There would currently appear to be disputes over whether aesthetic treatments are purely cosmetic (and as such would be subject to a charge of 20%, the standard rate of VAT), or are a VAT free ‘medical’ treatment and this has recently been commented upon and factors decided in case-law. How does it affect you!!
Over recent years with the widespread prevalence of aesthetic or cosmetic treatments being seen in salons, homes and clinics everywhere, a grey area has arisen and is being flagged up by HMRC for investigation, for those whose turnover exceeds the VAT threshold of £85,000.
So what is the ‘black and white of it’ in HMRC’s eyes and what is the ‘grey area’ to be explored?
In August 2019 the case of Skin Rich Ltd v The Commissioners for Her Majesty’s Revenue and Customs added weight to HMRC’s views but also gave rise to questions.
Skin Rich Ltd was a skin and aesthetics clinic, employing registered medical professionals including both doctors and nurses, treating clients with a variety of procedures comprising amongst others the injection of Botox and fillers. No VAT had been charged across all their procedures. Does this relate to your business and what can you do?Share