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UK Tribunal Rules Self-Employed Hairdresser Not Liable for VAT Registration Under Rent-a-Chair Model

  • The First-Tier Tax Tribunal clarified VAT registration obligations for self-employed individuals.
  • A self-employed hairdresser was wrongly required to register for VAT after adopting a rent-a-chair model.
  • The Tax Agency incorrectly included another stylist’s income in the taxpayer’s turnover for VAT purposes.
  • The Tribunal found the income tax inquiry was closed without adjustment and the VAT registration decision was incorrect.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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