Coaching can be an essential part of being a business owner, but does that make it a business expense you can put on your tax return to reduce your tax bill?
Well, it depends! And the HMRC rules are quite strict. In this guide, you’ll find out when coaching counts as a business expense.
Table of Contents
1. Can I Claim Life Coaching as a Business Expense?
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 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.
2. Can I Claim Business Coaching as an Expense?
Business coaching, on the other hand, might be an allowable business expense. This is because you are working closely with someone who is helping you handle things in your business. For example, business planning, finances and business vision.
3. How to Claim for Coaching On Your Tax Return
You’ll need to claim the cost of allowable coaching in the self-employment section of your tax return. If your business turnover is less than £85,000 for 2024/2025, you’ll have the option to fill in the simplified version of this part of the tax return. Therefore, you only need to enter your total expenses. You’ll need to include your claim for coaching in the figure you enter alongside your other allowable business expenses.
If your business turnover is more than £85,000 you’ll need to enter a breakdown of your expenses in the boxes set out by HMRC and you’ll need to include your business clothing. This should be done either ‘accountancy, legal and other professional fees’ or ‘other allowable business expenses’.
Whatever your business turnover, you should keep a note of what you are claiming for and how you worked it out as part of your business records. This is in case of an HMRC investigation and they ask for evidence of what you are claiming for to check you’ve paid the right amount of self-employed tax.
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.
Want to Read More About Claiming Business Expenses?
If you’ve enjoyed this post you may like to read more about claiming business expenses when you’re self-employed? Here are some of my most popular blog posts on this topic…
- How to Claim Self Employed Expenses
- Can I Buy a Car Through my Business as a Sole Trader?
- Are Training Costs Tax Deductible?
- Claiming for Clothing When You’re Self-Employed
- Claiming Food & Drink Expenses If You’re Self-Employed
- Claim For Your Home Office If You’re Self-Employed
Any Questions?
I’d love to help if you have any questions about this topic. Feel free to ask over in my group ‘The Self-Employed Club‘.
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