Life Coaching You may be allowed to deduct some of your life coach's fees from your taxes if they only advise you on business growth and business expenses. In most countries, self-employed individuals and companies can deduct fees for professional development, education and consulting. Ireland is no different, but only if these services directly affect the company and contribute to business growth. Tax breaks for a private taxpayer also do not include counseling as an available service, as is the case with therapy or education (with the exception of computer and foreign language courses).
That's why life coaching can't be considered a tax-deductible service, after all. Life coaching comes in many different shapes and sizes and are sometimes tax-deductible. It's important to find out if you can use life coaching as a taxable expense. The answer for most cases is yes when certain criteria are met.
A business coach would be deductible. A PayPal receipt should be sufficient to determine that the amount was paid, but it would also keep a copy of your contract or agreement to prove that you are the previous type of coach. Claiming advice as a business expense on your tax return is a practical way to reduce your tax bill. However, the HMRC rules on the types of training you can and cannot request are very strict.
This is because they want things to be fair for all members of the self-employed community. They'll be able to provide you with the latest tax information for tips, such as deductions and exemptions. Therefore, most of the work I do with business owners is based on training and education, rather than being called life coaching. Therefore, hiring a life coach may not be considered a tax-deductible expense because the ATO may think that life counseling does not directly affect a company or contribute to business growth.
While I provide traditional training services, I also provide training and consulting services, which are tax-deductible. This must be done with “accounting, legal and other fees” or “other allowable business expenses”. You'll need to report the cost of training allowed in the self-employment section of your tax return. Training programs like this usually include vital advice, but they also include business consulting and mentoring.
However, this will depend on the type of training you have booked to help you understand how the rules work. In his case, the main objective was to help his company and, therefore, he was able to use training as a taxable expense. If your company's turnover exceeds 85,000 pounds sterling, you'll need to enter a breakdown of your expenses in the boxes set by HMRC and you'll need to include your work clothes. Therefore, if you are going to hire a personal or professional trainer, the ATO (Australian Tax Office) may not consider it a work-related expense and you may not be able to claim them as deductions.