Becoming Self Employed
As a PT you will probably be classed as self employed unless you work for a big chain or hotels where you may be salaried. There are three choices when you are going self employed. I shall try to explain each one to you so you can decide which suits your needs best.These will be the same for any business or for Entrepreneurs
Firstly you have Sole Trader this is generally thought to be the easiest way to set up your business therefore it tends to be the preferred choice of most PT's
You and you alone are responsible legally for your business
You will pay income tax through self-assessment
You will be responsible for all profit and loss
You will bill clients for all personal fitness services
You will pay National insurance class 2 and class 4
Next up is a Limited Company this is quite a complicated set up and you may need accounting assistance as well as legal advice.
With this option you are classed as an employee of the company
Your company name must be registered with companies house
Your tax is taken through the company on a PAYE scheme
Generally this is not a popular choice.
Finally you have a Partnership this method is sometimes used by PT's and Holistic health practitioners or physiotherapists.
This as the name suggests involves two or more people who are all responsible for the business.
Again you will pay tax through self-assessment
You are responsible individually to pay separately your national insurance classes 2 and 4
You and your partners are responsible for all profit and loss of the business
Each person will have a Deed of Partnership which sets out each person's share of the business .
It is vital that you make the right choice for your business so it may be prudent to seek advice.