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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4800
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We provide speech and language therapy to schools and colleges

Customer Question

We provide speech and language therapy to schools and colleges and to charities. Do we need to be VAT registered?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question. Occupational therapists are exempt from the VAT regime [see VAT Notice 701/57] providing you are enrolled or registered on the appropriate statutory register.
Registration is only needed it your zero rated, standard or reduced rated outputs exceed 81K in any one year; exempt supplies to not count towards the 81K.
I do hope I have pointed you in the right direction. Statutory registration for your profession is the key to this exempt status.
Customer: replied 3 years ago.

Thank you that was my reading but the vat helpline is saying that this exemption only applies to medical and they seem to be interpreting that in a very narrow way ie only if we are actually physically examining children - I have explained that Speech and language therapists and clinical psychologists (with whom I am also concerned) are a HCPC regulated profession and undertake assessments and examinations, the VAT people said to be exempt wee also need to be a charity or regulated by Govt body such as Ofsted - I am sure this is wrong!! What do I do?

Expert:  bigduckontax replied 3 years ago.
I would tell them bluntly that they are incorrect in their interpretation of the regulations and draw their attention to their own published guidance on the subject (VAT Notice 701/57). You may have to hammer away at this whilst the correspondence rises through the hierarchy of your VAT office until it reaches a higher graded official with a greater knowledge of the tax than is currently being displayed. In my experience lower grade tax officials tend to interpret the rules as they would like them to be rather than what they actually say. I would advise you only to deal with the tax authorities in writing on such a matter. With telephonic communication there is too much chance of misunderstanding and confusion.
You do not need to be a charity. Charity status is an add on which opens many more doors as you probably realised from your reading of the regulations.
I do hope I have been able to strengthen your resolve in this matter. Please be so kind as to rate me before you leave the Just Answer site.