Tutoring Business P&L Calculator 2025/26
Model the profit and loss for a tutoring business in 2025/26 — comparing the freelance/sole trader model against running a tutoring agency with employed or self-employed tutors. Calculate revenue capacity, cost structure and realistic owner profit.
Key Inputs
- Business model: sole trader freelance, or agency with multiple tutors
- Number of tutors (agency model): employed vs self-employed (affects NI and liability)
- Average tutor session rate charged to clients (£/hr)
- Tutor payout rate (% of session fee paid to tutors — agency model)
- Average weekly billable hours per tutor
- Fixed costs: platform/software, insurance, advertising, accountancy (£/month)
- Variable costs: payment processing fees (%), tutoring materials (£)
What You'll Get
- Annual gross revenue (£)
- Gross profit after tutor payments (agency model)
- Net profit after all fixed and variable costs
- Owner take-home pay (gross and net of tax for sole trader)
- Break-even: minimum sessions/week to cover fixed costs
Important Notes — 2025/26 Rates & Caveats
UK tutoring market 2025: the private tutoring market is estimated at £6-8 billion annually. Agency models typically pay tutors 60-80% of the client fee, retaining 20-40% as margin. Self-employed tutor models reduce NI liability but introduce IR35 risk if tutors work exclusively for one agency. Platform fees vary: MyTutor, Tutorful and Superprof take 20-30% of session fees. Employing tutors triggers employer NI at 15% from April 2025, employer pension contributions (minimum 3%) and holiday pay obligations.
Frequently Asked Questions
Should a tutoring agency use employed or self-employed tutors?
Self-employed tutors reduce employer NI and holiday pay costs but carry IR35 risk if tutors lack genuine self-employment indicators (multiple clients, own equipment, substitution rights). HMRC has challenged tutoring agency models where tutors work exclusively for one agency. Employed tutors bring higher costs but greater control, TUPE protection and reduced litigation risk. The Employment Rights Act 2024 strengthened worker rights for those in ambiguous relationships.
What is a typical gross margin for a UK tutoring agency?
Established tutoring agencies typically retain 25-40% of the client session fee as gross margin — paying tutors 60-75% of the fee charged. On a £50/hr session, the agency retains £12.50-£20 before overheads. Net profit margins after platform costs, insurance, marketing and administration typically run 10-20% for well-run agencies. Solo tutor businesses can achieve 70-80% net margins as overhead is minimal.
Do tutoring agencies need to register with Ofsted?
Tutoring agencies providing tuition to under-8s for more than 2 hours per day, more than 4 days per week, must register with Ofsted as a childcare provider. Agencies providing tuition exclusively to children aged 8 and over, or to adults, do not require Ofsted registration. However, tutors working with children under 18 should hold an Enhanced DBS check, and agencies have a duty of care to ensure this.
Related Calculators
Use the interactive Tutoring Business P&L Calculator
Run real numbers instantly — free, no sign-up required.
Go to Education Calculators