Hosting Foreign Students and tax implications

evi3000

I will soon be hosting foreign students, providing full board and a set number of hours of English tuition.

My question is this:

Will the money I earn be exempt from tax under the rent a room scheme (limit £4250 - I think) or do I have to pay tax as I am providing full board and tuition?

Do I have to register as self-employed if I go over the limit or should I register either way?

Thanks,
evi3000

fengirl_2

You need to make it clear with the agency or school which is sending the students about how much of the weekly payment relates to tuition. I would think they would want to specify this as well - otherwise you could give them half an hours tuition and be paid £100!
Once this is clear, the amount for board and lodging will come under rent a room and the tuition part will be self employment as a TEFL tutor for which you will need to register as self employed. When you complete your self assessment, you will only show the tuition income and expenditure and the rent a room profit will be shown in the land and property pages (if there is anything to declare).