This guide is for sole traders and people considering self-employment. It is general information, not personal tax advice. Check the linked GOV.UK guidance and speak to an accountant when your circumstances are unusual.
Start with the shape of your real working week
A teacher's income rarely arrives in one neat stream. A studio may pay a flat rate, another may pay by attendance, private clients may pay directly, and a workshop or retreat has its own costs and deposits. Keep each source identifiable, but bring them into one view. That lets you answer two different questions: what did this class earn, and what did the whole business earn?
Do not rely on a studio's booking system as your business record. It shows the studio's version of the class. Your own record should include the date taught, agreed rate, cover arrangement, amount due, invoice and payment date.
Know when you need to register
The trading allowance can cover up to £1,000 of gross trading income in a tax year. If your gross trading income goes above that, you will usually need to register for Self Assessment as a sole trader. GOV.UK explains the threshold, exceptions and registration process in its sole-trader registration guidance.
The UK tax year runs from 6 April to 5 April. Registration and filing deadlines depend on when you began and how you file, so check the current Self Assessment deadlines rather than copying last year's dates into your diary.
Build an invoice from the class record
A clear studio invoice normally identifies you and the customer, carries a unique invoice number, gives the invoice date, describes what was supplied and shows the amount due and payment terms. GOV.UK lists the required information for sole-trader invoices.
A useful studio invoice trail
Each class date and class name.
The agreed flat, hourly or attendance-based rate.
Any cover taught by you or arranged for your class.
The invoice number, issue date and payment deadline.
The date and method of payment when it arrives.
When the diary and invoice share the same source record, month-end becomes a check rather than a reconstruction. You can still amend a genuine exception without retyping every class.
Keep direct student money separate from studio income
Money from your own classes, passes, one-to-ones, courses and retreats is still business income, but it behaves differently from an invoice to a studio. Record the gross amount paid, refunds, card fees and the class or service it belongs to. A payment processor's bank deposit can combine several transactions after fees, so the deposit alone is not enough detail.
If you also have PAYE employment, keep that income distinct from self-employment. The two belong in different parts of your tax records even when both come from teaching.
Record expenses when they happen
Allowable expenses reduce taxable profit when they are incurred wholly and exclusively for the business. GOV.UK's self-employed expenses guidance covers categories including travel, premises, insurance, advertising, office costs and relevant training.
For a teacher, possible business costs might include venue hire, professional insurance, booking software, props and consumables, relevant training, advertising and eligible travel. Whether a particular cost is allowable depends on its purpose and any private use. Keep the receipt and a short note explaining the business reason; do not wait until January to remember it.
Treat mileage and journeys carefully
Working across venues makes travel significant, but not every journey is automatically business travel. HMRC distinguishes business travel from ordinary commuting and offers different ways to calculate vehicle costs. Use the current travel and mileage guidance, keep a journey log, and take advice if you have a regular base or mixed-purpose journeys.
Make the tax-year pack a by-product, not a project
After each class: confirm what you taught, the rate and any cover.
When paid: match the payment to the studio invoice or student booking.
When spending: record the expense, category and receipt.
Monthly: review unpaid invoices and reconcile card deposits.
At year end: review the totals and supporting records with the appropriate Self Assessment guidance.
HMRC explains what records self-employed people must keep and how long they should be retained in its business records guidance. Making Tax Digital for Income Tax is being introduced in phases, so check whether and when it applies to you.
Where Sangha fits
Sangha starts with the teacher's diary. The classes taught become studio invoice lines; direct bookings become income records; card fees and expenses sit beside them; and the UK tax-year view shows how the figures were formed. It is designed for the common reality of moving between studios while also running work of your own.
Next, read why teacher software needs a different centre of gravity from studio software.