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UK VAT Threshold Calculator

How close is your salon to the £90,000 VAT line?

Turnover creeps up quietly when the rooms keep filling. This works out where you stand against the registration threshold, and what crossing it actually does to your numbers.

Why this matters for a salon

Add a therapist, fill another table, get busier on Saturdays, and your turnover climbs without anyone deciding it should. There is no headline moment. It just adds up.

HMRC counts your turnover on a rolling 12-month basis, not your tax year. Plenty of established owners cross the line months before they notice, then face a back-dated registration and a VAT bill they had not planned for.

Knowing how much headroom you have lets you decide on your terms: hold steady, raise prices ahead of time, or register early and plan for it. Caught out is the expensive option.

Work out your position

Enter your turnover and the numbers update as you type. Nothing is sent anywhere.

£
Total takings before costs. Choose monthly or annual below.
Add growth detail to project when you'll cross (optional)

Give a rough recent growth rate, or last year's turnover, and we will sketch when you reach £90,000. Simple straight-line maths, shown in full below.

%
How much you are up year on year.
£
Annual figure for the year before.

What happens when you cross £90,000

  • 1
    You must register for VAT. Once your rolling 12-month turnover passes £90,000 you have 30 days to register with HMRC. Miss it and registration is back-dated, with penalties.
  • 2
    You charge 20% VAT on your services. Standard-rate VAT applies to most salon, spa and massage treatments. That 20% is HMRC's, not yours, so you hand it over each quarter.
  • 3
    The margin cliff, the VAT trap. Most of your clients are private individuals who cannot reclaim VAT. So you either raise prices 20% and risk losing bookings, or absorb the VAT out of your own margin. Crossing the line can cost you money unless you plan the price change in advance.

This is general guidance to help you plan, not tax advice. Your exact position depends on your services, exemptions and circumstances. Check with an accountant or HMRC before you act.

Get the one-page VAT survival guide for salon owners

How to spot the line coming, the price-change options that hold your margin, and what to have ready before you register. Plain English, one page. The guide opens straight away.

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