Extending VAT exemption to counselling and psychotherapy services
The Partnership of Counselling and Psychotherapy Bodies (PCPB) has published a report on how extending VAT exemption to the provision of counselling and psychotherapy services will help the government deliver a series of core policy outcomes on their mental health agenda.
The report, written by the PCPB Policy and Strategic Engagement Group, highlights the current situation of an unfair anomaly with similar psychological therapy practitioners, such as psychologists, art therapists and drama therapists, whose services are exempt from VAT.
Providers of counselling and psychotherapy are required to register for VAT when their taxable turnover from the provision of mental health services exceeds, or is likely to exceed, £90,000 in a 12-month period. VAT fees either have to be absorbed by the service provider or passed on to the client, despite cost often being the biggest barrier to accessing professional mental health support.
The paper concludes that removing VAT on counselling and psychotherapy services would help to make these services more affordable, improve access and help to reduce NHS waiting lists.
The report will be presented to relevant government departments and interested parliamentarians, and used to inform our joint responses to relevant consultations and inquiries. This work is part of the PCPB’s ongoing commitment to promote the counselling and psychotherapy profession and its value to parliamentarians and policymakers across the UK.
