VAT Flat Rate Scheme Calculator for Hairdressing or other beauty treatment services
For salon owners, mobile hairdressers, freelance stylists chair-renting, beauty therapists, and aesthetic clinics registered for VAT.
Why this matters for hairdressing or other beauty treatment services
Hairdressing and beauty businesses pay 13% under FRS — break-even input VAT is 4.4% of net turnover. The big advantage over service-only sectors is that retail and salon-use products (shampoo, colour, treatments, nail products, equipment) are physical goods that count toward the LCT test.
A salon billing £90,000 net spending £6,000–£12,000 on stock and supplies clears the LCT goods test. FRS at 13% wins if input VAT stays under £3,960 (4.4% of net).
Limited Cost Trader trap
Low risk — usually escapesHair colour, shampoo, conditioners, treatments, retail product stock, scissors, dryers, gowns, towels — all goods that count toward the LCT 2% / £1,000 threshold. Most product-using salons clear it easily and get the genuine 13% rate, not the 16.5% LCT override.
Calculator (pre-selected for hairdressing or other beauty treatment services)
HMRC publishes 51 sector rates from 4% (food retail) to 14.5% (IT, accountancy, legal). Pick the one that best matches your main business activity.
Joining threshold: £150,000.
The 20% VAT on your business purchases (software, equipment, professional fees, stock). Leave blank or use 0 for service businesses with low purchases.
Goods only — excludes services, capital items, food/drink for staff, fuel (except transport sector). If this is below 2% of your gross turnover OR below £1,000/year, your rate becomes 16.5%.
Hairdressing or other beauty treatment services
16.5%
Industry base rate
13.0%
Limited Cost Trader
16.5% (override)
First-year discount
Not applied
Standard scheme — VAT to HMRC
£11,500.00
£12,000.00 output − £500.00 input
FRS — VAT to HMRC
£11,880.00
£72,000 gross × 16.5%
Annual difference
-£380.00
Standard pays HMRC less
Stay on the Standard scheme. You reclaim more input VAT than FRS would save you — switching would cost £380.00 per year.
Break-even: at input VAT of £120 (0.2% of net turnover), the two schemes pay HMRC the same. Below that, FRS wins; above, Standard wins.
Worked example: £60,000 net turnover
Output VAT charged
£12,000
£60,000 × 20% (what customers pay you in VAT)
FRS payable to HMRC
£9,360
£72,000 gross × 13.0%
Break-even input VAT
£2,640
4.4% of £60,000 net — below this, FRS wins
In your first year of VAT registration, the 1% discount drops your effective rate from 13.0% to 12.0%, raising the break-even threshold to 5.6% of net turnover. Use the calculator above with your actual turnover and input VAT figures.
Frequently asked questions
Does chair rent paid to me by self-employed stylists affect my FRS calculation?
Yes — chair rent is part of your VAT-able turnover if you charge VAT on it. It counts toward both the £150k joining threshold (excl VAT) and the £230k leaving threshold (incl VAT). The stylists themselves are separate VAT-registered persons if their own turnover is high enough.
I run mobile hairdressing only. Do I still get the 13% rate?
Yes — the 13% rate applies to the activity, not the premises. Mobile hairdressers, home-visits, and chair-renters all use the same 13% FRS rate. Just verify your goods spend (kit, products, consumables) clears the £1,000 LCT minimum given mobile workers often have leaner stock.
What is the FRS rate for hairdressing or other beauty treatment services?
HMRC publishes a flat rate of 13.0% for "Hairdressing or other beauty treatment services" under the VAT Flat Rate Scheme. In your first year of VAT registration, the 1% discount drops it to 12.0%. If your business is classed as a Limited Cost Trader (goods spend below 2% of VAT-inclusive turnover or below £1,000/year), the rate becomes 16.5% regardless of sector.
What is the break-even input VAT for hairdressing or other beauty treatment services on FRS?
At a 13.0% FRS rate, the Standard scheme pays HMRC the same as FRS when input VAT equals 4.4% of net turnover. Below that threshold, FRS pays HMRC less; above it, Standard wins. For a £60,000 net-turnover business, break-even input VAT is £2,640.