When Aesthetics Practitioners should Register for VAT
Knowing when to register for VAT as an aesthetics practitioner is a common query among healthcare professionals who are new to the specialism.
As a medic, you likely haven’t had to deal with running a business before, so this is new territory.
Believe it or not, VAT is a somewhat controversial topic in aesthetic medicine. This is due to the lack of clarity on distinguising a necessary medical treatment from a purely cosmetic one.
You can find out more about this in our article Are Aesthetics Treatments VAT Exempt? We advise you to form your own opinion on this and take advice from your accountant.
There does, however, come a certain point at which it becomes mandatory to register for VAT. Here we explain when and how to register for VAT.
WHEN AESTHETICS PRACTITIONERS SHOULD REGISTER FOR VAT
In the UK, medical aesthetics practitioners need to register for VAT if their annual turnover (total sales) exceeds £85,000. If your turnover is below this threshold, registration for VAT is not mandatory, but can be done voluntarily.
To register for VAT, you must first set up a VAT online account with HM Revenue and Customs (HMRC). This can be done through the gov.uk website. Once the account is set up, you can register for VAT by completing an online application form. You’ll need to provide details about your business, such as the business name, address, and expected turnover.
After registration, you’ll receive a VAT registration number and must start charging VAT on your goods and services. You will be required to submit VAT returns to HMRC regularly, usually quarterly, and pay any VAT owed.
BENEFITS OF REGISTERING YOUR AESTHETICS PRACTICE FOR VAT
Yes, registering for VAT does mean you’ll need to charge more for your treatments to cover the VAT payments.
However, registering for VAT can also have several benefits...
Perception of increased credibility
Being VAT-registered can enhance your professional image as an aesthetic medicine practitioner; it can make your business appear more established and credible to potential clients.
Reclaim VAT on business expenses including aesthetics training
As a VAT-registered business, you can reclaim the VAT you have paid on business expenses. Examples include stock purchases, rent, and aesthetics training costs. This can help reduce the overall cost of running your practice and your on-going professional development. Once you’ve set up your practice, you can reclaim the VAT on, for example, the Core Training in Botox & Dermal Fillers you took in order to be able to set up your own business.
Then, if you decide to progress your learning and want to undertake a Level 7 Diploma, you can reclaim the VAT on this too. The same for more advanced aesthetics training courses you take to upgrade or refresh your aesthetic medicine knowledge and skills throughout your career.
Keep in-line with your competitors
If your competitors are VAT-registered, it may be necessary to register for VAT to ensure your prices are similarly competitive, and you’re viewed to be of a similar standard.
additional responsibilities once vat-registered
It’s important to note that registering for VAT also comes with additional responsibilities.
These include maintaining accurate records, submitting VAT returns on time, and complying with VAT regulations. However, many patient management tools, payment systems and apps can help you with this.
This requisite to clearly manage your business’ financial dealings can also help you to introduce useful protocols to ensure the administrative side of your practice is run smoothly. Of course, you can also outsource this task or recruit someone to manage it for you, should you prefer to do so.
LEARNING HOW TO MANAGE YOUR AESTHETICS BUSINESS
We understand how daunting it can be to move from being a medical practitioner to becoming an entrepreneur. Especially with all the new business skills you need to acquire.
When undertaking your Level 7 Diploma in Botox & Dermal Fillers with Harley Academy, you will work in a real, working aesthetics clinic. Exposure to this environment gives you hands-on experience of what it’s like to work as an injector within a successful business. It also helps to provide insights into the running of a busy clinic.
During your one-to-one mentoring sessions, you’ll be able to ask our clinical trainers all the questions you need answers for, too. All our Faculty members are active injectors, either working for established aesthetics clinics, running their own practices, or both! As such, they bring a wealth of current, practical business experience to the table.
Furthermore, as part of your course, you’ll receive our Best Practice Guide, packed with advice on running your own aesthetics practice.