Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether he has made an assessment of the effect of the VAT registration threshold on hair salon owners; and if he will make a statement.

No specific assessment has been made of the effect of the VAT registration threshold on hair salon owners.

At Autumn Statement 2016, the Office of Tax Simplification (OTS) was asked to conduct a VAT General Simplification Review. The OTS’s interim report, which was published on 28 February 2017, highlights eight areas that it will be looking at in more detail, including the level of the VAT registration threshold. Its recommendations will be published in autumn 2017. To support the review, the OTS has issued a call for evidence, including asking for feedback from businesses and their representatives.

The UK’s VAT registration threshold (above which persons making taxable supplies are required to register and account for VAT) is currently set at £83,000, although businesses below this threshold can opt to register voluntarily if it suits them to do so.