What online fitness coaches and personal trainers need from an accountant

Why does a fitness business need a specialist approach?

Many coaches now earn from several places at once. A trainer might run in-person sessions, sell online programmes, take monthly app subscriptions and earn from brand content.

Each stream arrives differently, often through platforms that deduct fees before paying out. An accountant needs to record the full amount earned, not just what lands in the bank.

Fitness coaches who also post content face many of the same questions as creators. The creators hub covers those in more depth.

What income should a fitness coach record?

The table below lists common income types and what to keep for each. It contains no figures, because the right treatment depends on how your business works.

What happens when a platform takes a cut?

Coaching apps, marketplaces and payment providers usually deduct their fees before paying you. Your bank only shows the net amount, but your accounts normally need the gross sales and the fees as separate lines.

Recording only the net figure can understate your turnover. That matters for VAT registration checks, which look at turnover rather than profit.

AFE downloads platform statements each period and matches them to your bank. Refunds, chargebacks and currency conversion are recorded at the same time.

Which expenses can a coach usually claim?

HMRC guidance on expenses if you are self-employed says you can deduct costs used for the business. Personal use is not allowed, and mixed-use costs are claimed for the business share only.

For a fitness business, common costs include equipment, studio or gym hire, coaching software, insurance and travel between clients. Clothing, food and courses are areas where the rules are stricter, so each needs checking.

If you use the trading allowance instead of claiming actual expenses, you cannot claim both [VERIFY WITH HMRC / ADAM]. AFE compares the two and uses whichever the rules allow and suits your figures.

When do you need to register for Self Assessment?

Most self-employed coaches report their profits through a Self Assessment tax return. HMRC guidance on becoming a sole trader says registration is needed above a small income level [VERIFY WITH HMRC / ADAM].

New registrations have a deadline after the tax year ends [VERIFY WITH HMRC / ADAM]. Online returns and payment are usually due by 31 January [VERIFY WITH HMRC / ADAM]. AFE keeps track of the dates and files on your behalf.

If you are employed at a gym and coach on the side, you may still need a return for the side income. That depends on your total income and how it is paid.

Once your bill passes a certain level, HMRC may also ask for payments on account towards the next year [VERIFY WITH HMRC / ADAM]. AFE tells you what to set aside so the bill is not a surprise.

When does VAT come into it?

A business must register for VAT once its taxable turnover passes the registration threshold over a rolling period [VERIFY WITH HMRC / ADAM]. You can also register voluntarily below it.

Online programmes and app content sold to customers abroad can follow different VAT rules from in-person sessions in the UK [VERIFY WITH HMRC / ADAM]. Where your customers live can matter as much as how much you sell.

Registering late can mean paying VAT on past sales. AFE checks your turnover regularly so registration happens at the right time.

Should a coach be a sole trader or a limited company?

Most coaches start as sole traders because it is simple to set up. A limited company separates the business from you and changes how profits are taxed and taken out.

There is no single point where a company always makes sense. It depends on profits, plans, personal income and how much paperwork you want. AFE models both options from your real figures before you decide.

If you are just starting, business start-ups covers registration and early set-up.

What records should a coach keep through the year?

Good records make the return quicker and any HMRC question easier to answer. Keep these in one place, ideally in bookkeeping software. [CONFIRM: which bookkeeping software AFE supports]

• Platform statements showing gross sales, fees and refunds.
• Invoices for in-person sessions and any client contracts.
• Receipts for equipment, studio hire, software and insurance.
• A mileage log for travel between clients and venues.
• Contracts and invoices for brand deals and affiliate payments.

What should you look for in an accountant?

Choose someone who understands platform income and can explain your position plainly. These points are worth asking about.

• Experience with coaching apps, memberships and online programme sales.
• A clear way to record gross income and platform fees separately.
• Help deciding which expenses are business costs and which are not.
• Regular VAT checks as your online sales grow.
• Advice on sole trader or company structure, based on your own figures.
• Fees agreed in advance. [FEES MODEL: confirm with Adam]

How does AFE work with fitness businesses?

AFE prepares accounts and tax returns for online coaches, personal trainers, studio owners and fitness creators. The team sets up bookkeeping that records each income stream and keeps VAT under review.

See the online fitness businesses hub, accounts and tax returns and accounts and bookkeeping. Work is overseen by Adam Feyzi FCCA, and the first consultation is free.