Value Added Tax (VAT)
We understand that there is some uncertainty regarding whether BPC Registrants are exempt from VAT. With this in mind, we have produced the brief guidance below to clarify the situation.
- In accordance with the Government website, professionals providing goods or services with an annual turnover of over £85,000 must be VAT registered (gov.uk/vat-registration/when-to-register).
- Whilst statutory Healthcare professionals are exempt from VAT on the services they provide, BPC Registrants are not currently exempt from VAT. This is expressly stipulated within the Government’s VAT Notice 701/57 which states, at paragraph 2.2 that:
“Therapists such as acupuncturists, psychotherapists, hypnotherapists and others who do not have statutory registers as described in paragraph 2.1 cannot currently exempt their services.” (www.gov.uk/guidance/health-professionals-pharmaceutical-products-and-vat-notice-70157)
- As BPC Registrants will already be aware, the BPC continues to work with the UKCP and BACP to support the extension of the VAT exemption to psychotherapists and Counsellors on the accredited registers to remove the significant barrier to people accessing care privately and to address the lack of parity between physical and mental health, and between mental health practitioners.