How to Start a Life Coaching Business: Step-by-Step Guide

If you’re the friend everyone calls for advice, basically a life coach already, just unpaid and fuelled by tea and biscuits, you’ve probably wondered how to turn that knack into a real business.

The trouble is that figuring out where to start, whether you need qualifications, finding clients, and setting pricing can all feel overwhelming.

Here’s a silver lining. Launching a life coaching business in the UK is simpler than it looks. Once you know the steps, it’s perfectly doable.

Read on to see how to start a life coaching business so you can turn pep talks into profit and build a business that actually pays.

Why start a life coaching business in the first place?

Life coaching is booming as more people look for purpose, balance, and clarity in their lives.

From career pivots to confidence boosts, people are investing in coaches to help them make real, lasting changes.

It’s an ideal path if you’re a natural listener, motivator, or problem-solver, the friend everyone calls for advice.

It also suits anyone craving flexibility, meaningful work, and a business built around their strengths and schedule.

Whether you’re changing careers or ready to turn your people skills into profit, life coaching offers a rewarding and future-proof opportunity.

What are the 6 most profitable niches for UK life coaches

When it comes to starting a life coaching business in the UK, some niches are in high demand, and clients are more than happy to pay for the right guidance.

Here are some of the most promising niches to consider:

• Executive & leadership coaching: Big companies will happily pay top rates for coaches who can help their leaders sharpen their skills, improve team dynamics, and boost organisational impact.
• Career coaching: Whether it’s landing a dream job, switching careers, or overcoming burnout, professionals are actively seeking career coaches to help them climb the ladder and reclaim work-life balance.
• Mindset coaching: Limiting beliefs, confidence wobbles, and self-sabotage are everywhere, and entrepreneurs and ambitious go-getters are investing in coaches who can help them push past those blocks.
• Health & wellness coaching: From nutrition and fitness to stress management and lifestyle tweaks, this niche stays in high demand because, let’s face it, everyone wants to feel their best.
• Financial coaching: Money matters, and more people are seeking support with budgeting, tackling debt, and building healthy financial habits.
• Relationship coaching: Love and communication never go out of style. Coaches who can help individuals and couples navigate their relationships are always in demand.

While all of these niches are profitable, career coaching, mindset coaching, and health & wellness coaching stand out as the hottest opportunities right now, thanks to growing demand and clients’ willingness to invest in structured, results-driven programs.

For example, the health and wellness coaching market is expected to bring in around £454 million in 2025, and keep growing by about 7.3% a year to reach roughly £589 million by 2029.

How to start a life coaching business: 6 essential steps

Here are the 6 essential steps to get your life coaching business off the ground in the UK.

1. Pick your niche and ideal client

First things first: pick your lane. Life coaching is a big world, so focus on an area you’re passionate about or have real experience in, such as career growth, wellness, relationships, or leadership.

The real magic happens when you pick a niche that not only pays well but also aligns with your skills and passion.

Then, dig into what your ideal clients actually need and what challenges keep them up at night.

The clearer and more specific your niche, the easier it is to stand out from the crowd and attract clients who are a perfect fit for your services.

2. Register your business

Once you’ve nailed down your niche, it’s time to make things official, because even the best coaching skills need a proper business behind them.

In the UK, you’ve got two main options:

• Go solo as a sole trader (self-employed): This is the simplest route and perfect if you’re just starting out. You can trade under your own name or pick a business name, and there’s no need to register a company. Nonetheless, you will need to let HMRC know you’re self-employed for tax purposes.
• Set up a limited company (Ltd): If you want a more formal setup with extra legal protection, a limited company might be the way to go. Registering with Companies House gives your business its own legal identity, meaning your personal assets are generally protected if anything goes wrong.

There’s no one-size-fits-all answer here.

If you’re testing the waters or want to keep things simple, sole trader status is quick and easy.

But if you’re dreaming big from day one, planning to scale, or want that extra layer of credibility and protection, going limited could be worth the effort.

With ANNA Money, getting your business up and running couldn’t be easier, whichever setup you choose.

You can register your company online in just a few hours, with free same-day formation to speed things along.

As soon as that’s done, your UK business account will be ready to use, so you can jump straight into managing clients, sending invoices, and tracking expenses.

Not sure where to start? No problem. We’re there to walk you through the whole process, from registering your business and opening your account to handling things like VAT when the time comes.

Also, you can immediately check if your dream name is taken with our Business Name Generator.

3. Understand legal requirements

Because life coaching is currently an unregulated profession, you don’t need any official licence or government-issued certification to get started.

Unlike therapy or medical services, there’s no statutory body overseeing coaching.

If you’ve got the skills, the passion, and a commitment to working ethically, you can offer your services without jumping through licensing hoops.

That said, there are a few legal and practical steps you’ll still need to handle to keep your business above board:

1. Register Your Business

Even though there’s no coaching-specific licence, you do need to register your business with HMRC.

Most coaches either operate as a sole trader (the simplest option, but you’re personally liable for any debts) or set up a limited company, which offers more protection but comes with extra admin.

Registering ensures you’re paying the right taxes and can issue invoices legally.

2. Follow consumer protection laws

You’ll also need to stick to UK consumer protection rules.

That means being upfront and honest about your services, pricing, and what clients can expect, no exaggerated claims or misleading promises.

Clear contracts are a must, outlining what you offer, your fees, cancellation terms, and clients’ rights. It’s all about building trust and keeping things transparent.

3. Handle client data responsibly

If you collect any personal information, whether it’s emails, notes, or session details, you’re responsible for protecting it under GDPR.

That usually means registering with the ICO (Information Commissioner’s Office) and paying a fee of £52 or £78.

You’ll also need a clear privacy policy and secure data storage, as well as consent from clients to hold and use their information.

4. Protect yourself with insurance

While insurance isn’t legally required, it’s a smart safety net. Most coaches choose:

• Professional indemnity insurance (to cover claims of negligence),
• Public liability insurance (in case of accidents involving clients), and
• Employers’ liability insurance if they hire staff.

It’s peace of mind and can save you from major headaches later.

5. Consider certification (even if it’s optional)

You don’t need a certificate to call yourself a life coach, but many professionals choose to get accredited through organisations like the International Coaching Federation (ICF). It shows clients you’re serious about your craft and committed to ethical standards — which can give you a big credibility boost.

💡 In short: You don’t need a licence to become a life coach in the UK, but you do need to treat it like a real business, with proper registration, compliance, data protection, and good insurance.

That, combined with strong ethics (and preferably a certification), sets you up for a credible, trustworthy coaching practice.

4. Build a marketing strategy

Once your coaching business is ready to roll, it’s time to spread the word.

Clients don’t want a faceless company; they want to connect with a real person they can trust. So lean into authenticity.

• Showcase your personality, values, and the results you help people achieve.
• Use genuine testimonials, storytelling, and on-brand photos that reflect who you are. Keep it consistent across your website, social media, and every touchpoint.

Create coaching packages that speak to your clients

Design coaching packages tailored to your niche and clients’ specific needs.

Maybe that’s a 6-week career reboot, a 3-month wellness journey, or leadership coaching with bonus group calls.

Spell out what’s included and what outcomes clients can expect.

It makes your services easier to market, and it also helps people see the value before they even speak with you.

Pick the right platforms for your message.

Which social media channel you show up on depends on who you’re talking to.

• LinkedIn is gold for career and executive coaching, where professionals and businesses hang out.
• Instagram is perfect for wellness and lifestyle coaching — think visuals, reels, and behind-the-scenes vibes.
• Facebook works well for relationship and general life coaching, especially with groups and community-building.

And don’t forget content marketing. Regular blog posts, videos, or podcasts that share your insights build credibility and draw in clients who already trust your expertise.

💡 Marketing isn’t ‘set it and forget it.’

Keep an eye on what’s working: Track your website visits, social engagement, leads, and feedback. Then tweak your approach as trends shift and your audience evolves.

5. Set up your business operations

Clients expect a slick, seamless experience from the moment they discover you to their final coaching session, and the right tools make that happen.

Here’s what may come in handy.

• Scheduling tools like Calendly can save you from endless back-and-forth emails by letting clients book sessions directly into your calendar.
• Payment platforms like Stripe, PayPal, or GoCardless make paying for sessions quick and easy, and you can even automate recurring payments for package deals or memberships.
• CRM systems (HubSpot, Dubsado, or HoneyBook) help you track leads, manage client info, and keep communication organised, so nothing slips through the cracks.
• Video conferencing platforms, such as Zoom, Microsoft Teams, or Google Meet, are a must if you’re running sessions online.

6. Stay on top of taxes and records

Once your business is live, you’ll need to register for income tax and keep accurate records of what you earn and spend.

If you operate as a sole trader

Most new life coaches in the UK kick things off as sole traders.

It’s the simplest way to get started. If you go down this route, you’ll pay Income Tax on any profits above your personal allowance, which is £12,570.

On top of that, you’ll also need to pay National Insurance Contributions (NICs), specifically Class 2 and Class 4.

And yes, you’ll have to complete a self-assessment tax return each year. It’s how you report what you’ve earned, work out how much tax you owe, and stay on the right side of HMRC.

If you operate as a limited company

If you decide to set up your coaching business as a limited company, things work a little differently tax-wise.

Instead of paying income tax on your profits, your company will pay Corporation Tax, which is 25% on profits over £250,000.

As a company director, you can choose to pay yourself through a mix of salary and dividends. This approach can be more tax-efficient than taking everything as salary, but it does come with extra admin and a bit more planning.

You’ll also have a few more reporting responsibilities: limited companies need to file annual accounts with Companies House and submit a Corporation Tax return to HMRC each year.

And, if you’re receiving director's income from a limited company, you must file an annual self-assessment tax return to HMRC.

It’s a little more paperwork than being a sole trader, but many coaches find the trade-off worth it for the legal protection and growth potential a company structure offers.

How about VAT registration?

VAT registration is required if your taxable turnover exceeds the VAT threshold, which is £90,000.

If your business income goes over the VAT threshold, you’ll need to register, and the clock starts ticking pretty quickly.

You have 30 days from the end of the month in which you crossed the threshold to get registered.

Your official VAT registration date will then be the first day of the second month after you pass the threshold.

So, for example, if you go over the limit in June, you’ll need to register by the end of July, and your VAT registration will officially start on 1st August.

It’s worth keeping a close eye on your income so you don’t miss the deadline. Registering late can lead to fines.

If all of the tax obligations seem daunting and complex, well, you’re right. But a good bookkeeping system or accounting software can make this much easier and help you stay compliant.

✨ ANNA handles payroll, VAT filing, and Corporation Tax on your behalf, and helps you stay on top of your books by giving you quick, simple tasks to keep your books tidy.

The higher your score, the more tax you could be saving!

How to start a life coaching business: Wrapping it up

Launching a life coaching business is a bit like guiding a client through a big life change: it’s all about clarity, action, and building momentum one step at a time.

You don’t need to have every detail perfect from day one, but understanding the essentials, from choosing your niche to getting your legal and tax ducks in a row, gives you the strong foundation you need to grow with confidence.

And just like a great coach helps simplify the journey for their clients, ANNA Money can make your business journey far smoother.

With free company registration, smart invoicing, tax reminders, and an easy-to-use business account, ANNA takes the stress out of the financial and admin side, so you can focus on what you do best: helping people transform their lives.

Why ANNA works for a life coaching business?

Getting your life coaching business off the ground doesn’t have to be complicated, and ANNA Money proves it.

It’s a one-stop solution that helps you set up your company, stay on top of taxes, and handle the day-to-day admin hassle-free.

With ANNA, you can:

🌿 Set up your UK limited company online in minutes: Companies House fees are included, so you can get started without extra admin.

🌿 Open your ANNA business account right away during the registration process, no waiting around.

🌿 Stay compliant with ease by managing annual filings, updating company details, and handling changes to directors or shareholders.

🌿 Automate the boring but necessary bits such as corporation tax submissions, VAT returns, and payroll, perfect for keeping your startup tax-compliant without the stress.

🌿 Earn 1% cashback on purchases made with your ANNA debit card. A handy way to save on costs like tools, supplies, or materials.

🌿 Get instant spending notifications so you’re always on top of your budget and cash flow.

🌿 Connect seamlessly to your accounting software for straightforward, stress-free bookkeeping.

🌿 Stay organised: snap and store receipts, issue invoices, track expenses, and categorise transactions for accurate tax returns.

🌿 Collect payments the easy way with shareable payment links you can send via WhatsApp, add to your Instagram bio, or even print as a QR code.

Ready to make your life coaching business easier to run?

ANNA Money gives you everything you need to stay organised, compliant, and in control, all from one simple account.