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.
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.
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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.
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.
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.
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.
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.