#ChopTheVAT Campaign Launches from British Beauty Council For the Hair Industry

The newly launched #ChopTheVAT campaign from British Beauty Council is asking the UK Government to cut the VAT for hair salons from 20 percent down to 5 percent, as they have done for the hospitality industry.

Hairdressers are down up to 80 percent in clients while still managing the huge overheads of running a bricks and mortar store. It's estimated 10 percent of salons have already closed following lockdown, and 43 percent of salon owners don't know if they will be able to survive the winter without financial help.

So here's the thing. In EU guidelines, the hairdressing industry CAN have its VAT cut from 20 percent down to 5 percent, but it hasn't happened. That extra 15 percent of cash in the hairdressers pocket is significant, especially as the salon sector survives on relatively small margins given the overheads. That extra 15 percent could potentially winter-proof some of our best-loved businesses.

Currently, EU law only lists Hairdressing as exempt from static VAT rules - the VAT rules say hairdressing VAT can be lowered (and it hasn’t even though it is undeniably one of the most hit industries). The rest of the beauty industry does not have the same flexible regulations and is not in this campaign being targeted.