CT600 for Physiotherapists: A Corporation Tax Guide
Running a physiotherapy practice through a limited company means filing a company tax return — the CT600 — with HMRC each year. Whether you run a clinic, work as a locum physiotherapist, or combine private practice with NHS work, this guide covers the tax treatment of common physiotherapy expenses and how to calculate your corporation tax bill.
Who Needs to File a CT600?
If your physiotherapy practice operates as a limited company, you must file a CT600 with HMRC within 12 months of your company's accounting period end. This applies whether your company is:
- A sole physiotherapy practice incorporated as a limited company
- A multi-therapist clinic operating as a company
- A holding company that employs physiotherapists
- A locum physiotherapist who operates through a personal service company (PSC)
Corporation Tax Rates for Physiotherapy Companies
Corporation tax rates depend on your company's taxable profits in the accounting period:
- Small profits rate (19%): applies when profits are £50,000 or less
- Main rate (25%): applies when profits exceed £250,000
- Marginal relief: available when profits fall between £50,000 and £250,000
For most physiotherapy practices incorporated as small businesses, the 19% small profits rate applies. A solo physiotherapist trading through a limited company with profits in the £50,000–£250,000 range would benefit from marginal relief, paying an effective rate between 19% and 25%. Read our guide to marginal relief for the full calculation.
Deductible Expenses for Physiotherapists
The key to reducing your corporation tax bill is claiming all allowable business expenses. For physiotherapy companies, these typically include:
Professional Registration and Memberships
- HCPC registration fees — Health and Care Professions Council registration is required to practise as a physiotherapist and is fully deductible
- CSP membership — Chartered Society of Physiotherapy membership fees are deductible as a professional subscription
- Specialist group memberships — ACPIVR, MACP, and other specialist section fees are also deductible
Clinical Equipment and Supplies
- Treatment beds and couches
- Ultrasound and electrotherapy machines
- Rehabilitation equipment (resistance bands, balance boards, gym equipment)
- Consumables (gel, tape, disposable covers)
- Diagnostic tools (goniometers, dynamometers)
Premises and Facilities
- Clinic rental or lease costs
- Business rates for a commercial premises
- Utilities, cleaning, and maintenance of clinic spaces
- Meeting room hire for patient consultations
- A proportion of home office costs if you regularly work from home (subject to HMRC rules on exclusive business use)
Professional Indemnity Insurance
Professional indemnity insurance is a business necessity for physiotherapists and is fully deductible. Public liability insurance is similarly deductible. Most physiotherapy companies are required to hold PI insurance as a condition of HCPC registration.
Continuing Professional Development (CPD)
The HCPC requires physiotherapists to maintain their competence through ongoing CPD. The costs of CPD are deductible, including:
- Conference and seminar fees
- Online courses and subscriptions
- Course materials and textbooks
- Reasonable travel to training events
Software and Administration
- Practice management software (Cliniko, Jane, or similar)
- Accounting software
- Online booking systems
- Website hosting and development
Motor and Travel
If you travel between clinic locations or visit patients at home, those travel costs are deductible. The company can reimburse travel at HMRC's approved mileage rates for personally-owned vehicles. Travel from your home to your regular place of work is not deductible.
Capital Allowances for Physiotherapy Equipment
When your physiotherapy company purchases equipment, you may be able to claim the Annual Investment Allowance (AIA), which gives 100% tax relief in the year of purchase. This is often more favourable than spreading the cost over several years via a writing down allowance.
AIA covers most plant and machinery, including:
- Ultrasound and electrotherapy equipment
- Treatment tables and specialist chairs
- Computer equipment
- Gym and rehabilitation equipment used in the business
IR35 and Locum Physiotherapists
Many physiotherapists work on a locum or contract basis, providing services to NHS trusts, private hospitals, or other clinics. If you operate through a personal service company (PSC), IR35 off-payroll working rules may apply.
Under IR35, if HMRC determines that — absent the intermediary company — you would be an employee of the end client, the income is treated as employment income and taxed accordingly. Since April 2021, medium and large private sector clients are responsible for making employment status determinations.
What this means in practice:
- Many NHS trusts treat locum physiotherapists as inside IR35
- Income deemed inside IR35 is taxed under PAYE before reaching your company
- This limits the tax efficiency of operating through a limited company for that income stream
- Some physiotherapists maintain their company for private practice income while locum work is processed under IR35 by the end client
Corporation Tax Losses
If your physiotherapy company makes a loss in a financial year — perhaps during a period of reduced patient numbers, maternity leave, or business disruption — you may carry that loss forward to reduce future profits, or carry it back to generate a tax repayment. See our guide to corporation tax losses for how losses are reported on the CT600.
Common CT600 Questions for Physiotherapists
Can I deduct my own salary from company profits?
Yes. Your salary, processed through PAYE, is a deductible company expense. National Insurance contributions paid by the company on your salary are also deductible. Most owner-directors take a combination of salary and dividends to optimise their overall tax position.
Are dividends deductible?
No. Dividends are paid from post-tax profits. They do not reduce your corporation tax bill.
Can I deduct home-to-clinic travel?
Not as a general rule. Travel from your home to your regular workplace is not deductible. Travel between clinic locations during the working day is deductible.
What records do I need?
HMRC requires records to be kept for 6 years from the end of the accounting period. For a physiotherapy company, retain: invoices, receipts, bank statements, PAYE records, mileage logs, and evidence supporting any apportionment between business and personal use.
Filing Your CT600
Your company tax return is due 12 months after the end of your accounting period. Corporation tax itself must be paid 9 months and one day after the period end — before the return is due. Late filing attracts penalties starting at £100 for returns filed within 3 months of the deadline.
For a step-by-step walkthrough of the filing process, see our guide to filing a company tax return.
Summary
Physiotherapy companies can claim a wide range of deductible expenses — from HCPC registration and CPD to clinical equipment and practice management software. Capital allowances can significantly reduce taxable profits in years when you invest in new equipment. For most small practices, corporation tax is charged at 19%, though marginal relief applies as profits grow. Accurate record-keeping and claiming all allowable deductions ensures your CT600 reflects the true taxable profit of your practice.