As a triathlon coach do you need to complete a self-assessment tax return? And if so, when do you need to complete one, and how?
Triathlon is an all-encompassing lifestyle – as triathletes, we breathe swimming, cycling and running. For a select few that passion for the sport goes beyond their own athletic aspirations and into supporting other athletes by passing on knowledge, experience, and advice as a coach. Whether as a local club coach or someone who’s turning their love of triathlon coaching into a career, if you’re getting paid for your efforts, you may need to fill in a self-assessment tax return.
We discuss how to work out if you need to fill in a self-assessment tax return, dip into what this means if you do, and highlight some key dates so you don’t fall foul of HMRC deadlines – letting you focus on coaching your athletes to success rather than poring over spreadsheets!
Remember you may be required to fill in a self-assessment for other reasons than your triathlon coaching – read our Self-assessment Tax Return – Who Needs To Submit One? guide for more information.
Sharing your obsession at Lava Sky Accounting, we know how triathlon takes over, so if you want to avoid the time-crunch, get in touch to discuss your individual needs.
Triathlon coaching – do I need to fill in a self-assessment tax return?
If you are paid for your triathlon coaching, then you may need to fill in a self-assessment tax return to declare this income and calculate how much tax you owe.
Triathlon Coaches Employed By A Company
If you are employed by a company as a triathlon coach – i.e. you are on a company’s payroll and are paid via PAYE – then your tax is already taken into account, so you can breathe a sigh of relief and get back to writing training plans.
Triathlon Coaches Coaching Casually Alongside Another Job
If you coach casually for your local tri club but do receive some money from your triathlon coaching, the key figure is your trading income – any income you receive in return for your coaching services.
If your trading income is £1,000 or less in a single tax year (6 April to 5 April) then this income is completely tax-free – go ahead and book yourself into another big triathlon event! What’s more, you do not need to inform HMRC or fill in a self-assessment tax return. This is due to the £1,000 trading allowance that HMRC introduced in 2017.
This trading allowance also applies to those who are employed in another job – so if you’re a regular member of the workforce paid via PAYE by day and a triathlon coach by night, you’re covered up to the £1,000 limit.
If you go over the £1,000 trading allowance, you’ll need to register as self-employed with HMRC and fill in an annual tax return.
It’s worth noting that if your other job is a self-employed business – for example working as a sole-trader endless pool installer – the £1,000 limit only applies once per person. So, once the total income for both your business and triathlon coaching reaches the £1,000 threshold, you’ll need to complete a self-assessment.
Running a triathlon coaching business
If you have a self-employed triathlon coaching business, you’re covered up to the same £1,000 trading allowance outlined above. However, once you tip over that within a single tax year (6 April to 5 April), you’ll need to register with HMRC as self-employed and fill in an annual tax return.
If you have set up your triathlon coaching business as a limited company rather than as a sole trader then you may still need to fill in a self-assessment tax return – Self-assessment Tax Return – Who Needs To Submit One?
Self-assessment tax return for triathlon coaches
If you are required to fill in the self-assessment tax return for your triathlon coaching then you will need to fill in the self-employment section. Here you will need to declare any income you have received in return for your triathlon coaching services.
You should also fill in any allowable business expenses. This is key as this will reduce your profit and in turn your tax bill. Allowable business expenses are expenses that have been incurred wholly and necessarily for the business, for example advertising your triathlon coaching business, traveling to events to coach your athletes, or buying items like a stopwatch.
As a sole trader, for expenses that have dual personal and private use, you may be able to claim the business portion. To do this, you’ll need to take a fair and reasonable approach, for example claiming for any business calls made from your personal mobile.
If your allowable business expenses come to less than £1,000, then rather than deducting your expenses from your profit you can take advantage of the £1,000 trading allowance and deduct this instead. This allows you to deduct up to the limit of £1,000 from your income – in turn lowering your tax bill – however, you cannot deduct more than your income, resulting in a loss.
Head to our article to find more examples of how the £1,000 trading allowance can be used.
Self-assessment tax return key dates
As discussed above, if you have established a sole-trader triathlon coaching business, you need to register as self-employed with HMRC by 5 October following the tax year you became eligible.
For example, if your trading income from triathlon coaching exceeded the £1,000 threshold in January 2023 this would be during the tax year ending 5 April 2024. You would be therefore required to register with HMRC by 5 October 2024.
The deadline for your online self-assessment tax return is 31 January of the following tax year. Following on from the example above, the income for the tax year ending 5 April 2024 can be filed from 6 April 2024 with a deadline of 31 January 2025. Of course, it’s a good idea to file in good time just in case there are any issues that need tackling. Getting everything squared away by Kona’s usual October date is a good goal to aim for!
So, put your own deadline in your calendar and work towards it like you would any other coaching goal – making sure you’re spot on with your planning and execution.
If numbers aren’t your thing and you’d rather concentrate on the coaching, Lava Sky Accounting can take the stress away by processing and submitting your self-assessment tax return for you. Not only can you be assured it will be completed by an expert, but it’ll also be handled by a fellow triathlete and former triathlon coach who understands exactly what you’re going through!