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How is the commission calculated?

Last Updated: Nov 29, 2017 08:29AM GMT
When a client buys a lesson with Tutorfair, the lesson price goes to four different places. The first and biggest component goes to the tutor as a fee for the lesson. The rest is divided into Tutorfair commission, a small amount of VAT, and a donation to our charity.

The Tutorfair commission pays for the running of the site, which is what allows us to provide our services to tutors and clients.
T
he donation to our charity is what makes up the "fair" in Tutorfair. This is optional for clients, but if they choose to opt-out it won’t affect what a tutor gets paid - only what goes to our charity - the Tutorfair Foundation. The Foundation arranges volunteer tutoring online and in inner-city schools for children who can’t afford private tuition.

The VAT is the doing of Mr Taxman.

How is it calculated?
 
We calculate the commission as a fixed percentage of the total price, excluding VAT and the donation. This is an important point and it looks something like this:
  • The tutor decides their price. (Let’s say it’s £20).
  • We see what commission rate the tutor is on (Let’s say it is 18%)
  • We work out a new amount, of which Tutorfair gets 18% and the tutor gets the rest (82%).
  • The tutor wants to earn £20, so this new amount must be £24.39 (because £20 is 82% of £24.39)
  • Tutorfair gets the other 18%, which is £4.39
 
We then calculate VAT and donation based on this amount
  • The donation is 1% of this £24.39. Here that is £0.24
  • VAT is calculated as 20% of the tutorfair commission.
    • 20% of £4.39 is £0.88
 
We add it all together to see what the client will pay.
  • £20 lesson price + £4.39 commision + £0.24 donation + £0.88 VAT = £25.51
 
If the client chooses to opt-out of the donation, the same steps are gone through, without the donation. The tutor’s price, VAT and the commission are unaffected:
  • £20 lesson price + £4.39 commision + £0.88 VAT = £25.27

Contact Us

7a14379ff949bbf583160936bd0ee0d3@tutorfair.desk-mail.com
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