Most personal trainers are entrepreneurs. As a self-employed person, in addition to the technical work, in the case of a personal trainer, the training and advising of customers, the entrepreneurial work, the management of income and expenses, is also decisive. Only those who can pay their bills permanently can look after their customers and support them in achieving their goals.
As complex as the entrepreneurial or business part of the work can be, the basics are just as important. Because only those who master the entrepreneurial basics can fully concentrate on their customers and their progress. In the end, the entrepreneurial goal of every personal trainer is to manage income and expenses efficiently and to optimize profit. After all, no one is interested in a lot of work for little pay. And entrepreneurial hurdles cost energy and time that could otherwise flow into working with customers.
The first business tip I can give to most personal trainers is how to best manage their expenses. And one of the biggest expenses of any coach, especially in the early years of their job, is education and training. And the first step in order to optimally use the expenses for training and further education, especially for the seminars, is to claim them as costs for tax purposes.
So the first business tip for personal trainers is:
Book each seminar with an invoice that includes your full address and claim it for tax purposes at the end of the year.
"How much will I save with this?"
…is the next logical question. The calculation can look like this:
Investment for the YPSI Module 1 seminar: 499 euros net plus 19% VAT corresponds to 593.81 euros gross.
Sales tax equalization: The VAT of 94.81 euros is a transitory item for personal trainers subject to sales tax and is reimbursed directly by the tax office.
Offsetting the costs for the seminar: The costs for the seminar in the amount of 499 euros net reduce the profit and thus also the income tax. Most personal trainers are at an income tax rate of 42%. The tax rate is calculated as follows:
Income tax 42% plus 5.5% solidarity surcharge = 44.31% plus, if applicable, church tax from 8 or 9% to 42% and thus a total of approx. 48%. The income tax saving is therefore 239.52 euros (48% of 499 euros).
Allowance for travel expenses for the seminar: Let's assume that traveling by train or plane costs 50 euros. This means that the income tax saving is 28.15 euros (19% VAT and 48% of 50 euros).
Allowance for accommodation costs for the seminar: Let's assume two overnight stays in Stuttgart cost 160 euros. This means that the income tax saving is 82.25 euros (7% VAT and 48% of 160 euros).
Allowance for meal costs for the seminar: Let's assume two lunches and two dinners in Stuttgart cost 70 euros. This means that the income tax saving is 39.42 euros (19% VAT and 48% of 70 euros).
The total tax savings for this example calculation* for this one seminar is 484.15 euros.
And this is the saving for a single seminar. If you attend several seminars per year, this amount will of course increase significantly and can quickly amount to several thousand euros if a trainer invests a lot in his training.
However, this tax saving is only possible if the complete address is listed on every seminar invoice and then the investment for the seminar as well as travel, accommodation and catering costs are claimed for tax purposes.
Good luck with this first business tip for personal trainers!
*This is a sample calculation and may vary slightly up and down from personal trainer to personal trainer based on various factors. I recommend every personal trainer to consult a tax advisor to determine the exact savings.
Since the business part of the personal trainer job is so crucial, we have increased this part of the YPSI Module 6 seminar from half a day to a full day from autumn 2018. For even more tips on optimizing your business as a personal trainer. For more information on the YPSI Sports Specific Training & Business Seminars click here.