If you are going to be working as a coach, its is important for you to know whether you are going to be employed or self-employed - not least to ensure you are paying the correct tax and National Insurance - getting this wrong could prove costly!
Unfortunately, this isn't necessarily a simple issue, as it depends on the circumstances of the work being undertaken. It is possible, a person can be both employed and self-employed at the same time. A coach may be employed while working for one organisation, but be self-employed for similar work but under different working arrangements at another.
There is no definition of what makes a coach self-employed as opposed to employed. HMRC provide a set of guidelines and the onus is on the organisation to ensure they meet the requirements in their relationship with the coach.
A coach would generally be regarded as self-employed if they are:
- in control, of the work
- taking financial risk
Defining what these mean for a sports coach is open to interpretation, and coaches and organisations are advised to get further specialist advice.
More information can be found on the HMRC factsheet produced by sports coach UK in conjunction with the HMRC, and also on the HM Customs & Revenue website.
If you are running or thinking of starting a coaching business additional help is available from the following organisations:
Business Link - government funded support and advice for businesses.
GB Sport - a specialist company that provide 'Business Essentials' and 'Marketing Essential' workshops (4hrs) specifically for coaches and sports organisations to help them comply with tax requirement.