Do you have an accountant to discuss it with as this is a difficult area?
It will cost you money if you only exceed the threshold by a small amount. As you are dealing with the general public, you are unlikely to be able to incease your prices by 17.5% and normally hairdressers have relatively little input tax to reclaim.
Can you restructure the business by having chair rents, which may reduce your turnover but reduce your direct costs?
Otherwise if you have to register you probably need to plan to incre
ase your business by at least 15% just to stand still
It will cost you money if you only exceed the threshold by a small amount. As you are dealing with the general public, you are unlikely to be able to incease your prices by 17.5% and normally hairdressers have relatively little input tax to reclaim.
Can you restructure the business by having chair rents, which may reduce your turnover but reduce your direct costs?
Otherwise if you have to register you probably need to plan to incre
ase your business by at least 15% just to stand still
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Hello Big J
I am an accountant who specialises in hair salons.
Kent Accountant is quite right to suggest that you need to examine the rent-a-chair route. Other than ensuring that your turnover remains below the threshold you will need to look at a rent-a-chair approach to keep your turnover below the threshold.
The scheme has to be set up properly (and it is not as simple as just taking a percentage of the stylists turnover each week) if it is not to fall foul of VAT rules and leave you with a large VAT bill.
This is something that I would be able to assist you with. If you are interested and would like more information please PM me.
Regards.
David.
I am an accountant who specialises in hair salons.
Kent Accountant is quite right to suggest that you need to examine the rent-a-chair route. Other than ensuring that your turnover remains below the threshold you will need to look at a rent-a-chair approach to keep your turnover below the threshold.
The scheme has to be set up properly (and it is not as simple as just taking a percentage of the stylists turnover each week) if it is not to fall foul of VAT rules and leave you with a large VAT bill.
This is something that I would be able to assist you with. If you are interested and would like more information please PM me.
Regards.
David.
Upvote
0
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