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Old 7th Aug 2022, 12:55
  #21 (permalink)  
OvertHawk
 
Join Date: Apr 2010
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Originally Posted by Lima Juliet
I’d be surprised if most barbers/hairdressers charged VAT anyway. They would need to exceed the £85,000 threshold to be required to register. Also, many are self-employed and rent a chair from the establishment they work in, which keeps their tax liabilities too.

So, unless you’re going to Nicky Clarke’s salon, then I suspect there is nothing to claim back!
When claiming tax relief on an expense - you're not claiming the VAT back.

You're claiming relief against your income tax for the amount that you pay.

So to use the example in question (legitimate or otherwise) - A ten pound haircut for a 40% taxpayer would mean a reduction in your taxable income by £10 resulting in you paying £4 less tax.

VAT has nothing to do with it (Unless you're VAT registered).
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