Yoga & Pilates Instructors · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for Yoga and Pilates Instructors —
Studio Splits, Packages & Online Income Explained

📅 28 July 2026 ⏱ 7 min read Editorial policy ↗

Studio Splits Work Like Chair Rent. Your Full Class Fee Counts

Most self-employed yoga and Pilates instructors teach through studios on a revenue-split basis — the studio takes a percentage (commonly 30–50%) of each class fee, and you keep the rest. As with any split-fee arrangement, your qualifying income for MTD is the full class fee before the studio's cut, not your net take-home percentage. The studio's share is then claimed back separately as a business expense.

Class Packages, Memberships, and Private Sessions

Many instructors also sell their own class packages or memberships directly, alongside studio teaching and private 1:1 sessions. Under the cash basis, which most sole traders use by default, a client buying a 10-class package upfront counts as income when you receive the payment, not spread across the weeks they attend classes. All three income types — studio splits, direct packages, and private sessions — combine into one qualifying income figure.

Worked Example

Willow. Teaches at two studios on a 60/40 split, plus runs private 1:1 Pilates sessions and a small online membership.

Studio class fees (gross, before studio's 40% split): £18,600
Private 1:1 sessions: £9,400
Online membership subscriptions: £4,200
Total qualifying income: £32,200 — above the £30,000 Phase 2 threshold. Willow joins MTD from April 2027. The studios' combined 40% share is claimed as a business expense against her profit, but her qualifying income is the full gross class fee before that split, not her actual take-home percentage.

What You Can Claim

  • Studio revenue share or room hire paid to venues
  • Teaching equipment — mats, props, reformers if you own your own
  • Insurance — public liability and professional indemnity cover
  • Teacher training and continuing education — further certifications, workshops
  • Music licensing for classes (PPL PRS)
  • Booking and membership software subscriptions (Momence, Mindbody, etc.)
  • Online content and streaming costs if you run virtual classes
Quick Check
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Best MTD Software for Yoga & Pilates Instructors

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Frequently Asked Questions

Is my qualifying income the full class fee, or my share after the studio's cut?

It's the full gross class fee before the studio deducts its percentage. The studio's share is then claimed back separately as a business expense, which reduces your taxable profit but not your gross qualifying income figure.

When does a 10-class package I sold upfront count as income?

Under the cash basis, which is the default for most sole traders, it counts as income on the date the client pays you, not spread across the weeks they use the classes.

Do I combine studio teaching with my private client income?

Yes, all self-employment income combines into one qualifying income figure, whether it comes from studio splits, private sessions, or your own packages and memberships.

I teach at three different studios. Do I add all three together?

Yes, regardless of how many studios or venues you teach at, all the income combines into a single qualifying income total for MTD purposes.

Can I claim the cost of a teacher training course?

Yes, further training and continuing education directly related to your teaching practice is generally an allowable business expense.

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