Hairdressing VAT rules updated

From 1 October 2012 the rules surrounding the tax liability of chair rentals in hairdressing salons will be updated as HMRC moves to ensure salons and barbers correctly identify the rental as being exempt or standard rated for VAT purposes.

Chair rentals can broadly be categorised as providing a chair with rights of access, or a clearly defined area, to a hairdresser, barber, or stylist  alongside “services related to hairdressing”.  Such an area may take the form of a separate room within a salon, or be something as wide ranging as a floor of a building.

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