Self employed income - VAT threshold

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fistophobia

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Asking this for a relation...
She's a self employed psychotherapist, and is disincentivised to earn more. If they earn above 37500, is all the Income liable for VAT?
 
She should check with her professional body. Once CORU has establish a national registration board for Psychotherapists (and it is long overdue) they will definitely be exempt of the 13.5% VAT charge. I'm not sure what the position is in the mean time.

But once she is registered for VAT, she should charge VAT on all future consultations but any consultations earlier in that year do not retrospectively attract VAT.

In future years, after registration, ALL consultations in the year will attract VAT.
 
Medical service is exempt from VAT, not sure if psychotherapy service is in the scope of medical service. If she registers for VAT, I think that she can claim input VAT on her expenses related to her psychotherapy practice. it is the benefit coming out of VAT registration.
 
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and established the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.

The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019.
 
time to plan said:
She should check with her professional body. Once CORU has establish a national registration board for Psychotherapists (and it is long overdue) they will definitely be exempt of the 13.5% VAT charge. I'm not sure what the position is in the mean time.

But once she is registered for VAT, she should charge VAT on all future consultations but any consultations earlier in that year do not retrospectively attract VAT.

In future years, after registration, ALL consultations in the year will attract VAT.
Click to expand...
Not true. See Michael McGraths answer of June 2023 below.
 
CORU does not stand over any VAT designation for therapy services,
They say on website, ask Revenue.... so I interpret that it is NOT exempt from VAT.
 
fistophobia said:
CORU does not stand over any VAT designation for therapy services,
They say on website, ask Revenue.... so I interpret that it is NOT exempt from VAT.
Click to expand...
But I have just pasted the latest decision on this above. There is no VAT on Psychotherapy.
 
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