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Where Taxpayers and Advisers Meet

Help! Ltd Co - Is counselling/therapy an allowable expense?

TrishaNewton
Posts:3
Joined:Fri Jun 16, 2017 1:27 pm
Help! Ltd Co - Is counselling/therapy an allowable expense?

Postby TrishaNewton » Fri Jun 16, 2017 1:36 pm

Hi all, this is my first time posting in this forum.

I am a contractor who pays tax via a limited company. I am the director of the company.

Due to some life stresses I forewent a series of therapy sessions which in total cost around £4k.

Can some one please tell me if these expenses are allowable? The information on HMRC website is very vague. Although HMRC state that the exemption covers all types of counselling as long as it fits in my case stress which is does.

Would really appreciate your opinions on this!

Many thanks

Trish

I have searched on HMRC's website and it says the following;

https://www.gov.uk/expenses-and-benefits-counselling


Expenses and benefits: counselling for employees
As an employer, you don’t have any tax, National Insurance or reporting obligations if you provide welfare counselling services for your employees.
The counselling service must be:

for welfare issues, such as bereavement, ill health or stress, problems at work, sexual abuse or personal relationship difficulties
available to all your employees
The counselling service can’t offer:

tax advice
legal advice
financial advice on any matter other than debt problems
advice relating to leisure or recreation
medical treatment
Technical guidance
Read more detailed information on exemption for welfare counselling.


In addition there is -

https://www.gov.uk/hmrc-internal-manual ... l/eim21845

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Help! Ltd Co - Is counselling/therapy an allowable expense?

Postby bd6759 » Fri Jun 16, 2017 4:54 pm

The exemption applies to employers who provide welfare counselling services to their employees. It means that employees will not be caught by the general provision that would otherwise tax the cost of the service as a benefit.

First, the provision has to be made by the employer. That means the employer is responsible for providing the service. If you arranged it yourself it is a personal cost and nothing to do with your employer. There is no provision to allow an employee to claim tax relief on such costs that they incur.

Second, the exemption does not cover medical treatment of any kind (my highlight). Therapy suggests treatment that goes beyond counselling.

TrishaNewton
Posts:3
Joined:Fri Jun 16, 2017 1:27 pm

Re: Help! Ltd Co - Is counselling/therapy an allowable expense?

Postby TrishaNewton » Sat Jun 17, 2017 2:23 pm

Thanks so much for a quick response bd6759 - will take on board your comments!

Once again thank you! It was really appreciated!

Trish


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