VAT on Beauty Treatments

[Lucy-Jayne]

This may sound like a silly question, but I'm trying to work out whether or not it would be worth being VAT registered when I take over my new salon.

I'm thinking yes for the purposes of claiming back all that I've spent and the fact that my purchases going forward should be more that what I retail.

But my question is: Is VAT charged on beauty treatments?

I can't find any indications on HM website or Business Link. Will phone them tomorrow but just looking for a heads up!

Thanks

 

[weezie]

You have to become VAT registered when your business is making over £60,000 and this would have to be added into your treatment costs with your pricing structure. This link may help:

VAT Registration and how to register for VAT with HM Revenue and Customs

Not sure this is what you are asking though?

Definitely better to call them up x

 

[Lucy-Jayne]

Thanks for that - I've got the number ready for Monday morning. I know how to work everything out, it's just that one questions are beauty treatments VATable?

Before I took it over, it wasn't. I have a sneaky feeling the current owner has been keeping it under so that he didn't have to pay. So all of his accounts are under the threshold.

You can become voluntarily registered. Which I was thinking of. But obviously I won't if I'm going to be out of pocket.

If Beauty Treatments are VAT registered then I'm likely to be out of pocket unless I put all treatments up to reflect this.

 

[Jen Smith]

Beauty service treatments are Vatable. 17.5% of the treatment cost goes back to the IR. :cry:

Quarterly VAT returns are a pain the rear too.. so if you don't need to register, I would seriously think hard about volunteer registration (which you can do now at £49K annual turn over iirc.

Good luck with your new salon :hug:

 

[Lucy-Jayne]

Beauty service treatments are Vatable. 17.5% of the treatment cost goes back to the IR. :cry:

Quarterly VAT returns are a pain the rear too.. so if you don't need to register, I would seriously think hard about volunteer registration (which you can do now at £49K annual turn over iirc.

Good luck with your new salon :hug:

Thanks so much Nail FX - that really helps. I thought it would be worth it to claim back all of the VAT paid, clearly I'm wrong! For some stupid reason I thought treatments weren't vatable. I'm going to have to have a serious think with my other half!

 

[Sharkster]

Before I took it over, it wasn't. I have a sneaky feeling the current owner has been keeping it under so that he didn't have to pay. So all of his accounts are under the threshold.
quote]

Hi there,

Just wondering how the current owner was 'keeping it under' the £60k VAT threshold as this is determined on turnover? Was he turning clients away just to avoid being VAT registered? Makes no sense to me?

Personally, I wouldn't volunteer for VAT registration until I hit the £60k. Yes you could claim back the VAT that you pay but your accountant fees would increase (unless you able to do your VAT returnes yourself).

Good luck with whatever you choose!