Making Tax Digital for Yoga and Pilates Instructors —
Studio Splits, Packages & Online Income Explained
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.
Records for Classes, Studio Splits and Workshops
Yoga and Pilates income comes from studio classes, private sessions, workshops and sometimes retreats, often through different payers. Keeping them apart shows where the income really comes from.
- Record each studio’s payments, noting whether it pays a flat fee or a share of takings.
- Record private sessions and corporate classes separately from studio work.
- Record workshop and retreat deposits when they are received, with the date of the event.
- Keep teaching qualification, insurance and membership costs.
- Keep mat, prop and equipment receipts, and music licence fees if you pay them.
Common MTD Mistakes for Yoga and Pilates Instructors
- Counting studio payroll pay. Classes paid through a studio payslip are employment income.
- Recording retreat income at the retreat. A deposit is income when it arrives.
- Forgetting online classes. Subscriptions and recorded classes add to the total.
- Ignoring venue hire. Room hire is a cost, but it needs an invoice.
- Skipping travel. Mileage between studios needs a simple log.
A Sample Quarter: What the Update Looks Like
A sample quarter for an instructor who teaches at two studios and runs an online class.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Studio class payments | £5,200 |
| Private and corporate sessions | £2,600 |
| Workshops and online classes | £1,900 |
| Total income | £9,700 |
| Room hire | £1,100 |
| Insurance, qualifications and CPD | £480 |
| Props and equipment | £260 |
| Music licence and software | £210 |
| Total expenses | £2,050 |
| Profit for the quarter | £7,650 |
A workshop deposit taken now for a retreat later still counts in this quarter.
Worked Example
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
Best MTD Software for Yoga & Pilates Instructors
Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.
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.