HMRC has confirmed that chair rentals within hairdresser/barber businesses will be subject to VAT at the standard rate of 20% from October 2012.
The new ruling will include a chair with certain right of access, in a defined area of a room or premises, and/or including related hairdressing services.
This ruling also includes services provided by any assistants, the booking of appointments and laundry services.
Currently most hairdressers are sole traders and are not VAT registered and therefore this could increased their costs by 20% as they cannot recover the VAT.
Advice should be sought by traders to understand the implications of these new rulings.
Tax services for individuals and small businesses in the UK and Europe. Specialist areas include: Contractor Ltd companies, Small business tax, UK Self-assessment, Partnerships, Seafarers Tax, Norwegian Tax, Irish Tax, Dutch Tax, US Tax returns.
No comments:
Post a Comment