OKVED codes tutoring and freelancing

How to work as a tutor? Do I need to open an individual entrepreneur and pay taxes? What documents should I fill out? How to accept payment for services rendered? In this article you will find answers to these and many other questions.

From January 1, 2021, tax holidays for tutors are cancelled. To officially work, you must register as self-employed or open an individual entrepreneur
A tutor working as an individual entrepreneur can choose a simplified taxation system or a patent, if there is one for this type of activity in your region

Who can become a tutor

Currently, individual training for children and adults, preparation for school and exams, is among the services that are in high demand.

Tutor is a teacher who provides educational services on an individual basis.

Most often, experienced or novice teachers who combine their main job with providing individual services, or those for whom tutoring is the only source of income, become tutors. In all cases, teachers receive money by teaching individually or in groups. This teaching mode is convenient for both teachers and students. There is an opportunity to attend private lessons and gain the necessary knowledge in the chosen subject.

Open an IP for free

Today, many companies providing educational services have opened, but tutors continue to be in high demand. And you don’t even need any special advertising. Word of mouth works great here when parents of students recommend this teacher to others.

How the law regulates the activities of tutors

The Federal Law “On Education” of 2012 regulated the activities of only individual entrepreneurs providing educational services independently or with the involvement of additional teachers. There were no work options for individuals without the formation of an individual entrepreneur until 2021, until changes were made to the Tax Code. Then, in addition to individual entrepreneurs, the status of a citizen appeared, providing services to individuals for personal, household and other needs.

A new paragraph 70 was added to Article 217, where income received by individuals from individuals for the provision of such services was excluded from taxation. This list includes those who look after and care for people, do housekeeping, clean rooms and tutors. Tax holidays were introduced for these categories until the end of 2021. Most likely, they will be extended further.

It's simple: the bank prepares the documents and sends them to the tax office, and in the meantime you do business!

Open an individual entrepreneur or LLC

Yes, you can obtain Russian citizenship if there are grounds under Article 14 of the Law on Citizenship of the Russian Federation

Article 14. Law on Citizenship of the Russian Federation.

Admission to citizenship of the Russian Federation in a simplified manner

1. Foreign citizens and stateless persons who have reached the age of eighteen years and have legal capacity have the right to apply for admission to citizenship of the Russian Federation in a simplified manner without complying with the conditions provided for in paragraph “a” of part one of Article 13 of this Federal Law, if these citizens and faces:

a) have at least one parent who has citizenship of the Russian Federation and lives on the territory of the Russian Federation;

b) had citizenship of the USSR, lived and are living in states that were part of the USSR, did not receive citizenship of these states and, as a result, remain stateless;

c) has become invalid.

2. Foreign citizens and stateless persons residing on the territory of the Russian Federation have the right to apply for admission to citizenship of the Russian Federation in a simplified manner without complying with the conditions for the period of residence established by paragraph “a” of part one of Article 13 of this Federal Law, if the specified citizens and persons:

a) were born on the territory of the RSFSR and had citizenship of the former USSR;

b) have been married to a citizen of the Russian Federation for at least three years;

c) are disabled and have a capable son or daughter who has reached the age of eighteen and is a citizen of the Russian Federation;

d) have a child who is a citizen of the Russian Federation - if the other parent of this child, who is a citizen of the Russian Federation, has died or has been declared missing, incompetent or limited in legal capacity, deprived of parental rights or limited by a court decision that has entered into legal force in parental rights;

e) have a son or daughter who has reached the age of eighteen, who are citizens of the Russian Federation and who have been declared incompetent or limited in legal capacity by a court decision that has entered into legal force - in the event that the other parent of these citizens of the Russian Federation, who is a citizen of the Russian Federation, has died or by a court decision that has entered into legal force, is declared missing, incompetent or limited in legal capacity, deprived of parental rights or limited in parental rights;

f) after July 1, 2002, received professional education in basic professional educational programs that have state accreditation in educational or scientific organizations of the Russian Federation on its territory and have been working in the Russian Federation for a total of at least three years before the date of application for admission to citizenship of the Russian Federation;

g) are individual entrepreneurs and carry out business activities in the Russian Federation for at least three years preceding the year of applying for citizenship of the Russian Federation, and during this period their annual revenue from the sale of goods (works, services) as a result of business activities in types of economic activity established by the Government of the Russian Federation is at least 10 million rubles;

h) are investors whose share of the contribution in the authorized (share) capital of a Russian legal entity operating on the territory of the Russian Federation in the types of economic activity established by the Government of the Russian Federation is at least 10 percent. In this case, the size of the authorized (share) capital of such a legal entity and the size of its net assets must be at least 100 million rubles each, or the amount of taxes paid by such a legal entity to the budget system of the Russian Federation and mandatory insurance payments must be at least 6 million rubles per year per year. for at least three years from the date of investment;

i) carry out labor activity in the Russian Federation for at least three years before the date of application for admission to citizenship of the Russian Federation in a profession (specialty, position) included in the list of professions (specialties, positions) of foreign citizens - qualified specialists entitled to admission citizenship of the Russian Federation in a simplified manner, approved by the federal executive body exercising the functions of developing and implementing state policy and legal regulation in the field of employment and unemployment.

2.1. Foreign citizens and stateless persons permanently residing legally on the territory of the Russian Federation, recognized as native speakers of the Russian language in accordance with Article 33.1 of this Federal Law, have the right to apply for admission to citizenship of the Russian Federation in a simplified manner, provided that these citizens and faces:

a) undertake to comply with the Constitution of the Russian Federation and the legislation of the Russian Federation;

b) have a legal source of livelihood;

c) renounced their existing citizenship of a foreign state. Renunciation of citizenship of a foreign state is not required if this is provided for by an international treaty of the Russian Federation or if renunciation of citizenship of the Russian Federation is impossible due to reasons beyond the control of the person.

3. Disabled foreign citizens and stateless persons who arrived in the Russian Federation from states that were part of the USSR and registered at their place of residence in the Russian Federation as of July 1, 2002, have the right to apply for admission to citizenship of the Russian Federation in a simplified manner procedure without complying with the condition on the period of residence on the territory of the Russian Federation established by paragraph “a” of part one of Article 13 of this Federal Law, and without presenting a residence permit.

4. Foreign citizens and stateless persons who had USSR citizenship, arrived in the Russian Federation from states that were part of the USSR, and were registered at their place of residence in the Russian Federation as of July 1, 2002, or who received a temporary residence permit in the Russian Federation or residence permit, are admitted to citizenship of the Russian Federation in a simplified manner without complying with the conditions provided for in paragraphs “a”, “c” and “e” of part one of Article 13 of this Federal Law, if they declare their desire to acquire citizenship before July 1, 2009 Russian Federation.

5. Veterans of the Great Patriotic War, who had citizenship of the former USSR and resided on the territory of the Russian Federation.

6. A child and an incapacitated person who is a foreign citizen or stateless person is granted citizenship of the Russian Federation in a simplified manner without complying with the conditions provided for in part one of Article 13 of this Federal Law:

a) a child, one of whose parents has citizenship of the Russian Federation - upon the application of this parent and with the consent of the other parent for the child to acquire citizenship of the Russian Federation. Such consent is not required if the child lives on the territory of the Russian Federation;

b) a child whose only parent has citizenship of the Russian Federation - at the request of this parent;

c) a child or incompetent person over whom guardianship or trusteeship of a citizen of the Russian Federation has been established, with the exception of cases provided for in Part 1 of Article 13 of the Federal Law of April 24, 2008 N 48-FZ “On Guardianship and Trusteeship” (hereinafter referred to as the Federal Law “On guardianship and trusteeship") - at the request of the guardian or trustee;

d) a child placed under supervision in a Russian organization for orphans and children left without parental care, with the exception of cases provided for in paragraph 2 of Article 155.1 of the Family Code of the Russian Federation, upon the application of the head of the Russian organization in which the child is placed;

e) an incapacitated person placed under supervision in a Russian educational organization, medical organization, organization providing social services, or another Russian organization, with the exception of cases provided for in Part 4 of Article 11 of the Federal Law “On Guardianship and Trusteeship” - at the request of the head of the Russian organization in which the incapacitated person is placed.

7. In the event that foreign citizens and stateless persons who are participants in the State program to assist the voluntary resettlement of compatriots living abroad to the Russian Federation and members of their families are registered at the place of residence on the territory of the subject of the Russian Federation chosen by them for permanent residence in accordance with the specified State program, they can be granted citizenship of the Russian Federation in a simplified manner without complying with the conditions provided for in paragraphs “a”, “c” and “e” of part one of Article 13 of this Federal Law.

A tutor can no longer work officially and not pay taxes

From January 1, 2021, tax holidays for tutors are cancelled. During the previous three years, a tutor could provide educational services privately and not pay anyone anything. For this it was necessary:

work without opening an individual entrepreneur
teach independently, without the involvement of other teachers
submit a tax notice

To submit a notification, you had to download an electronic form from the Federal Tax Service website, print it out and fill out two copies. With your passport and notification, contact the tax office at your place of residence. They will put a mark there and that’s it, work calmly. You don’t need to submit any reports, and you don’t need to pay taxes either.

At the same time, you will carry out your activities strictly within the framework of current legislation. There is no time limit for submitting notifications. This can be done at any time. Today, everyone providing tutoring services is required to register their activities and pay taxes.

Explanations and clarifications

It is enough to have professional knowledge and skills in any field, and at the same time be able to easily convey this skill to other people - and you can engage in teaching and tutoring. This business does not require many investments; it can be carried out directly by the entrepreneur, or the businessman will organize it, coordinating the relationship of clients with his employees - full-time or freelance.

If an entrepreneur creates an organization providing educational services, he can do this in different forms:

Preschool education – programs aimed at developing personality, developing various skills, and training preschool children in one way or another. Such a business cannot include the services of a nanny looking after children during the day - such activities are classified as social services.
Primary education – assistance in children’s mastery of reading, writing, counting, norms of behavior, in the development of thinking and speech, attention, perception and other mental processes. Adults are not trained in this type of business.
Basic education includes not only the mastery of basic school subjects, but also the development of personal qualities, more professional pursuits of various hobbies, and the initial stages of professional activity in a particular field.
Higher education is the acquisition of professional skills in a particular specialty.
Additional education in special fields:

sports (football, volleyball, gymnastics, swimming, athletics, yoga, martial arts, etc.);
cultural (art, music, drama, dance).

NOTE! Foreign language teaching and religious education are not included in this type of activity.

Such a business can be carried out individually or in a group, at the client’s home or on the basis of specially equipped premises and centers.

Why does an individual entrepreneur need a tutor?

Can a tutor work without creating an individual entrepreneur? Yes, if you become self-employed. Currently, the self-employment regime operates on an experimental basis in 23 regions and has already shown its relevance. Tutors who do not open individual entrepreneurs will be able to switch to it.

What can you recommend to tutors today? If tutoring is your permanent and only income, you do not have an official job, open an individual entrepreneur or become self-employed, pay taxes and contributions to the pension fund. In this case, your work experience will continue and your pension savings will increase.

How to register for tutoring legally

on one's own

by personally submitting documents to the tax office or sending them electronically on the Federal Tax Service website

through MFC

using one of the banks offering this service

When submitting documents in person, you must print out the application form (you can download it on our website in the article “Documents for registering individual entrepreneurs and LLCs” or on the Federal Tax Service website). Then you fill out all the fields, following the rules, make a copy of your passport, pay the state fee of 800 rubles, and go to the tax office. Don't forget to take a receipt confirming payment of the fee.

When sending documents electronically on the Federal Tax Service portal, the application is filled out directly on the website, then, using a special program, it is packaged together with a copy of the passport and sent to tax specialists.

There is no need to pay a state fee, but an electronic signature will be required to sign the application. You need to do it yourself using one of the registration centers (list on the tax website). It’s even easier to create an individual entrepreneur through a bank.

IP via bank

Fill out the application, indicating your phone number, answer the questions in the electronic form. The bank will independently prepare a package of documents for registration and send it to the tax office. The bank will also provide an electronic digital signature for you. In this case, no duty is paid. Banking services are also free. This method is currently the simplest and most profitable.

Open an individual entrepreneur through a bank

Tax on tutoring and when a license is needed

An individual entrepreneur has the right to work under the general taxation regime or choose one of the special regimes. One of the simplest for reporting and paying taxes is the simplified tax system (USN). It is also convenient to take out a patent.

With a patent, you pay the cost of the patent and insurance premiums.
A patent is issued for a period of 1 month to a year, its price is determined by the region based on the average income in a given type of activity.
In the simplified version, you will need to pay quarterly tax and fixed contributions to the pension fund and the Compulsory Medical Insurance Fund. But, there is a benefit.

You can deduct insurance premiums from tax up to 100% and, accordingly, pay less. It's quite profitable. You work legally, gain seniority, increase your pension savings, and the tax can be 0 rubles. In addition, if you wish, as an individual entrepreneur you will be able to hire employees, obtain a license and open a training center. And this is a different level of business.

Individual entrepreneurs are required to pay fixed insurance premiums from the first day of official registration of their activities
Self-employed people working as tutors have the right not to pay contributions to the pension fund and compulsory health insurance fund

A tutor who provides educational services independently, without the involvement of other specialists, should not receive a license, regardless of whether he opened an individual enterprise or not. But, if you plan to hire teachers, you must obtain a license. To obtain it, you will have to select a premises that meets the requirements of the fire service, obtain permission from the SES, draw up and approve training programs, and conclude employment contracts with all employees.

Of course, it is possible to avoid the above costs if you register your training center as providing consulting services, without mentioning educational ones. Many training centers follow this path, including those preparing for passing the Unified State Exam.

IP for a tutor: USN or Patent?

USN - simplified taxation scheme

Patent, PSN - patent for the right to engage in tutoring activities

Officially get a job as a tutor.

Private tutoring or a patent for a tutor provide the opportunity to:

2. It is possible to officially receive income while combining your main job and business (individual tutoring).

3. Accept payments from legal entities.

4. Conclude contracts for the provision of services.

5. Receive various loans for high confirmed income.

6. Calmly advertise your services.

7. Feel like a full-fledged taxpayer; income from tutoring is taxes to the budget.

Is it difficult to operate as an individual entrepreneur (Do I need to hire an accountant to calculate taxes?):

1. Pay taxes, the amount and terms of payment of which are determined by the type of taxation that you have chosen.

2. Pay once to the pension fund (if there are no employees).

3. Submit a tax return. (If you want to save on the services of an accountant, you can fill out the tax return yourself)

4. Submit a report to the pension fund.

5. Certify the book of expenses and income from the tax inspector.

Individual entrepreneur tutoring: according to the simplified tax system or a patent?

First of all, you need to understand that the question of choosing an individual entrepreneur or a patent is not correct, since an individual entrepreneur will have to be registered in both cases, and then choose the Patent Scheme or the simplified tax system.

The scheme is as follows:

1. Register an individual entrepreneur.

2. Choose a taxation system. At this step, you need to decide what is more profitable for the tutor, 6% simplified tax system or a patent. To do this, let's carry out calculations.

Example (Tutoring-related expenses: patent)

The calculations in the example are valid for Moscow in 2015. If you choose a patent in another region, you should contact the regional structure of the Federal Tax Service.

The cost of a patent (tutoring) is 18,000 rubles. Other taxes required for individual entrepreneurs amount to about 21 thousand rubles. (contributions to the Pension Fund and the Compulsory Medical Insurance Fund.) A declaration submitted electronically will cost an additional 1 thousand rubles.

RESULT: the tutor's expenses (taxes under the patent scheme) will be about 40 thousand rubles annually.

Example (Costs related to tutoring: simplified tax system)

If our choice is the simplified tax system of 6%, the taxes required for individual entrepreneurs will again amount to 21 thousand rubles. In addition, it is recommended to open a bank account - expenses are about 12 thousand rubles.

If the annual income exceeds 300 thousand rubles, the tutor must pay an additional 1% to the Pension Fund when choosing this individual entrepreneur scheme. The costs of the electronic declaration are also retained. Let a tutor's monthly income be 35,000 rubles. Then the tutor’s expenses for taxes: (35,000 x 12 months x 0.06 individual entrepreneur rate according to the “simplified” tax system). Thus, we get 25,200 rubles, with 4,472 rubles. of which are tax deductible. In addition, you must additionally pay 1% of income exceeding 300 thousand rubles. to the Pension Fund (35,000 x 12 months - 300,000) x 0.01 = 1,200 rubles. That is, additional costs will amount to about 6 thousand rubles.

RESULT: Individual entrepreneur under the simplified tax system with a monthly income of 35,000 rubles. must also annually contribute approximately 40 thousand rubles to the budget.

OKVED for tutors:

It is recommended to select the following codes as the main type of business activity:

Tutoring: OKVED 80.42 —

Tutoring: OKVED 80.10.3 -

In addition, for the activities of individual entrepreneurs, the tutor has the right to additional types of activities (up to 20), we recommend choosing additional OKVED for tutors:

Fill out the registration form if you want to cooperate with us: work as a tutor.

These articles may interest you:

1. Step-by-step guide to registering an individual entrepreneur for a tutor

2. Working as a tutor

FSUE (Federal State Unitary Enterprise) - FSUE (Federal State Unitary Enterprise)
Ltd. (Limited) - used in English-speaking countries to indicate limited liability.
Inc. (Incorporated) - the same as Ltd., used in America.
Corp. (Corporation) - a corporation, or rather an enterprise, the authorized capital of which is divided into shares. Essentially the same as Ltd. and Inc.
Limited Duration Company (LDC) - A company with a limited duration. A company is created for a certain period, after which it must be liquidated or re-registered.
Pte.Ltd. (Private Limited) - This form of company registration is most often found in Asian countries, for example, Singapore.

Does a tutor need a cash register?

No. Tutors, including individual entrepreneurs, who work without employees and provide educational services, may not use cash registers when accepting payment for their services. The deferment is valid until July 2021.

If an individual entrepreneur hires at least one employee, it is necessary to purchase and register a cash register with the Federal Tax Service. This must be done no later than 30 days after signing an employment contract with him.

It's simple: the bank prepares the documents and sends them to the tax office, and in the meantime you do business!

Open an individual entrepreneur or LLC

JSC in English

ZAO stands for closed joint stock company. In principle, the same principles apply here as when transferring an LLC.

The abbreviation ZAO in English has its equivalent - Closed Joint Stock Company and will be abbreviated as CJSC. It is best to transliterate the abbreviation and write the foreign equivalent in parentheses.

Here's an example:

JSC “Smolenskoe” can be transliterated into English like this:

ZAO Smolenskoye (Smolenskoye, CJSC)

Which tax should a tutor choose in 2021: individual entrepreneur or self-employment

From the beginning of 2021, as an experiment, individuals working for themselves, the so-called self-employed, were offered to register their activities and pay “Professional Income Tax.” The new regime is already in effect in 23 regions. It can be used by individuals without employees and who have not registered their activities as individual entrepreneurs. It’s very easy to register as self-employed. On the Federal Tax Service website you submit an application online, send a copy of your passport, get access to your personal account and work.

No reporting is submitted, contributions to the Pension Fund and the Compulsory Medical Insurance Fund are paid voluntarily, that is, you don’t have to pay. The tax is calculated automatically and ranges from 4% to 6% depending on who they provide services to; in cooperation with legal entities and individual entrepreneurs, the tax is higher. Professional income tax replaces personal income tax, which is paid by individuals.

Tutors who have sent a notification to the tax office about the provision of paid services cannot switch to the self-employed tax. Because currently the income from their activities is not taxed.

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LLC in English

Limited liability company (LLC) is the most common legal form of doing business and is translated differently depending on which country the company operates with. In case of cooperation with foreign partners, difficulties may arise in the transfer of LLC. Let's look at the details.

Limited liability company is translated into English as Limited Liability Company, abbreviated as LLC. This option is relevant for the USA.

In the UK, Limited Trade Development - Ltd is used to refer to an LLC. The abbreviation in its foreign version is usually placed after the company name.

Let's look at an example.

LLC “Bristol” - the abbreviated Russian name into English should be translated as follows:

"Bristol" Limited Liability Company or

Bristol LLC

When choosing an English translation of “LLC”, you need to take into account the country of the counterparty company, but the American form of translation of details is more often used. There is no need to put a comma between the name of the organization and the legal form. In addition, the simple transliteration of LLC is often used, and the foreign equivalent is written in brackets - OOO (Limited Liability Company). Many experts advise using the transliteration option.

Example:

LLC "Bristol"

OOO “Bristol” (Bristol, LLC)

The company name itself should also not be translated into English, but rather transliterated, otherwise legal problems may arise. In some cases, the translation may be indicated in parentheses.

Tax deductions when paying for tutor services

Taxpayers paying for tutoring services have the right to receive a social tax deduction and return 13% of the amount spent on training. But, provided that the tutor has registered an individual entrepreneur indicating that he provides educational services and the corresponding entry is made in the Unified State Register of Individual Entrepreneurs. To receive a deduction, you must provide the Federal Tax Service with a document confirming the actual costs of training, for example, a receipt for payment, and submit a tax return within the established deadlines.

Advertising of tutor services

For an experienced tutor, especially a professional teacher working in an educational institution, finding students is easy and simple. He has potential clients right at his workplace. Even after his dismissal, he will be contacted for recommendations. But what about those who are just starting out? You need to advertise your services. How? The easiest way is to place an ad in the area where you will carry out your activities. It’s convenient for parents when they don’t have to take their child far to classes, but can take them to a neighboring house.

Recommendations from kindergarten teachers or teachers work great. See what children's and educational institutions are near you. Try talking to the staff, hand out your business cards. If you manage to find at least a few students, that’s good.

Conduct interesting and effective activities with them, and word of mouth will begin to work.

Don't forget about social networks. Publish a topic with your advertisement in local public pages. Tell what and who you teach, what success your students can achieve. Use Instagram, it is a very popular network that reaches a wide range of people. Read messages on social networks, maybe someone is looking for a tutor, respond, post your phone number, let them contact you. Offer to give the first lesson for free, and if you like everything, then sign up for the course. This is a good practice and builds trust among potential clients.

It's simple: the bank prepares the documents and sends them to the tax office, and in the meantime you do business!

Open an individual entrepreneur or LLC