Accountants for Therapists

Accountancy services for therapists

Gm Professional Accountants specialise in catering for practitioners of alternative therapies, we have the expertise to help you navigate the financial and tax maze without stress or difficulty.

  • Over one hundred ‘5 star’ “client satisfaction reviews”
  • 10 years of experience with HMRC with a client service guarantee
  • Business excellence award winners for 2023 for “Most Client-Focused Business Tax & Accounting firm”

We go one step further for our clients.

Find out more

No matter what your circumstances, we are here to help. We can support you with:

  • Accounts, including cloud accounting
  • Bookkeeping
  • Payroll processing
  • Personal tax returns
    and much more

Taxable profit
Your taxable profit is what you have remaining after subtracting your allowable expenses from your income. To give an example, an income of £1,500 and allowable expenses of £400 gives a taxable profit of £1,100.

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Tax allowable expenses

It is essential to be aware that HMRC does not regard all business-related spending as being tax allowable. Tax law stipulates that a deduction for expenses must be wholly and exclusively for the purpose of making profits for the business. This is not always easy to determine as it can be open to interpretation.

Furthermore, some goods and services may be used for both business and private purposes. In these situations it is only the costs incurred in relation to the business that can be claimed, perhaps anti-virus protection for an employee’s computer or work-related calls on their mobile.

Expenses that are usually likely to be permissible include:

• Counselling insurance
• Premises costs, eg electricity and business rates, phone bills
• Office costs, eg laptop computer, memory stick, external hard drive and printer
• Stationery, eg paper, pens, printer ink, stapler, staples
• Website, eg designer, hosting and domain name fees
• Disclosure & Barring Service (DBS) fees
• Financial services, eg accountancy, bookkeeping, banking (eg the fees on a business bank account) or insurance
• Travel costs, eg bus, train or parking tickets or the cost of petrol
• Marketing costs, eg advertisements, consultants’ fees, a Facebook paid promotion or Google Ad Words
• Business cards, flyers
• Counselling directory inclusion fee
• Accreditation and membership fees, eg BACP, UKCP, NCS
• Training and refresher courses for continuing personal development (it must be relevant to the nature of the business and a development of your existing skills)

You are not permitted to claim expenses if you have used your £1,000 tax-free trading allowance for sole traders.

The rules aare difficult and can be challenging to interpret. If you are uncertain as to whether a particular spend on your business is an allowable expense. our tax experts can provide interpretation.

Simplified expenses
Simplified expenses make it possible to avoid having to make complicated calculations when determining business expenses. They can be used for travel by vehicle, working from home and when living at your business premises.

Travel expenses
For travel below 10,000 miles HMRC applies standard mileage rates of £0.45 per mile for a car or van, £0.25 per mile for a motorbike and £0.20 for a bicycle. Actually expenses can be used for sole traders.

As the amount that can be claimed is fixed there is no need to retain receipts for these claims, all that is necessary is a record of the length of the journeys made.

A good method of doing this is to calculate the distance between the address you set out from and your destination, perhaps by using a reputable online distance calculator.

Further examples of allowable travel expenses are car park charges, bus, tram and train tickets, taxi fares and the cost of a hotel room.

With respect to the purpose of a journey, HMRC are explicit that travelling from home to work does not constitute an allowable expense. That designation is reserved for trips such as those made to attend meetings, occupational development, supervision, checking premises or collecting a set of keys.

You can find more information on allowable expenses 

Rent
The cost of hiring a room or premises for counselling or workshops is an allowable expense. This holds true even if you are still liable for paying for it after a client cancels their appointment.

Working from home
If you work from home you will be able to claim a proportion of what you have to pay for rent or mortgage interest, phone and internet usage, Council Tax, heating and electricity.

Work from home covers all business-related activity you undertake and not only the time you spend with a client. For example, it is likely to include correspondence, marketing, training, devising plans and completing paperwork.

In working out that proportion you must use a reasonable method to divide costs. So if your annual electricity bill comes to £300 and you use one of your three rooms at home as an office then it would be reasonable to claim £100 (£300 divided by 3) as your allowable expense for electricity.

Alternatively, if you work 25 hours or more per month and are not operating as a limited company you can use simplified expenses. The amount that can be claimed varies according to how many hours per month you work. The figures are as follows:

• 25 to 50 hours per month: £10 per month
• 51 to 100 hours per month: £18 per month
• 101 hours or more per month: £26 per month

Two useful links for more information:

SIMPLIFIED EXPENSES 

Other allowable expenses
There are items it may surprise you can be regarded as allowable expenses. These include:

• Boxes of tissues
• Chairs and cushions
• Flowers, candles, essential oils and air fresheners
• Business card display holder
• Filing cabinet for secure storage of records

And some items you can claim for on a proportional basis:

• Curtains, rugs, pictures, table and table lamp

Counselling for you
No matter whether you are a counsellor yourself, receiving counselling is not normally regarded as an allowable expense because it is of benefit to you personally rather than wholly and exclusively for the business.

If you are studying counselling as part of relevant training then you should be able to claim it as an expense.

Once again, this is an area that involves some interpretation of the legal landscape, so if you do not feel absolutely certain of your position, get in touch with us and we can help you find your way through.