Journey

Start a counselling or psychotherapy practice

Learning path for people starting a counselling or psychotherapy practice. Check what the law regulates, choose how to trade and where to see clients, insure the practice and agree terms with clients, protect client notes, check your position on criminal record checks, advertise and deal with VAT, and keep the practice compliant.

Healthcare & Social Care Starting a Business Updated 12 October 2026
7 milestones references 15 guides

What this journey is for

You do not need a licence to work as a counsellor or psychotherapist anywhere in the UK. Duties still apply from your first client, and they depend on your register, your client group and where you work. This journey takes you through them in the order you will meet them. The guides it points to hold the rules and the detail.

  1. Check what the law regulates

    The law does not protect the titles 'counsellor' or 'psychotherapist'. It protects the titles of practitioner psychologists and arts therapists, and only people on the Health and Care Professions Council register can use them. A care regulator applies if a doctor, nurse or other listed health professional provides or supervises treatment in your practice. Joining a voluntary register is your choice, so decide which one, if any, suits your training.

    Counsellor and psychotherapist registration rules

    Check which titles are protected, which voluntary registers exist and when a care regulator applies in your nation.

  2. Decide how you will trade and where you will see clients

    Your structure affects your tax, your liability and your paperwork. Your choice of room, at home, rented or online, affects your insurance and your data security. Settle these before you take your first booking.

    Sole trader or limited company

    Choose the structure that fits your plans for the practice.

    Register as self-employed with HMRC

    Register for Self Assessment once you have decided to trade as a sole trader.

    Running a business from home

    Check planning, home insurance and tax if you see clients at home.

  3. Insure the practice and agree terms with clients

    Sort your cover and your client agreement before your first session. Your agreement sets your fees, your cancellation terms and what clients can expect from you.

    Professional indemnity insurance for businesses

    Find out what professional indemnity cover protects against and how to choose it.

    Write consumer-friendly terms and conditions

    Draft a client agreement with fair fee and cancellation terms.

  4. Protect client notes

    Notes about a client's mental health are health data, and duties follow from that. You owe clients clear information about how you use their notes. You also pay a data protection fee if you keep any client details on a computer, phone or other device. Some laws override confidentiality, so know them before a client tells you something that triggers one.

    Client notes, confidentiality and disclosure for counsellors

    Lawful footing for notes, retention, client access, online security and the duties that override confidentiality.

    Pay the data protection fee

    Pay the fee that applies to a sole practitioner.

    Write a privacy notice

    Tell clients how you use their notes, including the retention period you set.

  5. Check your position on criminal record checks

    A register, agency or client may ask you for a criminal record check. Your client group decides which check you can apply for. Scotland and Northern Ireland use their own schemes, and in Scotland joining the PVG scheme is a legal requirement for a regulated role.

    Get a DBS check as a self-employed counsellor

    Work out whether your role is eligible and apply through an umbrella body.

  6. Advertise and deal with VAT

    The Advertising Standards Authority enforces the CAP Code on your website and social media. VAT depends on the register you are on, so check your position before your taxable turnover nears the registration threshold.

    Marketing and advertising law

    Check the rules for promoting your practice.

    VAT registration

    Check when you must register and what counts as taxable turnover.

    Keep business records as a sole trader

    Know which business records to keep and for how long.

  7. Keep the practice compliant

    Review your data protection duties every year. Come back to this step when you take on staff, because taking on staff adds employer duties, including insurance and PAYE.

    Data protection annual compliance checklist

    Review fee renewal, retention periods, client access requests and complaints handling each year.

    Register as an employer (PAYE)

    Register with HMRC when the practice grows beyond a sole practitioner.