Hello all,
I run a small day spa offering a wide range of services from massages, facials, waxing etc
I employ 4 therapists and I also provide treatments to cover holiday etc.
We hit the threshold to become VAT registered last April so have had to apply and will have to back date and pay from April - Dec what we owe.. poor accountant and my own ignorance really.
Anyway I have the savings to cover this, just about.
We were advised to increase our prices to help cover the VAT, this is where I am getting stressed out.
Our average profit is around 20%, so I have had to increase prices between 15-20% other wise we will just about break even after tax
A deep tissue massage used to cost £65 now its £76... Obviously we will lose clients, but I just don't know anyway around it. If we don't increase our prices all of our profit goes to the tax man.
How have people managed to do this??
