Nothing makes me more excited than a good story about VAT.
So last Wednesday started brilliantly when I picked the paper up from the front door to find VAT had made the front page of The Times, with a story about its application for bald women.
Now, you may remember last year that there was a case about hair transplants for men, and it was decided that VAT must be applied to these because they are cosmetic, not medical. And this was costing one Harley Street clinic £2.5 million of VAT.
But last week it was decided that hair treatments, including wigs, for bald women are not subject to VAT because it can be seen as a disability, as baldness for women has a far greater impact than it does for men.
HMRC originally said that baldness should be viewed as cosmetic because, if it’s considered a disability, then they would soon be having to deem any other physical appearance issues as a disability too. They used the example of freckles to show that there would be claims for VAT exemptions for almost anything.
However, the court concluded that severe hair loss in women does constitute an impairment adversely affecting the ability to carry out everyday activities, and therefore there should be no VAT on the hair treatment and wigs.
Now, this is an odd case, but it just shows once again how complex VAT can be and how many funny little rules there are. Who can forget the Jaffa Cakes case…or big marshmallows…or Spot the Ball?
There was also a story a few pages into my paper a couple of days later about VAT on repairing churches, and how this is changing this year.
The point I’m making here is that there are so many complexities and loopholes, it’s always worth speaking to an expert.
And if you speak to me, you’ll meet a man with a full head of hair on Zoom…but if you come round the back, you might find there’s a little bit missing. (The “nude” bit, as my daughter called it.)
If you have any questions, please email su*****@*********************co.uk or give us a ring on 0151 380 8084.
Many thanks
Jon