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 - these three components are entirely covered by the named commission rate.
The Tutorfair commission pays for the running of the site, which is what allows us to provide our services to tutors and clients.
The 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.. 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 20%)
- We work out a new amount, of which Tutorfair gets 20% (which includes the Tutorfair commission of approx. 16.5%, VAT and 1% charity donation) and the tutor gets the rest (80%).
- The tutor wants to earn £20, so this new amount must be £25 - this is the price the client pays