Claiming expenses reduces your tax bill, but you can’t claim everything and I am sure you probably know you can’t claim personal expenses. So what about coaching? Well, it is a bit of a grey area!
When it comes to life coaching, then in most cases it is unlikely that you can claim it against your taxes. That’s because chances are it isn’t directly related to your business. That being said if your life coach does advise on aspects of your business, then you may be able to claim a portion of their fees against your taxes.
Business coaching on the other hand, might be a tax-deductible expense because you are working closely with someone who is helping your handle things in your business like business planning, finances and business vision.
When it comes to claiming expenses, always use your judgement when it comes to deciding what you deduct against your taxes. Incorrect claims can result in penalties. And, as always, if you aren’t sure, seeks the advice of a professional.
Looking for more advice on what you can and can’t claim against your taxes? Read this guide on self-employed expenses for more help and a free cheat sheet download to keep for tax-time.