Petition Reduce VAT to 5% for the Hair & Beauty Industry inline with Hospitality.
The Hair and Beauty industry was closed inline with hospitality. Hospitality are receiving a benefit as a result of being closed due to COVID however the Hair & Beauty industry was effected the same but received no benefit, in return the Hair & Beauty industry are now operating at 50% capacity.
Reduce VAT to 5% for the Hair and Beauty industry inline with hospitality. Hospitality VAT rate has been reduced to 5% for the period 15 July 2020 to 12 January 2021. Reducing VAT to 5% for the Hair & Beauty industry only seems fair considering they were closed for the same amount of time furthermore it will help the VAT registered salons through this crises and will allow them to continue operating after and will help them continue making their contributions in the future.
This response was given on 20 November 2020
The Government has announced a significant support package to help businesses affected by Covid-19. While there are no plans to extend the scope of the reduced rate, we keep all taxes under review.
To support the cash flow of over 150,000 businesses and to protect 2.4 million jobs, the Government has applied a temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors. Hospitality includes the supply of food and non-alcoholic beverages from restaurants, cafes and pubs. It also includes the supply of hot food and non-alcoholic hot beverages to take away. This relief came into effect on 15 July 2020 and will end on 31 March 2021, and applies across the UK. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.
In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates. The Government deferred VAT payments, so UK VAT-registered businesses did not need to pay any VAT due with VAT returns from 20 March through to the end of June 2020, before the end of March 2021. In September 2020, the Government announced the VAT Deferral New Payment Scheme to give businesses who want it, extra time to pay VAT they deferred.
The Government has also announced a targeted package of measures, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the government-backed loan schemes. These apply to any business in any part of the UK.
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