Extending VAT exemption to counselling and psychotherapy
The Partnership of Counselling and Psychotherapy Bodies (PCPB) has published a new report on the importance of extending an exemption on VAT to counsellors and psychotherapists.
Providers of counselling and psychotherapy services are required to register for VAT when taxable turnover exceeds (or is likely to exceed) £90,000 in a 12-month period. VAT fees are therefore either absorbed by the provider, or passed on to the client.
The report details the negative impact on many therapeutic services being subject to VAT, compared to others (such as psychologists, art therapists and drama therapists) whose service are VAT exempt. The paper also demonstrates how extending the VAT Exemption on all forms of psychotherapy can improve access to therapy, and reduce pressure on NHS services.
The paper has been sent to officials at HM Treasury, and further discussions will take place in the summer, prior to the Chancellor’s Autumn Statement.
Click here to read the report.
