Quote:
Originally Posted by rowdy
Personally, I don't really know the workings of it, but my wifes business is a hairdressers, so unless she increases prices every time there is a VAT increase she will feel the difference, and two fold as well as she is paying higher prices for the stock that she buys.
Edit; She has only just put the price up recently to cover the last VAT increase.
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She should be claiming back the VAT on expenses and there are ways to ensure that your wife can keep prices the same by cutting on overheads. Just have to get savvy for a while. Now is the time to reassess all the suppliers, shop around for alternatives that will offer a better deal.
Find a USP (Unique Selling Point) for the Salon. Come up with some new offers for clients.
Your wife could look into studying part time (some tax relief may come from that too) and start producing her own products for the salon and even selling them externally.
Sounds crazy, but an ex marine that Dan knows was stationed out on an oil rig after leaving the forces I think. He was bored, so did an OU degree in chemistry and when he got home, started producing hair products in his conservatory. He's now a millionnaire and his products are sold in Harrods and all over America.
Where there's a will, there's a way.