{"id":6862,"date":"2020-09-04T14:28:28","date_gmt":"2020-09-04T13:28:28","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=6862"},"modified":"2024-03-28T16:51:06","modified_gmt":"2024-03-28T16:51:06","slug":"is-a-fitness-instructor-an-independent-contractor","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/is-a-fitness-instructor-an-independent-contractor\/","title":{"rendered":"Is a fitness instructor an independent contractor?"},"content":{"rendered":"\n<p>A fitness instructor can work either as an employee or as an independent contractor i.e. someone that is self-employed. In fact, <a href=\"https:\/\/www.hfe.co.uk\/personal-trainer\/careers\/personal-training-employed-vs-self-employed\/\" target=\"_blank\" rel=\"noreferrer noopener\">62%<\/a> of personal personal trainers and fitness instructors are self-employed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s the difference between employed and self-employed?<\/h2>\n\n\n\n<p>If you work as a fitness instructor, the main difference between being employed and self-employed is the control that you have over your working life.&nbsp;<\/p>\n\n\n\n<p>As an employee, your employer (i.e. the gym) takes care of your working timetable, your pay, your taxes and your holiday allowance.<\/p>\n\n\n\n<p>As a self-employed fitness instructor, you\u2019re in charge of when you work, you can set your rate of pay, you can take holiday when you want and you\u2019re in charge of paying your own taxes. That said, when it comes to holiday or sick days, you won\u2019t be paid for these like you are when you\u2019re under an employment contract.&nbsp;<\/p>\n\n\n\n<p>So being self-employed takes much more rigid money management.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what does it mean to be self-employed?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/-3ownjwzY8g?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What tax does a fitness instructor pay?&nbsp;<\/h2>\n\n\n\n<p>When you\u2019re self-employed, there are two types of taxes that you\u2019re liable to pay from your earnings:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Income Tax<\/li>\n\n\n\n<li>National Insurance<\/li>\n<\/ol>\n\n\n\n<p>Income tax is based on how much you earn. And it\u2019s a sliding scale as your income increases. Take a look at the 2024\/25 tax year rates of Income Tax:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Salary<\/strong><\/td><td><strong>Tax rate<\/strong><\/td><td><\/td><\/tr><tr><td>Up to \u00a312,570<\/td><td>0%<\/td><td>Personal allowance<\/td><\/tr><tr><td>\u00a312,571 to \u00a350,270<\/td><td>20%<\/td><td>Basic rate<\/td><\/tr><tr><td>\u00a350,271 to \u00a3125,140<\/td><td>40%<\/td><td>Higher rate<\/td><\/tr><tr><td>over \u00a3125,141<\/td><td>45%<\/td><td>Additional rate<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>When it comes to <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/national-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Insurance<\/a>, you&#8217;ll pay Class 4 National Insurance (6% of your earnings) when you earn more than \u00a312,570 (or 2% over \u00a350,271).<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-yellow m-align-left\">\n    <div class=\"b-block-body\">\n        <p class=\"p1\"><span class=\"s1\">\ud83d\udea8<\/span><b>From 6 April 2024 <\/b>(the 24\/25 tax year onwards),\u00a0<a href=\"https:\/\/www.gov.uk\/government\/publications\/changes-to-national-insurance-contributions-from-6-january-2024\/a-reduction-in-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions-and-the-removal-of-the-requirement-to-pay-class-2-nation\"><span class=\"s2\">Class 2 National Insurance is being scrapped<\/span><\/a>. If you\u2019re under the threshold and pay them voluntarily to qualify for benefits, you\u2019ll still be able to do so.<\/p>\n<p>At the same time, Class 4 is reducing from 9% to 6%.<\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">How do I pay my tax bill?<\/h2>\n\n\n\n<p>This is the part that most contractors find most complicated, but it doesn\u2019t need to be.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The tax year runs from the 6th April to 5th April&nbsp;<\/li>\n\n\n\n<li>You have to declare your income to HMRC by 5th October via a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-assessment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Self Assessment<\/a> online<\/li>\n\n\n\n<li>When you complete your Self Assessment, HMRC will send you a UTR (unique taxpayer reference) number<\/li>\n\n\n\n<li>The deadline to pay your tax bill is 31st January (after the tax year ends)<\/li>\n\n\n\n<li>You pay your tax bill via a tax return<\/li>\n\n\n\n<li>A tax return can be done\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.gov.uk\/pay-self-assessment-tax-bill\" target=\"_blank\" rel=\"noreferrer noopener\">Yourself via HMRC<\/a><\/li>\n\n\n\n<li>By an account<\/li>\n\n\n\n<li>With a smarter alternative (&#8230; like us)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A fitness instructor can work either as an employee or as an independent contractor i.e. someone that is self-employed. In fact, 62% of personal personal trainers and fitness instructors are self-employed. What\u2019s the difference between employed and self-employed? If you work as a fitness instructor, the main difference between being employed and self-employed is the [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[440,450],"tags":[414,348,137,411],"class_list":["post-6862","post","type-post","status-publish","format-standard","hentry","category-self-employed-tax-returns","category-sport-and-fitness","tag-employment-status","tag-income-tax","tag-national-insurance","tag-self-employed"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is a fitness instructor an independent contractor? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"A fitness instructor can work either as an employee or as an independent contractor i.e. someone that is self-employed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/is-a-fitness-instructor-an-independent-contractor\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is a fitness instructor an independent contractor? 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