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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.
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

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