Books is a simple set of accounts for a self-employed coach. Paid invoices flow in on their own, you add what you spend, and it tells you your profit and roughly what to set aside for tax.
Books needs a Performance plan or above. Open it from Money with Open books, or add a cost straight from Money with Add expense.
First, check your settings
Open the Settings tab before adding anything:
- Country: sets your tax year and decides whether a tax estimate is shown. Tax estimates are available for the UK only.
- Tax year starts: the UK tax year starts on April 6. Most other countries, including the US, use January 1, and changing country sets it for you.
- Currency.
- I am VAT registered: turns the VAT threshold warning off. Invoices do not add VAT automatically.
- Mileage rates: per mile for the first 10,000 miles and after, in pence or cents. They start at the UK rates approved by HMRC, 45p and 25p, so if you're based outside the UK, replace them with your own rates.
Income
Every invoice paid through Coaching on the web, by card or marked paid, appears under Income automatically, net of refunds, on the date it was paid.
For anything else, use Add other income: a gym paying you for classes, a referral fee. Say Who paid you so your accountant can follow it.
Expenses
Choose Add expense and enter the date, description, amount, category and supplier. Each category explains what belongs in it. Common ones for a coach:
- Equipment: kettlebells, bands, mats. Large items may need claiming over several years.
- Gym or studio hire.
- Insurance: general liability and professional liability.
- Courses and qualifications: continuing education (CPD), first aid renewal.
- Professional memberships: CIMSPA, REPs and similar.
- Software and subscriptions, including Workout Titan.
- Bank and payment fees, including Stripe's card fees.
- Branded kit and uniform: clothing with your logo. Everyday gym wear isn't deductible.
Client entertaining is recorded but marked not deductible: coffee with a client isn't tax deductible.
Attach a Receipt as a photo or PDF up to 10 MB. In the UK, keep receipts for six years after the tax year ends.
Repeats is a note to yourself. Repeating expenses are not added automatically.
Mileage
Use your own car for work? Record each journey with Add mileage instead of claiming fuel. Enter the miles, check Round trip to double them, and add where from, where to and why.
Business miles only: driving to a client, to a gym you hire or to a course. Your commute to a regular place of work doesn't count.
The overview
- Income: everything received this tax year.
- Expenses: what you've recorded plus your mileage allowance.
- Profit: income less allowable expenses and mileage. What you're taxed on.
- Set aside: an estimate of the tax on that profit.
A month-by-month chart shows income against expenses, with a breakdown of expenses by category.
For UK coaches
This section applies only to coaches based in the UK. With the country set to the United Kingdom, Books adds:
- A tax estimate: income tax and Class 4 National Insurance at England, Wales and Northern Ireland rates. It assumes this is your only income and no other reliefs, and Scottish rates differ. It's an estimate, not advice, so check with an accountant before relying on it.
- The VAT threshold: how close your turnover is to the point where you must register. It warns you as you get near.
- Making Tax Digital quarters: whether your income is above the threshold for quarterly updates to HMRC, and where you are in the year.
Books doesn't file anything with HMRC. It gets your figures ready: see Exporting your books for Self Assessment.