Sole trader VAT threshold

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Chandra

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I am near to the threshold for paying VAT as a sole trader. I provide professional services. I would like to expand and earn more money but, the VAT issue is discouraging me. Would it be better to set up a LTD Company? Or would the annual costs be too much for this purpose. Please advise.
 
Who do you provide professional services to? If they're VAT registered, charging them VAT won't be a cost to them.
 
I provide counselling services to individuals who are not VAT registered.
I believe providing services to educational institutions for example, is VAT exempt. Are there other ways to avoid getting into the VAT bracket?
 
Chandra said:
I provide counselling services to individuals who are not VAT registered.
I believe providing services to educational institutions for example, is VAT exempt. Are there other ways to avoid getting into the VAT bracket?
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Health and social care professionals are exempt from charging vat.
 
AJ1 said:
Health and social care professionals are exempt from charging vat.
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'Professional' is the key word here. Anyone registered with the Counsellors and Psychotherapists Registration Board is VAT exempt. If not registered, not exempt.
 
RedOnion said:
'Professional' is the key word here. Anyone registered with the Counsellors and Psychotherapists Registration Board is VAT exempt. If not registered, not exempt.
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Yes I'm not sure what the OPs qualification is or who their professional body is. I'm a chartered educational psychologist with PSI and we are exempt.
 
Hi,
Thanks for your helpful responses and information. I am a psychotherapist accredited with UKCP and a member of ICP. CORU as far as I am aware have not opened the register for the Counsellors and Psychotherapist’ Registration board. Is there anyone who knows of a psychotherapist in private practice who is exempt from VAT due to being a health or social care professional? I will also check it out with Revenue now that I have this information.
 
Consider keeping your threshold below the VAT threshold, which by the way is ridiculously low in comparison to other economies and hasn't been adjusted for inflation in decades.
 
Yes very wise. It’s true…colleagues doing the same job as me in London can earn up to €85000.
 
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