Hair salons are being reminded that renting chairs to a hairdresser will not be VAT exempt as of October 1st 2012 under measures announced by HM Revenue & Customs (HMRC).
Until now, there had been some confusion about whether salons and similar businesses should pay VAT when they charge for renting out chairs in their business. But now HMRC is making it explicitly clear that chair rental is taxable at the standard rate of VAT, meaning those who do not do so already will have to act.
The announcement is part of the department’s ongoing campaign to close loopholes and anomalies in the system, making it clearer and fairer for all.
To find out more or to speak to your local tax office, visit HMRC’s website, www.hmrc.gov.uk
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