vat for salon owners

There has always been a lot of confusion around the VAT treatment within salons and this is now under the spotlight more now than ever since HMRC published guidance on employment status for tax for the hair and beauty industry. I will link to our article on this below but wanted to share the basic VAT guidance and points along with our downloadable guide.

The VAT registration threshold is £90,000. This means that business owners must register for VAT of their VAT taxable turnover exceeds £90,000.

The threshold is counted on a 12 month rolling basis and not based on total income for the tax year. This is a huge misunderstanding of VAT amongst small business owners.

If you are approaching the VAT threshold or would like support in reviewing the business VAT status you can contact us on hello@thebeautyaccountant.co.uk.

See also our handy guide below and blogs on Self employed status for tax.