The Hair & Barber Council have responded to HMT on behalf of our industry relating to a new potential Online Sales Tax (OST)
 
HMT released a consultation and call for evidence back in February this year on whether the UK should implement an Online Sales Tax. The consultation has been lengthy with a wide scope.

It appears, if adopted, OST would not be a revenue raiser but would instead be used to rebalance the tax system by reducing business rates for high street businesses including salons and barber shops.
 
No decision has yet been made as the Government wanted to hear businesses views. 
 
Salons and barber shops occupy 16.2% of high streets, the largest occupier so this would be a positive step towards a fairer tax system and benefit salons and barber shops everywhere who are weighed down by business rates, especially with operational costs increasing. We are all very aware that online retailers benefit from reduced tax burdens unlike high street salons, and barber shops, so we welcome OST.
 
Why this has not been implemented before now is very concerning as whilst online businesses have thrived over many years and more so during the pandemic, high streets have been weighted down with increasing costs.

We welcome any reduction in business rates and a fairer tax system for our industry and will continue to challenge and lobby Government to this end. Our industry needs a level playing field and the opportunities given to other sectors, said Collette Osborne of the Hair and Barber Council
 
The Hair & Barber Council working in the industry for the industry.