UK Tax Guide for Self-Employed Personal Trainers

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As a former Chartered Accountant, I understand how confusing business registration and taxes can be for self-employed professionals. In this guide, I'll provide you with essential information on business registration, VAT, tax deductions, and returns, specifically tailored for self-employed personal trainers.

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This guide focuses on self-employment taxes. If you operate through a Limited Company, you will face different tax considerations, such as corporation tax and dividend tax.

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How to Register as a Self-Employed Personal Trainer

To register as self-employed and obtain a Unique Taxpayer Reference (UTR) number, you need to apply with HMRC once your income (not profit) exceeds £1,000 within a tax year (6th April to 5th April). Ensure you complete your registration by 5th October following the end of the tax year when you surpass the £1,000 threshold.

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Even if your earnings from personal training are modest, you must still register with HMRC and file a tax return once you cross the £1,000 income limit. Filing a tax return allows you to record expenses, which can create a tax loss that may reduce future tax liabilities.

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Alternative Business Structures

Other business structures include:

• Limited Company

• Partnerships

These may offer better tax advantages or protection from creditors but typically involve more complex reporting requirements and may necessitate hiring an accountant.

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Choosing the Right Business Structure

For the remainder of this guide, we'll assume you are registered as self-employed.

 

How to Calculate Your Tax

The amount of tax and National Insurance you owe depends on your taxable profit after deducting expenses, allowances, and reliefs.

• Income Tax: You pay 20% on income over £12,500, 40% on income over £50,000, and 45% on income over £150,000.

• Class 2 National Insurance: Paid at a flat weekly rate when earnings exceed £6,475.

• Class 4 National Insurance: Charged at 9% on earnings over £9,501.

HMRC will calculate your tax liability based on the information you provide in your tax return.

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Tax Deductions for Personal Trainers and Fitness Instructors

Claiming allowable business expenses is a straightforward way to reduce your tax bill. Typical tax-deductible expenses include:

• Website design & development

• Laptop

• Web hosting

• Licences, software, and subscriptions

• Training equipment

• Products sold to clients, like supplements

• Training and courses

• Home office use

• Insurance

• Travel and mileage

• Legal and accounting fees

• Bank charges for a business account

For expenses that are used for both personal and business purposes, such as a mobile phone, you can only claim the portion used for business. For example, if you use your phone 60% for work, you can claim 60% of the bill.

 

Expenses that are not deductible include:

• Fines and penalties (e.g., parking fines)

• HMRC interest and penalties

• Training for new skills

• Food (except in specific situations)

• Personal expenses

 

Tax Returns for Self-Employed Personal Trainers

As a self-employed personal trainer, you must adhere to HMRC's self-assessment rules. You need to submit a tax return online by 31 January each year, and make tax payments by 31 January and 31 July.

 

Keeping Tax Records

You are required to maintain records of all income and expenses for 6 years. This includes receipts, cash payments, and bank statements. To simplify record-keeping and tax return preparation:

• Open a separate bank account for business transactions (e.g., Starling Bank).

• Use a secure cloud storage system (e.g., Google Drive or Dropbox) for your records.

• Regularly review your finances and bookkeeping.

VAT

Value Added Tax (VAT) is applied to most goods and services. Businesses with a turnover of £85,000 or more must register for VAT, charge VAT to customers, and submit VAT returns, usually quarterly.

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Additional Resources for Self-Employed Personal Trainers:

• How to Fill In Your Tax Return Online

• Comprehensive Guide to Self-Employment Taxes

• Do I Need to Register My Side Hustle as a Business?

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