chapter 10
Let's Talk Business
There are a few factors to consider when you are starting out a purestretch Instructor including:
- Registering for HMRC tax
- Filling in tax returns
- Waivers and medical forms
- Insurance
- Marketing
Although this can all seem a bit daunting it’s all much easier than it seems and there is a helpful link that you will be directed to as soon as you have completed your Become a purestretch Instructor training.
Many purestretch Instructors take control of their businesses by becoming self-employed or a sole trader.
Note: You’re a sole trader when you’re self-employed and the sole owner of your business. If you’re self-employed but are in a business partnership or run a limited company, you’re not a sole trader.
Registering and then trading as a self-employed /sole trader it is quite straightforward.
Registering for HMRC tax
Individuals who want to be considered as self-employed should register themselves as such with HM Revenue and Customs (HMRC). This will allow the correct calculation and payment of income tax and national insurance. This can all be done online and the whole process is simple to follow.
Application takes approximately 10 days after which an activation code is generated that will then allow the individual to log onto their personal Government Gateway account and complete the process. This is also where most HMRC dealings are managed.
If the business turns over an excess of £82,000 it must also be registered for VAT and again this can all be done online.
Filling in tax returns
Once registered as self-employed, individuals are responsible for filling and submitting their own tax returns. This is normally done twice a year.
The tax return contains details of income and expenditure from which the HMRC will calculate the amount of tax owed. Tax returns can be submitted online via the Government Gateway or by post in paper form. To make this easy, get into the habit of recording the details of all financial transactions, issuing invoices and receipts, keeping receipts for purchases, and saving all bank statements. The best way to make this task as easy as possible is to put time aside each week or month for bookkeeping.
Some self-employed people engage the services of an accountant or tax adviser to help with the preparation of tax returns. While there is a cost for such a service, a good accountant or adviser may be able to identify tax-deductible expenses and their familiarity with tax can often save a lot of valuable time that could otherwise be spent working and earning more money. When choosing an accountant or tax adviser, make sure they are members of the appropriate professional bodies and hold the necessary qualifications.
Opening a business account
For tax purposes, personal and business finances should be kept separate. For this reason, self-employed / sole trader individuals are encouraged to open a bank account for all business-related transactions. It also makes it easier for you to keep an eye on all business transactions and it will become very clear to you if you need to cut down on Outgoings and increase on Incomings.
Many banks offer specific business accounts which provide useful services such as low-interest overdrafts, favourable interest rate loans and access to small business advisors, so worth some research.
Waivers and medical forms
While insurance does provide an essential legal safety net, Instructors must also take steps to minimise the risk of a claim being made against them. The client should always be made aware of the risks of exercise and given the opportunity to decide for themselves if they wish to participate; this is called “informed consent” and is essentially a waiver. This can be included in the Par- Q form.
The instructor should minimise medical risks by ensuring that all clients complete a screening form prior to exercise – a Pre-Activity Readiness Questionnaire or PAR-Q form. These should be updated on a regular basis. Templates are available once you have completed your course.
A verbal PAR-Q should also be completed before each training session to make sure nothing has changed since the PAR-Q was completed.
Insurance
Self-employed / Sole traders are generally responsible for their own insurance.
Insurance will limit personal financial liability in the case of accident or injury.
There are two main types of insurance that are pertinent to self-employed / sole trader Instructors:
Public Liability Insurance
Public liability insurance covers the trainer should someone be injured because of the business or if third-party property is damaged by the trainer or the client.
Professional indemnity Insurance
Also known as professional liability insurance, professional indemnity insurance covers against alleged professional negligence.
Trading without adequate insurance means that, if an incident should occur and legal action is taken against the self-employed individual, costs will be the responsibility of the person being sued. In some circumstances, for example, serious injury, this could run into millions of pounds.
Marketing
Purestretch has a very supportive Community who are only too happy to help with any advice tips and tricks with regards to Marketing. The purestretch admin team are always to hand to help with ideas and designs to help promote your class, they have created a Business Support tab within the purestretchpro membership, and this includes many resources that you will find helpful to help you promote your classes.