Counselling Expenses

Hello, I have had mixed views on whether personal counselling can be used as an expense for counsellors (as it is a very emotionally demanding job and a lot is learn within therapy which is utilised in the job of counselling. As a member of the BACP we agree to tend top our self care. The BACP says ". Whether personal therapy is classified as a necessary wholly and exclusive business expense could be argued both ways. " This is not terribly helpful. Could you clarify whether personal therapy can be classed as an expense for counsellors and psychotherapists please.

Hi, not a HMRC Admin but there is a very clear answer to this scenario. Unfortunately, it isn't a favourable answer. https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37940

The advice you referred to highlights a worker who has ill health and sought tax relief on his cost of restoring his health. The scenario I am referring to is a counsellor who is not unwell but has sought counselling for personal development, something which is essential for every counsellor dealing with trauma and emotional development, it is essential for the counsellor to be developing emotionally and this is aided enormously by personal counseling and recommended by their professional body, the BACP. Most counsellors are currently claiming 50% of their personal counselling as self development expenses. I have been advised by my accountant that this is not possible so I feel it needs to be cleared up in black and white by the Inland Revenue if it is allowable or not.

Hi 

You cannot claim personal therapy as a business expense if you are a sole trader.
This is because it fails to meet the test of being 'Wholly and Exclusively' for their business as it is for their Personal use.  
BIM37007 - Wholly and exclusively: overview
sets out the definition of 'wholly and exclusively' which might give a better insight as to why it's not allowable. 

Thank you
 

Hi,

You cannot claim personal therapy as a business expense if you are a sole trader. This is because it fails to meet the test of being 'Wholly and Exclusively' for their business as it is for their Personal use.  

BIM37007 - Wholly and exclusively: overview

The above link sets out the definition of Wholly and exclusively which might give the customer a better insight as to why it's not allowable.

Thank you.