Yoga Teacher Tax UK: 2026/27 Guide

Written by Nicola Bird, CIMA-qualified accountant. Last checked 10 November 2026.

Am I self-employed or employed at a studio?

Most yoga teachers are self-employed: you are paid per class, choose which classes you take, can send a substitute and use your own sequences. If a studio employs you, that income is taxed through PAYE and you only report your other teaching. Many teachers have both, which is fine. I will look at each arrangement and make sure nothing is taxed twice.

What counts as income

Fees from studios, gyms and leisure centres
Private one-to-one and corporate classes
Online classes, memberships and recorded courses
Workshops, teacher trainings you run and retreats

Add it all together. If your total self-employed income is over £1,000 in a tax year, before costs, you need to register for Self Assessment.

Expenses yoga teachers can usually claim

CPD and courses that update or refresh skills you already use in your teaching (training for brand new skills, or a first qualification to start teaching, is usually not allowed)
Mats, blocks, bolsters, straps, speakers and props for classes
Studio and room hire
Insurance, Yoga Alliance or BWY membership and music licences
Website, booking software, video platforms and advertising
Travel between studios and clients, at 45p a mile for the first 10,000 business miles
A share of home costs if you teach online from home

Everyday activewear is not allowable, because HMRC treats it as clothing you could wear anyway. Branded teaching tops with your logo can be.

Retreats and teaching abroad

If you are UK resident, you pay UK tax on your worldwide income, including retreats in Spain, Portugal or Bali. Your costs of running the retreat, such as venue, food you provide for guests, your travel and local helpers, can be set against that income. If you pay tax in the other country, you can often claim relief so you are not taxed twice. Some countries have their own rules for working there, so check before you go.

Do I need to charge VAT?

Only if your taxable turnover goes over £90,000 in any rolling 12 months, or you choose to register. Most yoga teachers are well under this.

Key UK figures for 2025/26 and 2026/27

These are the rates for England, Wales and Northern Ireland. Scotland has its own Income Tax bands, but National Insurance and the allowances are the same.

	2025/26	2026/27
Trading allowance (gross self-employed income)	£1,000	£1,000
Personal Allowance (tax-free income)	£12,570	£12,570
Income Tax basic rate (£12,571 to £50,270)	20%	20%
Income Tax higher rate (£50,271 to £125,140)	40%	40%
Class 4 National Insurance on profits £12,570 to £50,270	6%	6%
Class 4 National Insurance on profits over £50,270	2%	2%
Class 2 small profits threshold (Class 2 treated as paid above this)	£6,845	£7,105
Voluntary Class 2 if profits are below the threshold	£3.50 a week	£3.65 a week

Making Tax Digital for Income Tax: if your qualifying income (self-employment plus property, before expenses) was over £50,000 in 2024/25, you have had to use it since 6 April 2026. Over £30,000 in 2025/26 means you start on 6 April 2027, and over £20,000 in 2026/27 means you start on 6 April 2028. Sources: GOV.UK National Insurance rates, GOV.UK Income Tax rates, GOV.UK Making Tax Digital.

Questions

Do yoga teachers pay tax in the UK?

Yes. Teaching income is taxable. If your self-employed income is over the £1,000 trading allowance in a tax year, you register for Self Assessment and report it. Most people pay no Income Tax on the first £12,570.

Can I claim my yoga teacher training?

CPD and courses that update or refresh skills you already use in your teaching can usually be claimed. Your first teacher training, or training that gives you brand new skills, usually cannot. I can look at your course and tell you.

Can I claim yoga clothes?

Everyday activewear is not allowable because HMRC treats it as ordinary clothing. Branded tops with your logo, and props and mats for classes, can be claimed.

Do I pay UK tax on retreat income from abroad?

If you are UK resident, yes. You pay UK tax on worldwide income, but you can claim the costs of running the retreat, and relief for any tax paid in the other country.

How much tax and National Insurance will I pay?

For 2026/27, Income Tax is 20% and Class 4 National Insurance is 6% on profits between £12,570 and £50,270 in England, Wales and Northern Ireland. Class 2 is treated as paid if profits are over £7,105.

Does Making Tax Digital apply to yoga teachers?

Yes, once your self-employed and property income is over the threshold: £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028, based on earlier years' income.

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This page is general information, not tax advice. Get in touch about your own situation.

Yoga teacher tax in the UK: a plain-English guide