Share this content

Psychologists, training and VAT Exemption

Is my company VAT exempt

Didn't find your answer?

I’m an HPCP registered clinical psychologist. I am the Director of a Limited Company offering psychological training courses to other mental health professionals. I provide the training courses along with other sub-contracted clinical psychologists. These courses solely relate to the assessment and treatment of patients with mental health Problems and are not for the personal development of course delegates.
We have been charging VAT on our courses. Do we need to or are we VAT exempt? Would the situation be changed if these courses were offered as a sole trader of partnership?

Replies (7)

Please login or register to join the discussion.

chips_at_mattersey
By Les Howard
04th Dec 2020 19:38

Education is exempt when provided by an eligible body, for example, a non-profit with suitable wording in its Constitution. An ‘ordinary’ limited company rarely qualifies.

Thanks (0)
avatar
By frankfx
04th Dec 2020 21:17

Psychologist?
A Please
A Thank you
Helps win friends and garners willingness to assist.
Les Howard answer is spot on.
But study your arrangements past, present and future.

Well worth reading HMRC guidance.

The local Golf Pro is confronted with the same question.Education or not, or in part?

Depends on circumstances and strict adherence to VAT rules

Repeat depends on circumstances.

VAT it's enough to give one the yipps.

Thanks (0)
avatar
By TaylorWoodrowSmith
04th Dec 2020 21:34

Hi. The answers I’m getting so far seem to be from the perspective being an education provider rather than being a healthcare provider. If you look at VAT Notice 701/57 and particularly 4.5 it suggests that the provision of medical lectures are VAT exempt. The issue I guess I’m trying to clarify is whether this applies to a company or partnership offering training by individual Registered healthcare professionals or simply the individual registered healthcare professionals themselves who trade as sole traders

Thanks (0)
Replying to TaylorWoodrowSmith:
avatar
By the_drookit_dug
04th Dec 2020 23:16

The choice of legal entity - ltd co, sole trader or partnership, should not affect the VAT status of the transactions.

Thanks (0)
Replying to the_drookit_dug:
avatar
By The Dullard
05th Dec 2020 12:47

Oh, but it does.

Thanks (1)
Replying to TaylorWoodrowSmith:
avatar
By paul.benny
05th Dec 2020 10:04

Les Howard is very generous here with his expert advice, even though VAT consultancy is what he does for a living. I don't know him and I have no connection but I'm sure you would find it worthwhile to invest in some specific advice.

Thanks (1)
avatar
By The Dullard
05th Dec 2020 13:01

If you are providing (psychological) medical care, then it is VAT exempt.

If you are a perons acting independently of any employer (ie a sole-trader or partnership; ie not operating through a company) providing tuition in a subject ordinarily taught in a school or university, then it is VAT exempt.

If you are an eligible body (broadly read non-profit-making organisation) providing vocational training, then it is VAT exempt.

Your exceedingly loose description - VAT is very precise - suggests that you are providing none of those things. If you are providing none of those things, then it is very likely that it is VATstandard-rated (which is the rule, rather than the exception to the rule).

However, if the nature of the course that you are providing falls squarely within the closing paragraph of section 4.5 of VAT Notice 701/57 so as to amount to your providing (pcyschological) medical care, albeit indirectly and to patients unknown, then it will be VAT exempt within my very first paragraph above.

Let me ask you this though. I am well known here for my psychological problems. Do you think I should be seeking the assistance of random folk off the internet? Or do you think I need the services of a professional? Come on, be honest!

Thanks (0)
Share this content