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Going it alone, would I have to be VAT registered hair extensions

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i apologise in advance, as not sure if it makes sense what I’m asking😀
Im Currently employed in a salon doing hair extensions, love my job but the owner who I’ve always got on with, has her own personal issues which I feel sorry for but is now taking it out on us. it’s getting me really down hate the atmosphere and for a while I’ve thought about going it alone, as been told it before by clients and also other salons wanting be to work there on a self employed basis,

My worry is to become self employed is it that complicated, I great hands on but i struggled at school academically.

I looked at being self employed Ltd company seems very complicated, but my concern is VAT registered it seems like a whole load of hassle.

would I have to be VAT registered, as I currently fit extensions that cost the client circa around £500 sometimes more or less, but some clients pay £800 , fitting service varies from £65-£130 I just get paid a weekly wage

at our salon we normally do a consultation then take a deposit of £150 then the client pays remainder of hair cost and fitting once complete.

Iim just thinking surely all self employed hair extensionists can’t be vat registered,
but with the cost of decent hair the vat threshold would soon be reached, or is stock not classed as vat taxable income😩 I’m confused maybe im best just working for someone.

But some days she doesn’t turn up and I have to manage shop, and people say she taking a lend of me
 

Holistic Beauty

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Hi, you only need to register for VAT if your turnover is going to be over £85,000. I wouldnt register and have the hassle of it if not.
Also being a Ltd company is a lot more complicated than just being a sole trader. I would get advice from an account to what is best for your situation. X
 

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So can I ask does the actual cost of the hair extensions itself cost as turnover.???? As the cost for the actual hair could be in the region of Average £500 then the fitting cost say £120.

Wherei currently work they normally take 50% of hair cost then the remainder and fitting cost is charged after work complete

the boss orders the hair in

I would want as least hassle as possible, while I’m got at my job the accounting side is where I would struggle
 

Louisa.e

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So can I ask does the actual cost of the hair extensions itself cost as turnover.???? As the cost for the actual hair could be in the region of Average £500 then the fitting cost say £120.

Wherei currently work they normally take 50% of hair cost then the remainder and fitting cost is charged after work complete

the boss orders the hair in

I would want as least hassle as possible, while I’m got at my job the accounting side is where I would struggle
 

Louisa.e

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Hi there would the client be paying you for the hair extensions? If you are actually taking that £500 as part of the price it would push your yearly takings up to the £85.000 vat threshold quite quickly. Could the client pay for the hair herself maybe?
 

Holistic Beauty

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Turnover is the total amount of money you take before any deductions.

If the client brought the hair independently and just paid for you to fit them, then that would bring your turn over down but if you buy the hair extensions and its included in the the price, its that whole amount that is looked at for the £85000 threshold.
 

Starting out

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Turnover is the total amount of money you take before any deductions.

If the client brought the hair independently and just paid for you to fit them, then that would bring your turn over down but if you buy the hair extensions and its included in the the price, its that whole amount that is looked at for the £85000 threshold.
Yeah that’s what I thought, so Nearly all hair extentionists if they order hair in for client they will really need to be vat registered, just that if a client buys hair they won’t get the discount I would get,

so I would need to avoid buying the hair, thanks that’s explained that
 

Starting out

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Hi there would the client be paying you for the hair extensions? If you are actually taking that £500 as part of the price it would push your yearly takings up to the £85.000 vat threshold quite quickly. Could the client pay for the hair herself maybe?
Yes that would be best route, I just no where I work my boss then orders hair for client tbh worked in salon and never realised she must be vat registered
 

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