Stylists facing a VAT haircut

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Hairdressers and barbers across Sheffield are facing additional costs as a result of a new VAT ruling.

Robin Milnes, who runs TaxAssist Accountants in Sheffield, says a number of hairdressers have reduced their costs by renting out chairs in their salons, without being subject to VAT.

“From October 1, chair rentals are standard-rated for VAT and the ruling stretches to any clearly defined area in the salon used by stylists and to services related to hairdressing,” warns Mr Milnes.

“That includes booking appointments, laundering towels, cleaning up and making the tea. Salon stylists should check to see if the new ruling applies to them. As most will not be VAT registered, their chair rental will cost them an extra 20 per cent, because they cannot recover the VAT.”

Sheffield law firm Taylor&Emmet is staging its annual commercial property update on Thursday, November 8 at the Leopold Hotel in Sheffield.

The free breakfast seminar will focus on ‘rights of light’ and developments in case law during the last 12 months.

To reserve a place at the seminar, contact Claire Petty: (0114) 218 4000.