Navigating Expenses and Taxes: A Comprehensive Guide for Self-Employed Personal Trainers

Let’s be honest, most personal trainers don’t go into business excited about tax returns. But if you’re running your own PT business; whether as a sole trader or through a limited company - you can’t avoid it. This guide breaks down what you need to know, in plain English. We run through everything from when you pay your taxes and what expenses you can claim as a personal trainer.

When you’re self-employed, tax and National Insurance aren’t deducted automatically. It’s up to you to work out your profits, report them to HMRC, and pay your tax bill each year.

We’ll cover how to get registered, what tax you’re responsible for, what expenses you can claim, and when it all needs to be done.

Being your own boss has its perks, but the tax side can feel like a minefield. That’s where we come in. At KM Accountancy, we specialise in helping PTs and fitness professionals stay on top of their tax returns, keep things compliant, and make sure you’re not paying more tax than you need to.

And while it’s not compulsory to have an accountant, plenty of PTs find it’s worth it for the time, stress, and potential savings.

Do I need to tell HMRC I'm Self Employed?

As soon as you make more than £1,000 in a tax year (before expenses) from your PT business, you need to tell HMRC and register for Self Assessment. This £1,000 is known as the trading allowance.

The key date to remember? 5 October after the end of the tax year you started trading. If you miss that, you could face penalties.

If you’ve set up a limited company, it’s slightly different. Directors still need to register for Self Assessment if they take income outside PAYE (like dividends if you're a shareholder too), have untaxed income, or earn over £100,000.

How do you register?

You can register online via the HMRC website, it’s pretty straightforward. Or if you’d rather not deal with it, we can sort it for you. Once you’re registered, HMRC will send you your Unique Taxpayer Reference (UTR) in the post. You’ll need that to file your tax return.

What Happens If You Make a Loss?

If you spend more on your business than you make (especially common in your first year), you still need to do a tax return.

The good news?

• You can carry that loss forward and offset it against future profits.

• Or in some cases, you might be able to offset it against other income, like a PAYE salary, which could trigger a tax refund.

  
  

For limited companies, losses can be carried forward or back a year if you paid Corporation Tax.

When Do You Need to File & Pay Your Tax?

Self Assessments

• Tax year ends: 5 April

• Tax return and tax payment deadline: 31 January the following year

  
  

If your tax bill is over £1,000, you’ll also have to make payments on account - two advance payments in January and July, based on your last tax bill.

And yes - miss the 31 January deadline by even a day and you’ll get an automatic £100 penalty, even if you don’t owe anything.

Corporation Tax for Limited Companies

Tax year ends: typically the end of the month 12 months after incorporation unless changed otherwise.

Tax return deadline: 9 months after the tax year

Payment deadline: 1 day after the tax return deadline

What Income Do You Pay Tax On?

You’ll pay Income Tax and Class 2 & Class 4 National Insurance on your profits (that’s your income after expenses).

You’ll also need to tell HMRC about any other income you have, like:

• PAYE wages

• Rental income

• Dividends

• Savings interest

• Foreign income

• Capital gains

If you run your PT business as a limited company, the company pays Corporation Tax on profits, and you’ll pay personal tax on any salary or dividends you take. You can only be paid dividends if you are a shareholder, more information on this here.

What Expenses Can Personal Trainers Claim?

When you’re running your own PT business, you can claim expenses that are wholly and exclusively for your business to reduce your tax bill. This means the costs must be directly related to running your business - not personal or mixed-use.

Here’s a breakdown of common expenses PTs can claim, with examples and watch-outs:

1. Accountancy & Bookkeeping Fees

You can claim the cost of an accountant, bookkeeping software (like FreeAgent or Xero), or any tax-related support (like Self Assessment services).

💡 Even if you only use an accountant once a year, it’s still fully deductible.

2. Advertising & Marketing

Any costs to promote your PT business, including:

• Website design & hosting

• Social media ads (Facebook, Instagram, TikTok)

• Business cards, flyers, posters

• Sponsoring local events

• Photography & video shoots for content

🚫 You can’t claim for general personal social media or ads promoting personal events - it must directly market your PT business.

3. Gym Rent & Studio Hire

If you rent space in a gym or studio to train clients, this is fully deductible.

📘 If you pay a commission to a gym (like per session fees), that’s also claimable.

4. Software & Apps

You can claim for business tools like:

• My PT Hub

• PT Distinction

• Trainerize

• Lenus

• Truecoach

• Workout planning & progress tracking apps

• Payment processing software (like Stripe or PayPal fees)

  
  

5. Fitness Equipment & Tools

You can claim the cost of buying and maintaining equipment used for clients, including:

• Weights, kettlebells, resistance bands

• Yoga mats, skipping ropes, TRX kits

• Stopwatches, measuring tools

🚫 Be careful if you use the equipment personally as well, you may only be able to claim a proportion for business use.

6. Business Insurance

Essential for PTs!

• Public liability insurance

• Professional indemnity insurance

• Equipment insurance

📘 Always keep your policy documents to back up the claim.

7. Uniform & Branded Clothing

You can claim clothing if it’s branded with your business logo, such as:

• T-shirts, hoodies, jackets

• Branded face masks, hats

🚫 Standard gym wear (like Nike trainers) isn’t allowed unless it’s protective gear or branded as part of your uniform.

8. Training, CPD & Qualifications

You can claim costs for courses that maintain or improve your existing skills, such as:

• CPD courses

• Specialist fitness certifications (e.g. kettlebell training, pre/post-natal fitness)

• First Aid refreshers

🚫 You can’t claim initial qualifications that set you up as a PT (e.g. your original Level 3 Diploma).

9. Travel, Mileage & Subsistence

Travel to see clients, events, or courses is claimable:

• Mileage if using your own car (use HMRC’s approved mileage rates)

• Public transport fares

• Hotels & meals if you need to stay overnight for business

🚫 Everyday commuting to your regular gym is not deductible - it’s classed as ordinary commuting.

10. Mobile Phone & Internet

If you use your phone and internet for business (calls, bookings, online coaching):

• You can claim a proportion of the costs that relate to business use

• Keep a log or reasonable estimate to support your claim

🚫 Don’t try to claim 100% unless you have a separate phone for business.

11. Home Office Costs

If you run online coaching, do client admin, or planning from home:

• You can use HMRC’s simplified flat rates (based on hours worked from home)

• Or claim a proportion of actual costs (electricity, heating, rent)

📘 Keep it reasonable - only the space and time used for business counts. If you are our client we can calculate this for you

⚡ Common Mistakes PTs Make with Expenses:

❌ Trying to claim personal gym wear (without branding)

❌ Overclaiming personal travel or food

❌ Forgetting to apportion mobile phone and home office use correctly

What Expenses CAN’T Personal Trainers Claim?

Not everything you spend money on as a PT can go on your tax return. Here are a few common ones that HMRC won’t accept:

• Anything personal (clothes, meals, travel if it’s for personal use or mixed with business trips)

• Gym memberships (even if you train clients there - unless you rent space or pay per session, which is different)

• Client entertainment (meals, drinks, gifts for clients aren’t allowed)

• Parking fines, speeding tickets, or other penalties

• Food and drinks when working locally (you can only claim if you're travelling away overnight for work)

• Childcare costs (even if it allows you to work)

• Commuting from home to your usual gym or studio (HMRC class this as ordinary commuting)

• Late filing or payment penalties from HMRC

• Life insurance (unless it’s a ‘relevant life’ policy under your limited company)

• Your own wages, tax or NI if you’re a sole trader (as you and the business are the same for tax purposes)

Can Pension Contributions Save Me Tax?

Absolutely. It depends on how you’re set up.

If you’re a sole trader, pension payments aren’t a business expense... but they still help reduce your personal tax bill. They can extend your basic rate tax band if you earn over £50,270 (2024/25).

If you run a limited company, you can make pension contributions directly from your company, and they are classed as a business expense. This is a smart move, as it saves Corporation Tax and helps build your pension pot.

How Do I Pay My Tax Bill?

Once your tax return is submitted, you can pay HMRC through your online account.

Or, you can pay using:

• Card (online)

• Direct Debit

• Bank transfer

• Cheque

• Through your tax code (if you owe less than £3k and file by 30 Dec and have PAYE income)

What Are the Tax Rates?

If you’re a Sole Trader:

You’ll pay:

• Income Tax on your profits

• Class 2 NI (£3.45/week if profits are over £6,725)

• Class 4 NI (9% on profits over £12,570)

  
  

These apply across all your income; so your PT income gets added to any other income you may have.

If you’re a Limited Company:

Your company pays:

• Corporation Tax (currently 19%-25% depending on profits)

You personally may pay:

• Dividend Tax on income you withdraw

• PAYE income tax on any salary you take (you’ll usually run payroll to ensure you earn enough for your state pension year)

What Records Do I Need to Keep?

You’re legally required to keep all your business records for at least 6 years + the current tax year. That includes:

• Invoices for clients

• Expense receipts

• Business bank statements

• Contracts or agreements

• Anything related to income or costs

  
  

If HMRC ever asks for evidence and you don’t have it - you can be fined.

How to Stay Organised (and Sane)

Here’s what we recommend to all our PT clients:

• Open a separate business bank account: Even if you’re a sole trader, this makes things 10x easier when tracking income and expenses. It’s a legal must-have if you’re a limited company.

• Use bookkeeping software like FreeAgent or Xero. It helps you stay on top of income, track expenses, and even estimate your tax. We can help you get set up.

• Store everything in one place. Either in the cloud (Google Drive, Dropbox, or FreeAgent) or physically (just not in a shoebox under your bed). We always recommend on the cloud.

Key Dates for Personal Trainers

Here are the deadlines to keep in your calendar:

Sole Traders:

• 31 Jan – Deadline to file your Self Assessment and pay any tax

• 31 Jan & 31 Jul – Payments on account (if tax bill > £1,000)

Limited Companies:

• 9 months after year end – Deadline to file company accounts with Companies House

• 12 months after incorporation – Confirmation statement due

• 19th of every month – Director payroll deadline if you run monthly PAYE

Staying on top of these keeps you in HMRC’s good books, and avoids unnecessary penalties.

Do I Need to Register for VAT?

You only need to register for VAT if your total sales go over £90,000 in any rolling 12-month period, not just per calendar year.

If you get close, it’s worth monitoring monthly. You can register online through your HMRC account.

Should I Switch to a Limited Company?

If your PT business is growing and profits are increasing, it might be worth considering. A limited company can offer:

• Better tax planning options

• Protection of your personal assets

• A more professional image for certain clients

But it also comes with:

• More admin

• Potentially higher accounting fees

• Public disclosure of your business info on Companies House

Not sure? Chat with us and we’ll help weigh up what’s best for your situation.

📞 Need Help?

If you’re unsure what you can claim, need help filing your tax return, or want advice tailored to your PT business, we’re here for you.

Visit www.kmaccountancy.co.uk and fill our enquiry form and one of our friendly accountants will be in touch within 24 hours.

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Quick Disclaimer

This info is general guidance and doesn’t replace personalised advice. Always speak to an accountant about your specific situation.