Therapist deductabilty for therapy /supervision

Therapist deductabilty for therapy /supervision

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Although not required by the HPC, it is considered professionally necessary to have supervision and continuing therapy.

Tax Bulletin No. I had a short note entitled:-

SCHEDULE D CASES I AND II:
EXPENDITURE ON TRAINING COURSES
FOR THE PROPRIETOR OF A BUSINESS [ now deleted} which did not help very much .

Does anyone have any experience of this?

Cured

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By michaelblake
22nd Aug 2005 17:53

Yes after a lot of argument

The text in TB1 was as below:

Expenditure on training courses for the proprietor of a business
There is some uncertainty whether the cost of proprietors of a business attending a training course, directly related to the business activity, is deductible in arriving at the profits chargeable to tax under Schedule D Cases I or II.
Where attendance at a course is intended to give business proprietors new expertise, knowledge or skills which they lack, it brings into existence an intangible asset which is of enduring benefit to the business. We take the view that the expenditure is therefore of a capital nature, and deduction is prohibited by ICTA 1988, s 74(f).
On the other hand, where attendance is merely to update expertise etc which proprietors already possess, the expenditure is normally regarded as revenue expenditure and will be deductible if it satisfies the "wholly and exclusively ... for the purposes of the trade" .

see also BIM 35560.

The other line of HMRC's attack would be that there is duality of purpose and therefore the conditions (that were at) TA 1988 Section 74(1)(a) woul;d not be satisfied.

I have successfully argued for a deduction for a therapist in training but it was long, difficult and costly (for the client) argument and there is no guarantee that the facts would be the same.

If you would like to discuss whether I could help further(on a fee paying basis) please contact me by email at [email protected]

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By steveleather
30th Aug 2005 09:46

This discussion is useful for me too.
I have a new client who is a counsellor. She only had 2 clients and did her own self assessment form only to find she now has a querry from the local tax office. Hence she rang me. She supplied all her information to the office and now we have a meeting booked for next week. She is claiming for supervision and her continuing therapy.
I am confident on the supervision but was not sure about the personal therapy.
Thanks to this discussion I feel more confident that she can claim for both.

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By AnonymousUser
23rd Aug 2005 11:07

British Association of Counselling......
offers guidance on matters which most tax inspectors would know little about. Our practice deals with quite a number of Hypnotherapists, Counsellors and Phycotherapists. We have argued within the context of Sec 9A, over supervisors' costs, therapy costs, and the Inspector backed down and allowed it all.

BA of C advises members to control workloads due to the mentally and emotionally demanding nature of the work. In addition all counsellors must be supported by time devoted to supervision, peer support, and continuing professional development.

Argue the case for all deductibility of such costs. Furthermore, if an inspector argues that all session fees may not be disclosed, refer to the BAofC guidance as to limiting sessions with clients. Does this help?

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By AnonymousUser
24th Aug 2005 10:34

Capital
If new expertise is capital expenditure can there be a claim to capital allowances ?

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