June 27, 2024
As an online coach in the UK, it’s important to understand your tax obligations to remain compliant with HM Revenue and Customs (HMRC) regulations. If you earn money from selling online courses, this income is considered self-employment income. You will need to register with HMRC and submit a Self Assessment tax return annually. Your earnings will be subject to income tax, and the amount you pay depends on your total income, with the first £12,570 being tax-free.In addition to income tax, you will also need to pay National Insurance Contributions (NICs). If your annual turnover from selling online courses exceeds £85,000, you are required to register for VAT and charge it on your sales. Allowable business expenses, such as marketing costs, software subscriptions, and home office expenses, can be deducted from your taxable income. Accurate record-keeping and seeking professional advice are essential steps to ensure compliance and effective financial management.
