VAT and tax
for online coaches

This is general information, not tax advice. Rules change, so read the linked GOV.UK pages and ask an accountant. Pages read on 19 October 2026.

The trading allowance

GOV.UK describes the trading allowance as a tax exemption of up to £1,000 a year.

• If gross trading income is £1,000 or less, you generally do not need to tell HMRC. Keep records.
• If it is over £1,000, you can deduct £1,000 instead of your expenses.

You cannot claim both the allowance and your expenses.

Allowable expenses

GOV.UK lists expenses you can claim if you are self-employed.

• Insurance and bank charges.
• Advertising and marketing, including website costs.
• Office costs such as phone bills.
• Subscriptions and business-related training courses.
• Travel costs.

Money taken from the business for personal use is not an expense. For items you also use privately, only the business share counts.

The cash basis

GOV.UK explains the cash basis. You record income and expenses when money changes hands. You are not taxed on income you have not received. Sole traders can use it. Check the current rules.

The VAT threshold

GOV.UK says businesses must register for VAT if their taxable turnover is more than £90,000. See when to register.

Is coaching standard-rated or exempt

This is the open question. VAT Notice 701/30 on education and vocational training exempts private tuition in some subjects. It does not mention personal training. It points to Notice 701/45 for sporting and physical activities.

Whether your coaching is exempt depends on what you supply. Ask an accountant before you decide.

Sole trader or limited company

Both are common. A company is a separate legal person and has its own rules and costs. An accountant can compare them for your income.

Put your costs into the price calculator to see what you need to charge. The sole trader basics guide covers registering.

Where Trainersight fits

Trainersight does not do accounts. It keeps client records in one place.

Related: Price online coaching, Sole trader basics. Tool: Price calculator, Free tools.