Can I claim expenses for business-related coaching or mastermind groups?

Can I claim expenses for business-related coaching or mastermind groups?

Business owners and self-employed professionals often invest in coaching programs, mastermind groups, mentoring circles, and other forms of structured guidance to grow revenue, sharpen strategy, and improve leadership. These services can be expensive, and the natural next question is whether the cost can be claimed as a business expense for tax purposes. The answer is: sometimes, but it depends on what the coaching is for, how your business is structured, and how clearly you can show a business purpose.

This article explains the typical principles tax authorities use when judging deductibility, the kinds of evidence that help, the most common “red flags,” and practical steps to document and allocate costs. It also covers mixed-use programs (business plus personal development), travel and event add-ons, subscriptions and memberships, and how to handle coaching paid in bundles or long-term retainers.

The basic rule: deductible only if it’s for the business

Most tax systems follow a similar underlying concept: you can generally deduct expenses that are incurred wholly and exclusively (or primarily and necessarily, depending on jurisdiction and business structure) for the purposes of carrying on your trade or business. Coaching and mastermind fees sit in an area where the boundary between “business development” and “personal development” can blur, so the key is whether the expense is truly connected to earning business income and running the business.

If you can show that the coaching or mastermind relates directly to your business activities—such as improving your pricing, marketing systems, sales processes, operational efficiency, client delivery, management practices, or industry-specific skills—then you are more likely to be able to claim it. If the program is substantially personal (for example, relationship coaching, general life coaching, or wellness coaching with no clear business component), it is more likely to be treated as non-deductible.

Coaching vs. training vs. education: why the label isn’t enough

It’s tempting to think that “coaching” automatically equals “business expense,” but tax treatment rarely turns on the label. A program called “CEO Mastermind” might be largely personal development, and a program called “Mindset Reset” might include practical sales systems. Tax authorities and auditors focus on what the service actually provides and how you use it in the business.

In practice, coaching and masterminds tend to fall into a few categories:

1) Skill-based or role-based business coaching. This is coaching tied to specific business skills or your role in the business: leadership coaching for a managing director, sales coaching for a consultant, operations coaching for a studio owner, or strategic planning coaching for a founder. This category is often the easiest to justify as business-related when the topics clearly map to your commercial activities.

2) Industry-specific mentoring or advisory programs. If the mentor is guiding you on matters like regulatory compliance in your field, technical delivery methods, or sector-specific commercial strategy, the business connection is usually straightforward.

3) Mastermind groups focused on business growth. Masterminds often include structured sessions on marketing, hiring, systems, and accountability. If you can show that the mastermind provides business frameworks and you apply them in your business, it is usually easier to argue deductibility.

4) Broad personal development programs with some business relevance. Programs that emphasize confidence, mindset, purpose, or personal transformation may still have business benefits, but the “personal” element can be dominant. These are more likely to be challenged or require apportionment.

5) Hybrid memberships and communities. Some programs combine training modules, group calls, private communities, conferences, and perks. These can be deductible, partially deductible, or disallowed depending on the mix.

What makes a coaching or mastermind expense more clearly deductible?

If you want your claim to be robust, your goal is to show a clear chain between the expense and your business income or business operations. The strongest cases tend to share these characteristics:

The content is business-specific. The program addresses business strategy, marketing, sales, leadership, management, operational systems, financial management, or technical skills you use in your business.

You can identify business outcomes. You used the coaching to launch an offer, improve conversion rates, restructure a team, refine client onboarding, renegotiate supplier terms, or implement a new service delivery system.

The program is relevant to your current trade. Coaching that enhances skills for the business you already run is usually easier to justify than coaching that prepares you for a new industry or a future business you have not started.

There’s business documentation. Invoices are issued to the business, the agreement names the business as the client where appropriate, and the program description references business deliverables. You keep notes, action plans, or implementation records demonstrating business use.

The nature of the service is professional. A business coach, consultant, or advisor providing structured business sessions may appear more clearly business-related than a program that resembles personal therapy or general self-improvement.

Common situations where claims are more likely to be challenged

Coaching and mastermind expenses often become contentious when they are hard to distinguish from personal spending. Here are frequent “audit-risk” scenarios:

“Mindset-only” or “life coaching” programs. If the program’s focus is general confidence, happiness, relationships, or spirituality, the business connection may be viewed as incidental. Even if you feel it helps you perform better at work, tax rules usually require more than a subjective benefit.

Programs marketed as “transformational” or “healing.” Even if these programs are attended by entrepreneurs, tax authorities can regard them as personal.

Luxury retreats with minimal business content. If the program includes resort accommodation, spa experiences, sightseeing, or leisure activities and the business agenda is limited, the expense may be disallowed wholly or in part.

Coaching aimed at starting a new business. Pre-trade or start-up costs are handled differently in many systems. Coaching incurred before a business exists or before trading starts can be restricted or treated as capital/start-up costs rather than routine deductions.

Family members attending. If you pay for a partner to attend a retreat or mastermind, or the event includes a “plus-one” experience, the personal component is obvious and often non-deductible.

Vague invoices and poor records. Invoices that say only “coaching” without details, paid from personal accounts, with no supporting notes or evidence, are easier to challenge.

Personal benefit does not automatically mean non-deductible

Many legitimate business expenses have some personal benefit. For instance, a laptop used for work may also be enjoyable to use personally, and a business trip may include a great meal. Tax authorities don’t usually disallow expenses merely because you enjoyed them. The problem arises when the personal benefit is central to the expenditure rather than incidental.

With coaching, the “personal benefit” question is particularly important. Leadership coaching might improve your confidence and stress management, but if it is clearly aimed at helping you manage a team, communicate with clients, and make better commercial decisions, it can still be business-related. The key is the underlying purpose and the nature of what you are buying.

Mixed-purpose programs: when you may need to apportion

Some coaching or mastermind offerings combine business and personal elements. If a program includes a mix—say, business strategy sessions plus wellness sessions, or marketing workshops plus general self-development—then a full deduction may not always be appropriate. In many tax systems, mixed-purpose costs need to be apportioned so you claim only the business portion.

Apportionment requires a reasonable basis. Depending on the program structure, that could be:

Time-based allocation. If 60% of sessions are business training and 40% are personal development, you may claim 60% of the fee, assuming the split is evidenced by an agenda or schedule.

Component-based allocation. If the invoice breaks out items (e.g., “business mastermind membership” plus “retreat accommodation”), you may claim the business component and exclude the personal or leisure components.

Value-based allocation. If certain components clearly drive most of the fee (for example, private business strategy calls), you may allocate more cost to those, provided your method is defensible and consistent.

When in doubt, conservative apportionment usually reduces risk. A claim that acknowledges mixed purpose can look more credible than an “all-or-nothing” claim where the personal element is obvious.

Coaching that helps you “get better at your job” vs. coaching that creates a new trade

A common dividing line in tax logic is whether you are improving skills within your existing trade versus acquiring skills for a new trade. Business coaching that helps you run your current business more effectively often falls into the former category. Coaching that is essentially retraining you for a new career or launching a different business can be treated differently.

For example, if you run a marketing agency and pay for coaching to improve your agency’s sales process and client retention, the business link is direct. If you run a marketing agency and pay for a program to become a yoga instructor, even if you think it will “reduce stress and make you a better entrepreneur,” the connection is likely too remote. If you are closing your agency to start a yoga studio, the expense may be seen as preparing for a new trade rather than supporting the current one.

Business structure matters: sole trader vs. company

How your business is structured can affect how coaching expenses are treated and what additional rules might apply.

Sole traders and partnerships. Expenses are usually judged by whether they are incurred for the business activity. If the coaching is strongly personal, it may be disallowed. Mixed-use may need apportionment.

Limited companies. If the company pays for coaching that benefits a director or employee, it may still be deductible for the company if the coaching is for the business. However, if the coaching is primarily personal, there may be an additional issue: it could be treated as a personal benefit provided by the company. That can create separate tax consequences for the individual receiving the benefit, depending on local rules.

In a company context, it becomes especially important that the coaching is tied to the person’s role and responsibilities within the company and that there is a clear business rationale for the company paying.

What about masterminds with travel, accommodation, and meals?

Many masterminds include in-person meetups, conferences, or retreats. The fees might cover attendance, training materials, private dinners, venue costs, and sometimes accommodation. Each element may have different tax treatment, and bundling can complicate the claim.

Event fee (training/mastermind access). If the agenda is business-focused, this is the part most likely to be deductible.

Travel costs. Travel can be deductible when the trip is primarily for business. However, if you extend the trip for personal leisure, the additional costs may be non-deductible. If the travel includes a companion who is not working, their costs are commonly non-deductible.

Accommodation. If accommodation is necessary for attending a business event, it may be deductible. But if you stay at a luxury resort and the “retreat” includes substantial leisure elements, the accommodation can be scrutinized. If the accommodation is bundled in a package, you may need to apportion or obtain a breakdown.

Meals and entertainment. The deductibility of meals varies widely by jurisdiction and can be restricted. Group dinners at masterminds might be treated differently from training fees. If your system has special rules limiting meal deductions or disallowing entertainment, apply those rules to this component.

A practical tip: if you’re joining a retreat-style mastermind, ask for an itemized invoice or written breakdown of what’s included. When that’s not possible, keep the agenda, booking confirmations, and evidence of business sessions to support your allocation.

Subscriptions, memberships, and online communities

Many modern masterminds operate as memberships: you pay monthly or annually for access to group calls, online training, templates, and a community platform. These can be easier to justify as business expenses because they resemble professional subscriptions or consulting retainers—provided the content is truly business-related.

However, beware of add-ons such as lifestyle perks, discounts unrelated to the business, or access to non-business courses. If the membership is mostly a community and social network with limited training, it may be more vulnerable to challenge unless you can demonstrate specific business outputs.

How to document coaching and mastermind expenses properly

Documentation is the difference between “probably fine” and “stressful and uncertain.” You don’t need to produce a novel, but you should maintain enough evidence to show what you bought, why it was for the business, and how you used it.

Helpful documentation includes:

Invoices addressed to the business. Ideally showing your business name, address, and the service period.

A contract or terms of service. Even an email confirmation can help, especially if it describes business deliverables.

The program syllabus or agenda. A screenshot or PDF showing topics covered is useful.

Your notes and action plans. Meeting notes, worksheets, implementation checklists, or project plans connecting the sessions to business actions.

Outputs and results. Evidence that you implemented changes: new pricing sheets, marketing campaigns, revised SOPs, hiring plans, a new sales script, or client onboarding documents.

Payment records. Bank statements, card statements, and receipts that match invoices.

Apportionment logic (if needed). A short written explanation of how you split business vs. personal components.

Keep it simple. If you can show an auditor the invoice, the agenda, and a set of notes showing business implementation, you’re in a much stronger position.

What if the coaching is partly about you as a person?

Many founders seek coaching for leadership presence, confidence, communication, time management, stress resilience, and decision-making. These can be framed as business skills, but they can also overlap with personal wellbeing.

The more you can tie the coaching to specific business responsibilities, the better. For example:

Leadership coaching: improving performance reviews, team communication, delegation systems, and meeting leadership expectations.

Communication coaching: improving client presentations, sales calls, stakeholder negotiation, and conflict resolution at work.

Time management coaching: improving operational planning, project delivery, and productivity tied to client obligations.

Confidence coaching: improving sales performance, negotiation, speaking engagements, and leadership in business contexts.

If the program is framed and delivered as professional performance coaching with business goals and measurable outcomes, it is generally easier to support than a program that is primarily therapeutic, medical, or purely personal transformation.

Capital vs. revenue: could a coaching program be “capital” in nature?

Most coaching and mastermind fees are treated like ongoing operating expenses (revenue expenses), especially when they relate to maintaining and improving current operations. However, in some situations a large upfront program could be argued to create a longer-term asset or advantage, particularly if it is essentially a one-time expenditure to launch a new business structure or create a significant enduring benefit.

Whether something is capital or revenue depends on your local rules and the specific facts. If you are unsure, it’s worth discussing with an accountant, especially for high-value programs, multi-year arrangements, or coaching that is closely tied to acquiring or restructuring a business.

Bundled packages, “pay in full” discounts, and multi-month programs

Many coaches sell packages: six months of coaching, a year-long mastermind, or a bundle that includes courses and private sessions. From a bookkeeping perspective, you will often record the expense when incurred according to your accounting method. From a tax perspective, the key is that the expense is supported by an invoice and relates to the business.

To keep the claim clean:

Match the expense to the service period. If you operate on an accrual basis, you may need to allocate the cost across months. If you operate on cash basis rules, you might record it when paid, subject to local limitations.

Keep a breakdown of what’s included. If the bundle includes business coaching plus a personal retreat, document your split.

Be consistent. Treat similar coaching packages similarly year to year.

Coaching for employees: training and staff development

If you employ staff, paying for coaching can be part of staff development. Executive coaching for managers, training programs to improve sales performance, or professional mentoring for key employees can be a normal business cost.

In these cases, you still want a business rationale: what role the employee has, what performance goals the coaching supports, and how it improves business operations. Internal documentation like a professional development plan or performance objectives can strengthen the business purpose.

When the business pays for the owner’s coaching

Owner coaching is common, particularly in small businesses where the owner is the primary rainmaker and decision-maker. This can be deductible when the coaching clearly supports business activities. But because the owner is also an individual who may benefit personally, it’s wise to tighten up documentation and avoid anything that looks like personal spending pushed through the business.

Practical steps that help:

Use a business email and business name in enrollment. This helps show the business is the customer.

Ask for invoices in the business name. If you only have personal invoices, keep evidence showing the coaching relates to business goals.

Keep business-focused session goals. Maintain a running list of business objectives for the coaching engagement.

Separate personal coaching from business coaching. If you also work with a therapist or a personal coach, keep those costs clearly separate and don’t try to claim them as business.

Examples: likely deductible, likely not deductible, and grey areas

Examples can help clarify the principles. These are general illustrations and your local rules may differ, but they show how tax reasoning often works.

Likely deductible

A consultant joins a mastermind focused on lead generation and referral partnerships. The group provides marketing frameworks, weekly accountability, and guest experts on pricing and sales. The consultant can show they implemented a new referral system and updated proposals. This has a direct business link.

A company pays for executive coaching for a sales director. The coaching is focused on leadership, pipeline management, and team performance. The company documents the performance objectives and the coach provides a professional engagement summary. This looks like staff development.

A tradesperson hires a business coach to systemize operations. The coaching focuses on scheduling, quoting, hiring apprentices, and improving cash flow. The notes show SOPs and new pricing tools were implemented.

Likely not deductible

A business owner attends a general wellness retreat marketed as “healing and transformation.” There is limited business content and the primary purpose appears personal wellbeing and lifestyle. Even if the owner returns motivated, the business link may be considered incidental.

Someone buys a “find your purpose” course with no business deliverables. If the course is not tied to current business activity, it is likely personal.

A founder pays for relationship coaching and claims it improves business performance. The connection is too indirect in most tax frameworks.

Grey areas (need strong documentation or apportionment)

A “mindset and sales” program. If the program mixes personal mindset work with practical sales systems, apportionment may be appropriate unless the business content is clearly dominant and evidenced.

A retreat that includes business sessions plus leisure activities. If the business agenda is structured and substantial, you may claim the business portion, but you may need to exclude or split leisure components, travel extensions, and companion costs.

Coaching aimed at pivoting the business into a new model. If you’re shifting within the same trade, it may be deductible; if it’s effectively a new trade, treatment may differ. The facts matter.

Practical checklist before you claim

Use this checklist to decide whether your coaching or mastermind expense is likely to be claimable and how to strengthen your position:

1) Is the coaching directly connected to your current business? If it’s clearly tied to your trade, you’re on stronger ground.

2) What does the program actually cover? Save the syllabus, agenda, and promotional description.

3) Is there a personal element? If yes, decide whether you should apportion and document your method.

4) Is the invoice in the business name? If not, keep extra documentation showing business purpose.

5) Do you have evidence of implementation? Notes, plans, deliverables, and business outputs matter.

6) Are there travel or meal components? Separate and treat them according to your local rules.

7) Does your business structure add complications? If your company pays for owner coaching, consider whether there are benefit implications and document the business rationale.

How to describe the expense in your accounts

How you categorize the cost in bookkeeping won’t override tax rules, but clear categories help demonstrate intent and make records easier to defend.

Common categories include:

Professional fees: If the coaching resembles consulting or advisory services.

Training and development: For skill-building programs tied to business operations.

Seminars and conferences: For mastermind meetups and events, where appropriate.

Subscriptions: For membership-based mastermind communities.

Whatever category you use, consistency helps. If you apportion, record the non-deductible part separately rather than burying it inside a single line item.

What to do if you’re unsure

If you’re uncertain whether a coaching or mastermind expense is deductible, the safest approach is to:

1) Document the business purpose clearly. Write a brief note: what problem you were solving, what business outcomes you targeted, and why the program was necessary for the business.

2) Be conservative with mixed-use programs. Consider apportionment when personal benefit is substantial.

3) Seek professional advice for large amounts. If the fee is significant, or if you’re using a limited company and the coaching benefits you personally, a tailored review can prevent costly mistakes.

4) Ask the provider for better paperwork. A detailed invoice or agenda is often easy to obtain and can make a big difference later.

Bottom line

You may be able to claim expenses for business-related coaching or mastermind groups when the coaching is genuinely connected to your current business and undertaken for business purposes. The more the program focuses on practical business skills and outcomes—and the better your documentation—the more defensible your claim tends to be. If the program is substantially personal development, wellness, or lifestyle oriented, it is less likely to be deductible, and you may need to apportion or exclude it entirely. Clear records, itemized costs, and a sensible approach to mixed-purpose programs are your best tools for getting the benefit of legitimate deductions while keeping your tax position robust.