Are life coach expenses tax deductible?
Life coaching comes in many different shapes and sizes and sometimes they are tax-deductible. It’s important to find out if you can utilise life coaching as a taxable expense. The answer for the majority of cases is yes when certain criteria are met.
Life coaching is an umbrella term that can include a wide range of approaches. While I do provide traditional coaching services, I also provide training and consulting services, both of which are tax-deductible.
For example, communication is a vital area for many different small business owners and professionals. The skills and knowledge included in these 1-2-1 programmes would increase communication effectiveness. This is a common area of investment for many business owners.
To put this into perspective, recently I received an enquiry from a woman who wanted to improve her confidence and communication skills. In her role as an entrepreneur, she felt held back by her self-confidence, communication skills and a lack of clarity moving forwards due to fear. All of these issues were preventing her from growing her client base, enjoying her work and expanding her business.
In our sessions together, we worked to resolve these issues.
As a result of this, not only did her work and finances improve, but her family dynamics improved, her relationship became stronger, and she felt more at peace with herself. There were many additional benefits that came with the business-related work we undertook together. In her case, the primary goal was to help her business and therefore she was able to utilise the training as a taxable expense.
When we go through our discovery session, we will identify if and how your business or career is being affected and can discuss what your primary focus is for our work together.
I alos provide many different coaching programmes for entrepreneurs and business owners. These training programmes are designed to improve performance at work. This form of training often includes helping to improve communication skills, emotional intelligence, and public speaking. All of which are essential for business growth.
Training programmes such as this often include life coaching, but they also include business consulting and mentoring. All of these are perfectly suitable for being a tax-deductible expense because the sole aims and intentions are to improve work performance.
It is very, very common for my clients to report that although we worked on improving business performance, many other areas of life improve as well. Communication and speaking training often improves self-esteem, family dynamics, relationship satisfaction, and overall wellbeing. These alone would not be appropriate as a tax-deductible expense. But as unexpected side-effects of business coaching and consulting, they are pleasant bonuses.
This woman invested in tax-deductible life coaching to work on her two businesses. As well as transforming her business performance, she also upgraded her home and learnt emotional tools.
The majority of the work I do with business owners is, therefore, training and education-based, as opposed to being called life coaching. All of my life coaching skills are brought to the table but because of the specific business aims of the sessions, these usually fall under the title of business consulting.
One of the most important elements of this work is creating clear metrics and objectives that can be measured. Depending on the type of business you are involved in, your specific targets will be unique to you. But by creating clarity around your business goals, we can then work towards achieving them.
Tax Deductible Life Coaching
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