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Tax deductible expenses psychotherapist

Tax deductible expenses psychotherapist

My client who is a qualified and registered self employed psychotherapist incurs analytic and supervision fees as an integral part of her professional practice. She classifies it as part of her continuing professional development. She does have other employment income in the same field. Can these analytic fees be offset against her self employment - there is nothing in her employment contract obliging her to undertake these costs so it seems this would be more appropriate, but I wouldn't want to overclaim expenses if there was likely to be an element of doubt as to their eligibility. I have been trying to find a reference in case law or HMRC guidance but can't find anything relevant can anyone help please?


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16th Nov 2011 09:48

Although I can't point you towards specific instructions I can encourage you with the claim. I had a similar case taken up for enquiry and HMRC were adamant that the supervision and analysis costs were personal and should be disallowed. After a long correspondence however HMRC did accept that these costs are incurred as a necessary part of practising in this field. It is important that the practitioner is aware of his/her own "issues", prejudices etc whilst treating others. As every analyst has to undertake a course of analysis I think it is clear that this is a business cost and any personal benefit is incidental.

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16th Nov 2011 10:53

Self-employed cost

You're not going to get anywhere trying to claim these as employment expenses.  Sijolees appears to have specific experience of the point, and what is being said makes perfect sense to me.

If it is a requirement of her regulating/supervising body that she undertakes the analysis and supervision, then it is a necessary cost of practising.

Any benefit she receives by way of enhancement to her ability to earn from employment or from her own improved state of mind is entirely incidental.

The purpose of expenditure determines whether a deduction is permitted, and there seems to me to be a predominant business purpose here.

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