Self Employed in The Fitness industry.

Discussion in 'Employment & HR' started by MGN67, Mar 2, 2018.

  1. MGN67

    MGN67 UKBF Newcomer Free Member

    1 0
    Hi everyone, just looking for a little bit of advice regarding working as a self employed personal trainer for a company that retains quite a lot of control over our business.

    First off, we don’t actually have any control over our pricing structure as that is all decided by the company we work under. This hasn’t been a problem personally, but we have been told recently prices will be going up, which could likely effect business for a few others who have already been struggling.
    Im curious as to whether there is anything questionable in being “self employed” but not being able to control our own pricing structures.

    Next is the pricing set up and how VAT is taken.

    If a potential client (limited only to members of the club) wants to train with me, they pay the company an overall price in advance for a set amount of sessions. This is fairly standard throughout the industry in companies where trainers are actually employed.

    In this instance the club deducts VAT from the transaction BEFORE we are given our % of the price from each session. (The % is worked out from number of sessions delivered each month)

    For example: If the company charges £700 for 10 sessions, we would invoice for

    £700/1.2 = £583.33
    583.33/10 = £58.33

    This leaves our cut of 60% of £58.33 = £34.99

    I know the fitness industry treads a fine line at the best of times, but I just wanted to get some other opinions on whether it was totally legit for a health club to retain control of pricing and take the VAT out before we even get to invoice for our part as self employed contractors.

    We are also not allowed to work in the same borough or bring external members in to the club for training. We are only able to make our business from the members we have access too in the club.

    Thanks for your time to whoever reads this and has any thoughts.
    Posted: Mar 2, 2018 By: MGN67 Member since: Mar 2, 2018
  2. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,409 2,670
    It is industry standard, apparently. And it is almost certainly NOT self employment. Can you explain how your set up differs in any way form the set up for an employed trainer? You don't set the prices. You don't have the freedom to work elsewhere.

    VAT. You cannot charge VAT unless you are VAT registered. If the company is 'invoicing' the client and the company is VAT registered, they must charge VAT. The VAT they have charged has to be paid to HMRC. If you are invoicing the client and you are not VAT registered, there is no VAT payable. However if the gym then invoices you for use of the facilities, they would have to charge you VAT.
    Posted: Mar 2, 2018 By: Newchodge Member since: Nov 8, 2012
  3. The Byre

    The Byre UKBF Ace Free Member

    7,670 2,984

    That whole scene and a whole host of other similar activities, such as great chunks of the building trade, taxi services and - well, I'm sure we can all think of many more - seem to be acting as if current employment law just does not apply to them.

    As you can see on this check-list here -
    - you should have the rights, duties and benefits of an employee.
    Posted: Mar 2, 2018 By: The Byre Member since: Aug 13, 2013
  4. FutureM

    FutureM UKBF Regular Free Member

    381 25
    I'd say in regards to being self employed and not controlling your pricing, technically it sounds like you do. What they charge to their customer is whatever they want. Separately you charge them a fee, which happens to be a percentage of what they charge. Which i guess is non negotiable, but as you are self employed you can choose to provide your services elsewhere. Not sure how legal the part about if you provide services to them you cant provide services elsewhere is. I guess they are trying to prevent you from telling customers to come to you direct..just a harsh way of doing it.
    Posted: Mar 2, 2018 By: FutureM Member since: Oct 25, 2007