HM Revenue and Customs Brief 43/09
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Issued 22 July 2009
VAT: Psychologists’ services
With effect from 1 July 2009 practitioner psychologists are regulated by the
Health Professionals Council meaning that any supplies of medical care they make
became exempt from VAT from that date. Practitioner psychologists come under
seven domains: clinical, counselling, educational, forensic, health,
occupational, and sport/exercise. Psychologists who work purely in academic
research and experimental psychology and who do not offer services to the
general public are excluded from regulation meaning that there will be no change
in the VAT treatment of their services.
By 'medical care' we mean any service relating to the protection, maintenance
or restoration of the health of the person concerned, including mental health.
Medical care would include services such as counselling, working with children
with emotional problems, dealing with criminals’ behavioural problems or running
stress management courses.
However, as is the case for all health professionals, the VAT exemption
excludes services that are not primarily for the benefit of the patient, for
example, assessing a patient's mental condition for legal reasons at the behest
of a third party. This is because the primary purpose of such services is to
enable a court to take a decision on whether the patient is fit to stand trial
rather than any immediate concern about the patient’s mental health.
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Article Published/Sorted/Amended on Scopulus 2009-07-30 10:55:11 in Tax Articles