A Nottinghamshire business owner has highlighted the 'urgency' of VAT reduction for the hair and beauty industry to prevent the loss of jobs and retail outlets. Collette Osborne owns two hair salons in Gedling and Beeston and has been in the industry for 12 years, following her mother's cancer battle in 2011.
Collette's determination comes as a new poll of 600 UK hairdressing and beauty salons conducted by the Salon Employers Association, led by Toby Dicker, revealed that over half of VAT-paying businesses are 'seriously considering' closing their doors. This is due to financial pressures because of 'a tax system that is forcing many to move into the grey area of avoiding / evading tax'.
"Disguised employment in our industry, because there's no checks and balances and you don't have to be an employer in a commercial premise, is allowing and facilitating organised crime gangs. Some people are doing this out of sheer desperation and I understand that - this isn't about them. Collette said: "I told the Prime Minister that if he doesn't come true to his promises, I will chain myself to the Downing Street gate because before I have to lose my business, my livelihood, and make 42 people redundant, I'll have to do that." Toby's research for the Salon Employers Association revealed that in 2018, there were 122,000 employees in the hair and beauty sector.
The research revealed that 96 per cent of salons would not take on any more apprentices, with over 40 per cent saying they planned to make immediate reductions. Toby explained: "The statistics we got are overwhelmingly sad, really, and they are really strong for an industry that never has a voice. "Our campaign is not against self employment and I can understand why people do it at the end of the day. But people avoiding tax means that there's less that goes into Treasury, and so less going into our local services, forcing businesses out."