How to Start a Life Coaching Business in the UK

Life coaching has grown significantly in the UK, with individuals and businesses increasingly recognising the value of professional coaching. If you have the skills and passion for helping people achieve their goals, here is how to set up your coaching business properly.

Qualifications

Life coaching is an unregulated profession — anyone can call themselves a life coach. However, professional training significantly improves your credibility and effectiveness:

• ICF accredited programmes (International Coaching Federation) — the globally recognised standard
• EMCC accredited programmes (European Mentoring and Coaching Council)
• AC accredited programmes (Association for Coaching)

Accreditation through ICF, EMCC, or AC demonstrates commitment to professional standards and ethical practice. Many corporate clients require coaches to hold recognised accreditation.

Sole Trader or Limited Company?

Most life coaches start as sole traders. Low cost, simple admin, and suited to the typical coaching income. Consider a limited company if you grow into corporate coaching with higher earnings.

Registering with HMRC

Register for Self Assessment within three months. VAT at £90,000 turnover. If your clients are businesses (executive coaching, corporate programmes), voluntary VAT registration may be worthwhile.

Insurance

• Professional indemnity — essential. Covers claims if your coaching causes a client harm or loss. £150–£400 per year.
• Public liability — if clients visit your premises or you hire venues for workshops
• Employers' liability — if you hire staff or assistants

Claimable Expenses

• Training and accreditation — coaching qualifications, CPD, supervision
• Professional memberships — ICF, EMCC, AC
• Home office costs — flat rate or actual proportion
• Venue hire — for in-person coaching sessions or workshops
• Software — video conferencing, scheduling tools, CRM, coaching platforms
• Marketing — website, social media, advertising, networking events
• Travel — to client meetings or workshops, at 45p per mile
• Phone and broadband
• Books and resources — coaching methodology, psychology, personal development
• Insurance premiums
• Accountancy fees
• Supervision costs — professional supervision is recommended by all coaching bodies

Accounted handles your expenses automatically — photograph receipts and they are categorised and matched to your bank.

Pricing

• Individual coaching — £50–£200 per hour (varies widely by experience and niche)
• Executive coaching — £200–£500+ per hour
• Group coaching — £30–£100 per person per session
• Online programmes — £200–£2,000+ per programme
• Corporate contracts — £500–£2,000+ per day

Package pricing (6 or 12 sessions) is common and provides more predictable income than pay-per-session.

Building Your Practice

• Niche down — career coaching, executive coaching, relationship coaching, health coaching. Specialists command higher fees.
• Offer discovery calls — free 20–30 minute calls to convert leads
• Social media — LinkedIn for corporate, Instagram for personal development
• Content marketing — blog, podcast, or YouTube to demonstrate expertise
• Networking — business networking groups, coaching communities
• Testimonials — with client permission, testimonials are powerful

Bookkeeping Tips

• Separate business and personal finances
• Track income by client and programme type
• Invoice corporate clients promptly
• Record all training and CPD expenses
• Set aside 25–30% of profits for tax

Accounted connects to your bank and categorises transactions with AI. Designed for UK professionals.

Key Deadlines

• 31 January — Self Assessment and payment
• 31 July — second payment on account
• Quarterly — VAT returns if registered

Getting Started

Life coaching is a rewarding career that lets you make a genuine difference in people's lives. Get trained, get accredited, and keep your business finances in order.

Ready to coach your finances into shape? Sign up for Accounted and let Penny handle the admin while you focus on your clients.