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Taxes included in your bill
Are you aware how much of your payments to golds for services and products goes in taxes?
For every pound (£) you spend in golds the following taxes are payable by golds (staff and company)
VAT @ 20% |
16.7 pence |
Business Rates |
3.6 pence |
PAYE / National Insurance |
14.9 pence |
Corporation Tax |
1.2 pence |
Council Bin Collections |
0.1 pence |
Taxes included in suppliers invoices |
2.0 pence (minimum) |
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TOTAL |
38.5 pence |
So, for every pound you are paying 38.5 pence in taxes.
This means that on a ladies Cut and Blow dry costing say £35.00 you are paying £13.48 in taxes. This is out of your income which has been already been taxed at around 30%.
Taxes hit hair salons particularly hard as we are labour intensive. This makes our effective VAT rate and payroll taxes higher than for most other businesses. |