The question, “Do hairdressers charge VAT in the UK?” is one that many salon owners, freelance stylists, and mobile hairdressers often ask. The answer depends not on the type of business but on turnover. Like all other UK businesses, hairdressers must follow HMRC’s VAT (Value Added Tax) rules, which are closely tied to income thresholds. Once a business grows beyond a set level, VAT registration becomes compulsory, and this has direct consequences for pricing, profit margins, and customer perception.
This article provides a detailed explanation of VAT requirements for hairdressers. It covers the registration threshold, rules for different business models, exemptions, the standard VAT rate, and the practical effects on the hairdressing industry. It also highlights how Apex Accountants can help hairdressers manage VAT effectively.
The VAT registration threshold is the first factor to consider. For 2026/27, the VAT registration threshold remains £90,000 in taxable turnover. This means that if a hairdresser, salon, or barber shop has taxable turnover of more than £90,000 in any rolling 12-month period, they must register for VAT with HMRC.
It is important to note that this is a rolling 12-month period, not a tax-year test. Businesses should review their taxable turnover regularly. Compulsory VAT registration applies once taxable turnover for the previous 12 months goes over £90,000. A business must normally register within 30 days of the end of the month in which it exceeded the threshold.
On the other hand, if turnover later drops below £88,000, a hairdresser may apply for deregistration. This flexibility helps businesses that experience seasonal fluctuations or temporary drops in revenue. However, many businesses in the sector deliberately remain under the threshold to avoid the administrative burden and financial implications of VAT.
A salon taking £7,500 per month would have a taxable turnover of exactly £90,000 after 12 months. That alone does not exceed the VAT registration threshold. However, if its rolling 12-month taxable turnover rises above £90,000, it must register for VAT. For example, if turnover reaches £90,500, the business must normally register within 30 days of the end of the month in which it exceeded the threshold.
The obligation to charge VAT does not depend on the type of business. Whether someone is a self-employed stylist, a salon owner, or a mobile hairdresser, the same rule applies: once the threshold is exceeded, VAT registration is compulsory and VAT must be charged.
Employees working in salons never charge VAT personally. Instead, the salon or company they work for is responsible for VAT registration and collection.
There are no sector-specific VAT exemptions for hairdressers. In other words, there is no special rule that removes hairdressers from the VAT system. All standard services, such as cutting, colouring, and styling, are taxable at the standard rate.
Businesses whose taxable turnover remains below the £90,000 registration threshold are not normally required to register for VAT. This is a registration threshold rather than a VAT exemption. Hairdressers who are not VAT-registered do not charge VAT on their taxable services and cannot reclaim input VAT on business costs. Some choose to register voluntarily to reclaim VAT on eligible expenses. Once registered, they must account for VAT on their taxable services and sales.
Hairdressing services are subject to the standard VAT rate of 20%. Unlike some sectors, such as hospitality, which temporarily benefited from a reduced VAT rate during COVID-19, hairdressers have always remained at the standard rate.
For example, a £50 haircut advertised before VAT becomes £60 once VAT is added. Many salons therefore prefer to display VAT-inclusive prices to avoid confusing clients. While customers of VAT-registered businesses pay more, customers of smaller, unregistered salons or mobile hairdressers do not pay VAT on top of quoted prices.
Some salons use HMRC’s Flat Rate Scheme. Under the scheme, a hairdressing business still charges the normal VAT rate to customers but calculates the amount it pays to HMRC using a flat-rate percentage. The Flat Rate Scheme percentage for hairdressing and other beauty treatment services is 13%, although businesses classed as limited-cost businesses may have to use the higher 16.5% rate. The scheme can simplify VAT accounting, though it may not suit every business.
VAT for hairdressers has a significant impact on pricing. Once registered, a hairdresser has two main choices:
Because hairdressing is labour-intensive, salons may have fewer VAT-bearing costs to reclaim than some other businesses. Wages do not carry VAT, while chair rental supplied by a VAT-registered salon is generally taxable. The amount of input VAT a salon can reclaim will therefore depend on its particular costs and business arrangements.
This pressure has led to calls within the industry for a reduced VAT rate, but hairdressing services continue to be subject to the standard VAT rate in 2026/27.
Smaller operators below the threshold do not charge VAT, which is why many remain outside the VAT system. Larger salons and growing freelancers, however, must register and adjust their pricing strategies accordingly.
For many in the hair and beauty industry, VAT is one of the most difficult financial challenges. At Apex Accountants, we work closely with salon owners, freelance stylists, and mobile hairdressers to make VAT management simpler and less stressful.
Our VAT services for hairdressers include:
By partnering with Apex Accountants, hairdressers can focus on delivering great service to clients while we take care of VAT, compliance, and financial strategy.
Book a free consultation with Apex Accountants today and let us help your hairdressing business grow with confidence.
Hairdressing services in the UK are taxed at the standard VAT rate of 20%. This applies to all haircuts, styling, colouring, and similar services once a business is VAT-registered.
Yes. Most beauty products, such as shampoos, conditioners, hair dyes, and cosmetics, are subject to the standard VAT rate of 20%. Only a few items, like certain health-related products, may fall under reduced or zero rates.
Self-employed hairdressers only need to register for VAT if their taxable turnover exceeds £90,000 in any rolling 12-month period. Below this threshold, they are not required to charge VAT, although voluntary registration is allowed.
Chair rental is generally a taxable supply. If a VAT-registered salon rents chair space to a self-employed stylist, the salon normally charges VAT on that rental income. Chair-rental income also contributes to the salon’s taxable turnover when determining whether it needs to register for VAT.
Yes. Self-employed hairdressers must submit a self-assessment tax return each year and pay income tax and national insurance on their profits. VAT is separate and only applies if they cross the registration threshold.
A beauty salon must register for VAT once its taxable turnover exceeds £90,000 in a rolling 12-month period. If it remains below the threshold, registration is not required. Some salons choose to register voluntarily to reclaim VAT on expenses.
For 2026/27, the VAT registration threshold remains £90,000. Businesses whose taxable turnover goes over this amount in a rolling 12-month period must register with HMRC. The VAT deregistration threshold remains £88,000.
Yes, once registered. Hairdressers who cross the VAT threshold must add 20% VAT to all their services. Those below the threshold do not charge VAT to customers.
Yes. All standard beauty treatments, such as facials, manicures, and waxing, are taxed at the 20% VAT rate when the salon or beautician is VAT-registered.
No. The UK does not use GST (Goods and Services Tax). Hairdressing services in the UK are covered under VAT, with the standard rate of 20% applying to all taxable services.
No. While many goods and services, including hairdressing and beauty, are taxed at 20%, some items fall under reduced rates (5%) or are zero-rated. For hairdressers, however, services and most products are charged at the standard 20% rate.
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