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