The 2025 tax year brings several important changes that will affect fitness professionals across the UK. Whether you're a personal trainer, yoga instructor, or gym owner, staying informed about these updates is crucial for your financial planning and compliance.
KEY CHANGES TO BE AWARE OF
Personal Allowance and Tax Bands
The personal allowance remains frozen at £12,570 for the 2025/26 tax year. This means the first £12,570 of your income is tax free. However, with inflation pushing many fitness professionals' earnings upward, more of you may find yourselves moving into higher tax brackets.
The basic rate tax band covers income from £12,571 to £50,270, taxed at 20%. The higher rate applies to income between £50,271 and £125,140 at 40%. If your fitness business is thriving and you're earning over £125,140, you'll pay the additional rate of 45%.
National Insurance Contributions
For self employed fitness professionals, Class 2 National Insurance contributions remain at £3.45 per week if your profits are £12,570 or more. Class 4 NICs are charged at 9% on profits between £12,570 and £50,270, and 2% on profits above that threshold.
Important: These frozen thresholds mean that as your fitness business grows, you may be paying more tax in real terms. It's essential to plan ahead and consider tax efficient strategies.
WHAT THIS MEANS FOR YOUR FITNESS BUSINESS
Impact on Personal Trainers
If you're a personal trainer working with multiple clients, your income can fluctuate significantly throughout the year. These tax changes mean you need to be particularly careful about:
- Keeping accurate records of all income and expenses
- Making payments on account if required
- Planning for tax bills during quieter periods
- Maximising legitimate business expense deductions
Studio and Gym Owners
For those running fitness studios or gyms, the changes create additional considerations around employee payroll, business structure optimisation, and VAT thresholds. Many studio owners are reassessing whether their current business structure remains tax efficient.
TAKING ACTION
Review Your Business Structure
With these changes, it may be worth reviewing whether operating as a sole trader or limited company is most beneficial for your circumstances. Each structure has different tax implications, and what worked last year might not be optimal for 2025.
Maximise Your Allowable Expenses
Make sure you're claiming all legitimate business expenses. For fitness professionals, this commonly includes:
- Professional insurance and certifications
- Equipment and training gear
- Venue hire and studio rental
- Marketing and website costs
- Professional development and courses
- Mileage for business travel
- Home office expenses if applicable
Plan Ahead
Don't wait until January to think about your tax position. Regular reviews throughout the year allow you to make informed decisions, adjust your strategy, and avoid unpleasant surprises when your tax bill arrives.
Need help navigating these changes? Our team specialises in supporting fitness professionals with tax planning and compliance. We understand your industry and can help you make the most of available reliefs and allowances.
STAYING COMPLIANT
Remember that self assessment tax returns for the 2024/25 tax year are due by 31 January 2026. Missing this deadline results in automatic penalties, starting at £100 and increasing the longer you delay.
The key to managing these tax changes successfully is staying organised throughout the year. Keep digital copies of receipts, maintain accurate records of income, and consider using accounting software designed for small businesses.
These changes don't need to be overwhelming. With proper planning and expert support, you can navigate the 2025 tax landscape confidently while focusing on what you do best – helping your clients achieve their fitness goals.
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