How to Start a Private Psychology or Therapy Practice in the UK

Private psychology and therapy practices are thriving in the UK, driven by growing awareness of mental health and long NHS waiting lists. Whether you are a clinical psychologist, counselling psychologist, counsellor, or psychotherapist, this guide covers the business side of private practice.

Registration and Titles

Protected Titles

Practitioner psychologist titles are protected by law. To use titles such as clinical psychologist, counselling psychologist, forensic psychologist, or health psychologist, you must be registered with the HCPC. Annual registration is around £106.

Voluntary Registration

For counsellors and psychotherapists, registration is voluntary but strongly recommended:

• BACP (British Association for Counselling and Psychotherapy) — the largest UK body
• UKCP (UK Council for Psychotherapy)
• BPC (British Psychoanalytic Council)
• NCS (National Counselling Society)

Accreditation with these bodies demonstrates competence and is required by most insurance panels and referral platforms.

Sole Trader or Limited Company?

Most therapists start as sole traders. Simple, low-cost, and appropriate for the income levels of a new practice. A limited company may be considered as income grows.

Registering with HMRC

Register for Self Assessment within three months. VAT: services provided by HCPC-registered psychologists are exempt from VAT. For counsellors and psychotherapists registered with recognised bodies, VAT exemption may also apply — take advice on your specific registration status.

Insurance

• Professional indemnity and malpractice — essential. Many professional bodies include insurance with membership.
• Public liability — for clinic premises
• Employers' liability — if you hire staff
• Contents — clinical equipment, books, assessment tools

BACP and UKCP membership often include insurance. Otherwise, expect £200–£600 per year.

Claimable Expenses

• HCPC registration (psychologists) or professional body membership (therapists)
• Clinical supervision — mandatory for most therapists and a significant ongoing cost
• Clinic room hire — often your largest expense
• Assessment tools — psychometric tests, questionnaires, scoring materials
• CPD and training — specialist courses, workshops, conferences
• Personal therapy — if required by your professional body for training or maintenance
• Marketing — website, professional directories, counselling directories
• Software — clinical notes, secure messaging, video consultation platforms
• Home office costs — for admin (not usually for client sessions from home unless specifically set up)
• Reference materials — textbooks, journals, supervision resources
• Travel — to clinic, supervision, training
• Phone and broadband
• Insurance premiums
• Accountancy fees

Accounted tracks all your expenses automatically.

Pricing

• Individual therapy (50 min) — £50–£120 (outside London), £80–£200 (London)
• Couples therapy — £70–£150
• Clinical psychology assessment — £300–£1,500+
• Medico-legal reports — £500–£3,000+
• EMDR/specialist sessions — £80–£150
• Group therapy — £25–£50 per person

Many therapists offer a sliding scale for lower-income clients.

Building Your Practice

• Counselling directories — BACP Find a Therapist, Psychology Today, Counselling Directory
• GP and NHS referrals — build relationships with local practices
• Insurance panels — BUPA, AXA, Aviva, Vitality
• Online presence — professional website with clear information about your approach
• Employee Assistance Programme (EAP) panels — provide therapy for corporate clients
• Supervision groups — networking with other therapists generates referrals
• Specialist niches — anxiety, trauma, couples, children — specialisation helps referrals

Industry-Specific Tax Tips

Supervision Costs

Clinical supervision is a significant and fully deductible expense. Whether individual or group, keep records of all supervision payments.

Assessment Tool Licences

Psychometric test licences and scoring credits are deductible. Some are annual subscriptions, others per-use.

Room Hire

If you rent by the hour or day, track every booking. If you have a regular lease, it is a fixed monthly expense. Either way, it is fully deductible.

Bookkeeping Tips

• Separate business and personal finances
• Track client sessions and income
• Record supervision and CPD costs
• Monitor room hire costs
• Set aside 25–30% of profits for tax

Accounted connects to your bank and categorises transactions with AI.

Key Deadlines

• 31 January — Self Assessment and payment
• 31 July — second payment on account
• Every 2 years — HCPC renewal (psychologists)
• Annually — professional body renewal, insurance, CPD records

Getting Started

Private practice offers professional autonomy and the opportunity to make a real difference. Ensure your registration and supervision are in place, arrange proper insurance, and keep your finances well-managed.

Ready to take care of your practice finances? Sign up for Accounted and let Penny handle the bookkeeping while you focus on your clients' wellbeing.