Salon VAT Threshold Management | Build Your Salon

Salon VAT Threshold Management | Build Your Salon

From Build Your Salon with Phil Jackson by Build Your Salon with Phil Jackson

April 10, 2026 · 12 min

About this episode

Phil Jackson shares his experience with missing the VAT threshold and provides steps to manage it effectively.

Hitting £90,000 in turnover should be a huge celebration for your salon. For Phil Jackson, it nearly destroyed his business. He missed the VAT threshold for nine months, leading to a massive backdated bill for money he'd already spent. Don't let this happen to you. In this episode, Phil shares his costly mistake and gives you the exact steps to proactively manage your salon's VAT, avoid a surprise bill, and ensure your business grows profitably. ━━━━━━━━━━━━━━━━━━━━ 📊 MAIN CONTENT: THE ROLLING 12-MONTH VAT THRESHOLD • The £90,000 VAT threshold is NOT based on your tax year or company year end. • It's a rolling 12-month period: you must check your turnover for the previous 12 months *every single month*. • Once you cross £90,000, you have 30 days to notify HMRC. Registration kicks in from the first day of the second month after crossing. PHIL'S £10,000+ MISTAKE AND ITS CONSEQUENCES • Phil delegated, then abdicated, trusting his accountant to track the threshold. • He crossed the threshold but didn't know for nine whole months. • HMRC backdated his liability, demanding 20% of all revenue taken during those nine months. • The money came straight from his business reserves, cleaning…

People in this episode

Host: Phil Jackson

Topics covered

  • VAT management
  • business growth
  • financial mistakes
  • accounting
  • entrepreneurship

Keywords

  • VAT threshold
  • business turnover
  • accountant
  • HMRC
  • financial management

Mentioned in this episode

Organizations: HMRC

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