to be a fun night out, just like always! Some say the best part of One World Club is the atmosphere, just like one big happy family having fun. That’s how the world should be, but if the world can’t get it together, we can. Join us, be part of the family! It’s all free and there are free crisps and chocs on the tables. OPEN MIC TIME invites up to 4 acts to have a go. One piece only, but if the audience like you you’ll be invited back for a longer spot at a later date. That’s all for another month. See you September 6th? Have a good month, Andy
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