Karren Brady on Taking Up a Side Hustle
By Karren Brady
Apprentice star and West Ham United vice-chair Karren Brady answers your career questions and meets an inspirational CEO.
Here she gives a reader advice on how to take up a side hustle in tutoring.
Q) I’m a teacher and recently a friend asked if I could tutor her son on a weekly basis for an hour at a time. She said she could pay me, so I don’t feel she’s taking advantage.
But I don’t know how to go about this in the correct way. To tutor in my own home, do I need to be inspected?
And if I enjoyed it and wanted to take on other kids as a bigger side hustle, would I need to think about tax implications?
A) Working in education is a highly rewarding job, and tutoring is a great way of earning extra income as and when it works for you.
All private tutors need to be set up with HMRC. Even if you are part-time, you still need to declare your earnings.
The most straightforward way would be to set yourself up as a sole trader – Gov.uk has a step-by-step guide on how to do this.
You will also need to fill in a self-assessment tax return, which will explain how to declare any extra money you’ve earned.
Set up a bank account so all your business expenses go in and out of one account, making it easier to manage.
It is not a legal regulation for you to be inspected, but it is common for tutors to take out public liability insurance, should there be any damage or injury to a third party in a place where you work, as well as professional indemnity insurance, which will provide protection against claims of negligence.