Osteopath invoice template

How do osteopaths usually invoice?

Osteopaths are paid per treatment on the day, with a longer new patient consultation at a higher fee and follow-ups at a lower one, and invoice health insurers monthly against an authorisation number. Treatment by an osteopath registered with the General Osteopathic Council is VAT exempt, so no VAT appears on treatment lines, while retail items such as pillows and supports are standard rated once the practice is registered. Receipts carry the GOsC registration number for cash plan claims.

Osteopaths in this example are paid on receipt. Hourly rates run from £50 to £95.

What should a osteopath put on an invoice?

Beyond the legal basics, osteopaths should:

• Quote your GOsC registration number on every receipt and invoice.
• Keep exempt treatment and standard rated products on separate lines.
• Use the insurer's authorisation number and fee schedule on insurer invoices.
• State session type and duration so the fee matches the published price list.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do osteopaths charge VAT?

Treatment whose main purpose is to protect, maintain or restore the patient's health is exempt from VAT when supplied by a professional on the relevant statutory register, so no VAT is charged and the invoice shows none. Exempt income does not count towards the £90,000 registration threshold, but sales of products and non-medical services do and are standard rated once you are registered. Exempt income is counted in flat rate scheme turnover, so the scheme is a poor fit for a mixed practice.

On the Flat Rate Scheme the sector for osteopaths is usually “Any other activity not listed elsewhere” at 12% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.