Life & Business Coaches · Online Business · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for Life and Business Coaches —
Packages, Programmes & Course Sales Explained

📅 27 July 2026 ⏱ 7 min read Editorial policy ↗

Packages, Retainers, and Programmes All Count Differently to How They Feel

Coaching income rarely arrives as a simple hourly fee. Most coaches sell packages (say, a 3-month programme paid upfront), monthly retainers, group programmes with multiple participants, and increasingly, self-paced digital courses sold through a platform. Each of these has its own timing question: when does the money actually count as your income?

Under the cash basis, which is the default for most sole traders, income counts when you receive it, not when you deliver the coaching. A client paying £3,000 upfront for a 6-month package in January means that £3,000 is reported in the quarter you were paid, even though you'll still be delivering sessions in June.

Course Sales and Platform Fees

If you sell a self-paced course through a platform (Teachable, Kajabi, Podia), the platform usually deducts its fee before paying out to you. Your qualifying income is the gross sale price before the platform's cut, not the net amount that reaches your bank account — the platform fee is then claimed separately as a business expense.

Worked Example

Atheo. Business coach running 1:1 packages, a small group mastermind, and a self-paced course sold online.

1:1 coaching packages (paid upfront per client): £26,000
Group mastermind programme (8 members, paid quarterly): £12,800
Self-paced course sales (gross, before 5% platform fee): £6,400
Total qualifying income: £45,200 — above the £30,000 Phase 2 threshold, below £50,000. Atheo joins MTD from April 2027. The course platform's 5% fee is claimed as a business expense against his profit, but it doesn't reduce the gross £6,400 figure used in his qualifying income calculation.

What You Can Claim

  • Platform and software subscriptions — course hosting, scheduling tools, Zoom, CRM systems
  • Platform transaction fees — the cut taken by course or payment platforms
  • Your own coaching, supervision, or accreditation costs (ICF, EMCC membership and CPD)
  • Marketing and advertising — social media ads, website hosting, email marketing tools
  • Co-working space or home office costs (proportionate to business use)
  • Professional indemnity insurance
  • Course creation costs — video editing software, freelance help for course production
Quick Check
Check Your Coaching Income
£
£

Best MTD Software for Life & Business Coaches

Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.

Frequently Asked Questions

When does a coaching package I've been paid for upfront count as income?

Under the cash basis, which is the default for most sole traders, it counts as income on the date you receive payment, not spread across the months you deliver the sessions. A £3,000 package paid in January is reported entirely in that quarter.

Is my course income the amount the platform pays me, or the full sale price?

Your qualifying income is the gross sale price before the platform deducts its fee. The platform's cut is then claimed separately as a business expense, reducing your taxable profit but not your gross qualifying income figure.

Do I add my group programme income to my 1:1 coaching income?

Yes, every stream of self-employment income, whether from individual coaching, group programmes, or course sales, combines into one qualifying income figure for MTD purposes.

I'm a coach but also work part-time employed. Does my PAYE income count?

No, PAYE employment income is handled separately through your employer and doesn't combine with your self-employment income when checking your MTD threshold, which only looks at self-employment and property income.

Can I claim my own coaching or supervision sessions as an expense?

Yes, if it's directly related to maintaining your professional accreditation or developing your coaching practice, ongoing supervision and CPD costs are generally an allowable business expense.

See all 102 situation guides →