This Content Was Last Updated on April 6, 2023 by Jessica Garbett
VAT is a turnover based tax – distinguished from being based on profits like Income Tax, Corporation Tax or National Insurance.
If your business turnover is less than £85,000 (2023/24) a year then it doesn’t apply – this will take many Yoga Businesses outside of VAT.
However larger Yoga Businesses – for example Yoga studios, or Yoga Teachers who also offer a substantial retreats or training programme – will find themselves having to contend with VAT.
With planning, it may be possible to mitigate some VAT costs.
What is very important is that all businesses are cognisant of the VAT threshold, how it is calculated, and take advice in good time if they are approaching the threshold. This is important as, being a “cliff edge” tax, a small error close to the threshold can be very expensive.
Our guidance on vat is split over the following topics: