Do I have to charge VAT?
If your sales in a running 12 months are less than £85,000 there is no requirement to register for VAT but if they are above this magic figure than the answer is….it depends
HMRC have a VAT Notice which does covers this, but to explain, if you are a registered medical professional listed under Paragraph 2.1 then you are exempt from VAT if you are a registered health profession under one of the headings below
- medical practitioners
- optometrists and dispensing opticians
- professionals registered under the Health Professions Order 2001 – these professionals are, arts therapists, biomedical scientists, chiropodists or podiatrists, clinical scientists, dietitians, hearing aid dispensers, occupational therapists, operating department practitioners, orthoptists, paramedics, physiotherapists, practitioner psychologists, prosthetists and orthotists, radiographers, and speech and language therapists, but will also include any medical care professionals added to the Order at a future date
- osteopaths
- chiropractors
- nurses, midwives and health visitors
- dentists, dental hygienists, dental therapists, dental nurses, clinical dental technicians, dental technicians and orthodontic therapists
- pharmacists
- Physiotherapist independent prescribers and podiatrist independent prescribers
It is unfortunately the case that therapists such as acupuncturists, psychotherapists, hypnotherapists and others who do not have statutory registers as described in paragraph 2.1 cannot currently exempt their services from VAT
Contact us if you are concerned about the implications of VAT registration for your therapy business
