Making Tax Digital (MTD) for Personal Trainers
Making Tax Digital (MTD) is a major change in the way HMRC expects self-employed individuals and small businesses to manage their tax affairs. For personal trainers, fitness instructors, and freelance coaches, MTD changes how income and expenses are recorded, reported, and submitted to HMRC. Instead of relying on traditional paper records and annual Self Assessment returns, trainers now need to maintain digital records and submit quarterly updates using MTD-compliant software.
While this may feel daunting for personal trainers who spend most of their time coaching clients rather than behind a desk, MTD can actually simplify financial management. Digital record-keeping allows trainers to track income from one-to-one sessions, group classes, online coaching, and other fitness services, while also monitoring expenses such as gym hire, equipment, travel, and insurance. With the right systems in place, MTD can reduce year-end stress, provide clearer insight into profits and cash flow, and ensure compliance with HMRC requirements.
Who Making Tax Digital Applies to (and Who Is Not in Scope Yet)
Making Tax Digital does not apply to all personal trainers at once. Whether a trainer is required to comply depends primarily on business structure and income level, rather than the type of fitness services offered.
MTD for Income Tax applies to self-employed personal trainers whose gross qualifying income exceeds HMRC thresholds. From 6 April 2026, trainers earning more than £50,000 per year will need to comply. This threshold will reduce to £30,000 from April 2027, then to £20,000 from April 2028, bringing more trainers, including part-time instructors and small freelance businesses, into scope over time.
Gross income is used to determine eligibility, not profit. This is important for personal trainers, as expenses such as gym hire, equipment, travel, insurance, and certification costs can significantly reduce net earnings. Yet, gross turnover may still trigger MTD obligations.
VAT-registered personal trainers are already required to comply with MTD for VAT, regardless of income. This means VAT records must be kept digitally, and returns submitted through MTD-compliant software. Trainers below the income threshold or operating through a limited company (which is taxed under corporation tax) are not currently in scope for MTD for income tax, although voluntary registration is possible.
Understanding whether you are currently affected or likely to be affected in the coming years allows for proper planning and early adoption of digital bookkeeping practices.
When Personal Trainers Need to Start Complying – Key MTD Dates
Making Tax Digital for Income Tax is being introduced in stages, with personal trainers gradually brought into the system based on their income. Understanding these dates is crucial for proper planning and avoiding last-minute compliance issues.
From 6 April 2026, self-employed personal trainers with gross qualifying income over £50,000 will need to comply with MTD for Income Tax. This requires keeping digital records and submitting quarterly updates to HMRC using approved software rather than relying solely on an annual Self Assessment return.
The rules expand from 6 April 2027, when the income threshold reduces to £30,000, bringing in more trainers and small freelance fitness businesses. By 6 April 2028, the threshold drops further to £20,000, meaning that most trainers earning above part-time or supplementary income will need to comply with MTD.
Personal trainers who are VAT-registered are already within scope for MTD for VAT, meaning digital VAT records and submissions are mandatory regardless of Income Tax thresholds. Trainers whose income fluctuates should monitor turnover closely, as a high-earning period could bring MTD obligations forward sooner than expected. Early preparation helps ensure smooth compliance and avoids unnecessary penalties.
How Making Tax Digital Works in Practice for Personal Trainers
Keeping Digital Records
Under MTD, personal trainers must keep digital records of all income and expenses. This includes fees from one-to-one sessions, group classes, online coaching, workshops, and other fitness-related services, as well as expenses such as gym hire, equipment purchases, travel, insurance, and certification costs. Handwritten notes or standalone spreadsheets are no longer sufficient. HMRC requires records to be maintained in MTD-compliant software. Using digital tools ensures records are accurate, up-to-date, and ready for submission.
Submitting Quarterly Updates
Instead of submitting a single annual Self Assessment return, personal trainers must provide quarterly updates summarizing income and expenses to HMRC. This allows HMRC to track your financial activity throughout the year and helps avoid year-end surprises. The standard reporting periods and deadlines are
- Quarter 1: 6 April – 5 July → deadline 7 August
- Quarter 2: 6 July – 5 October → deadline 7 November
- Quarter 3: 6 October – 5 January → deadline 7 February
- Quarter 4: 6 January – 5 April → deadline 7 May
Submitting updates on time reduces the risk of penalties and allows trainers to monitor cash flow and taxable profit throughout the year.
End-of-Year Declaration
At the end of the tax year, personal trainers submit a final declaration summarizing all income, expenses, and deductions. Since most of the data has already been reported in quarterly updates, this final submission is simpler, faster, and less error-prone. It ensures that all allowable expenses and adjustments are properly recorded.
Practical Benefits for Personal Trainers
Although MTD may seem like extra work at first, it offers clear advantages. Digital record-keeping helps track profits, manage cash flow, and prepare for tax payments. It also reduces year-end filing stress, provides more accurate insights into business performance, and ensures compliance with HMRC requirements.
Common Mistakes Personal Trainers Make Under MTD and How to Avoid Them
Not Using MTD-Compliant Software
A common mistake is continuing to rely on paper records or basic spreadsheets that aren’t connected to HMRC-approved software. Under MTD, all income and expenses must be kept digitally. Using MTD-compatible software like QuickBooks, Xero, or FreeAgent ensures your records are accurate, complete, and ready for quarterly submission.
Delaying Record-Keeping
Some personal trainers wait until the end of the week, month, or quarter to log income and expenses. This increases the risk of missing or incorrect entries, which can lead to errors in quarterly updates. Updating records regularly, ideally after each session or weekly, helps maintain accuracy and reduces year-end stress.
Mixing Personal and Business Expenses
Many trainers use the same bank account for personal and business spending, or accidentally record personal expenses as business costs. This can cause errors and potential HMRC queries. Keeping a dedicated business account and recording only legitimate business expenses in your digital records is essential.
Missing Quarterly Deadlines
Quarterly submissions are mandatory, and missing deadlines may result in penalties. The reporting periods and deadlines are:
- Q1: 6 April – 5 July → 7 August
- Q2: 6 July – 5 October → 7 November
- Q3: 6 October – 5 January → 7 February
- Q4: 6 January – 5 April → 7 May
Using calendar reminders or software notifications helps avoid late submissions.
Incorrectly Categorising Income or Expenses
Trainers may misclassify income (e.g., workshops, online classes, or merchandise) or expenses (e.g., equipment vs. personal purchases). Incorrect categorization can distort your tax calculations. Make sure your accounting software allows you to categorize transactions accurately and review entries regularly.
Assuming MTD Only Applies to Large Trainers
Some personal trainers assume MTD is only for full-time or high-earning professionals. With thresholds dropping to £50,000 in 2026, £30,000 in 2027, and £20,000 in 2028, even part-time trainers or those running small freelance businesses may soon fall within scope. Planning avoids last-minute compliance issues.
Practical Tips for Personal Trainers to Stay Compliant with MTD
Choose the Right Accounting Software
Use MTD-compliant software that suits your personal training business. Ensure the software can track multiple income streams (one-to-one sessions, group classes, online coaching) and expenses (gym hire, equipment, travel, insurance).
Separate Personal and Business Finances
Maintain a dedicated business bank account to ensure personal and business transactions are not mixed. Only record legitimate business expenses in your digital records to prevent errors and avoid HMRC queries.
Update Records Regularly
Log income and expenses weekly or after each session to keep your records accurate and up to date. Regular updates make quarterly submissions smoother and reduce year-end stress.
- Set Reminders for Quarterly Deadlines
Keep track of quarterly submission deadlines:
- Q1: 6 April – 5 July → 7 August
- Q2: 6 July – 5 October → 7 November
- Q3: 6 October – 5 January → 7 February
- Q4: 6 January – 5 April → 7 May
Use calendar alerts or software notifications to avoid late submissions.
Categorize Income and Expenses Carefully
Ensure each transaction is correctly classified. Income streams, such as workshops, merchandise, or online sessions, should be clearly distinguished, and expenses, such as equipment and travel, should be allocated appropriately. This helps maintain accurate quarterly updates and year-end calculations.
Reconcile Your Bank Account Regularly
Match bank statements with your digital records to ensure nothing is missing or duplicated. Regular reconciliation prevents errors and makes both quarterly updates and year-end submissions easier.
Seek Professional Advice if Needed
If your personal training business has complex arrangements, such as multiple income streams, VAT registration, or home-based expenses, consulting an accountant familiar with MTD can prevent mistakes and save time.
Conclusion – Staying Ahead with MTD for Personal Trainers
Making Tax Digital may feel like a significant change for personal trainers, but with careful planning and the right tools, it is entirely manageable. By keeping digital records of all income and expenses, including one-to-one sessions, group classes, online coaching, gym hire, equipment, travel, and insurance, trainers can ensure their quarterly updates to HMRC are accurate and complete. Regularly updating records, using MTD-compliant software, and keeping personal and business finances separate not only ensures compliance but also provides a clearer picture of cash flow and profitability throughout the year.
It is also important to plan, as the income thresholds will reduce to £50,000 in 2026, £30,000 in 2027, and £20,000 in 2028, meaning more part-time and small freelance trainers will fall within scope. By following practical tips, maintaining up-to-date digital records, categorising income and expenses correctly, reconciling accounts regularly, and seeking professional advice when necessary, personal trainers can stay compliant with HMRC, avoid penalties, and run their business more efficiently. With the right systems and habits in place, Making Tax Digital becomes less of a burden and more of a tool to streamline financial management and support business growth.
Sterling & Wells
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