Navigating VAT Facial Aesthetics: Temporary Registration Explained

Understanding VAT Facial Aesthetics

Has your facial aesthetics business temporarily exceeded the £90,000 VAT threshold? Perhaps due to a successful promotion or temporarily taking on another practitioner’s clients? If so, you may not need to register for VAT facial aesthetics.

The “Exception to Registration” Option

HMRC allows businesses that temporarily exceed the threshold to apply for an “Exception to Registration” if you expect your turnover to drop below the deregistration threshold of £88,000 in the next 12 months.

Quick Application Guide:

Act within 30 days of exceeding the threshold
Complete the VAT1 online registration form but upload a covering letter explaining:
- Why your turnover temporarily spiked
- Why do you expect it to fall below £88,000 soon
- Include evidence and realistic projections

What HMRC Looks For:

Clear evidence the spike was a one-off event
History of trading below the threshold
Realistic future projections showing decreased turnover
Specific reasons for the temporary increase (e.g., seasonal event, covering for another practitioner)

Sample Exception Letter:

[Your Business Name]
[Your Address]
[Your Contact Details]

[Date]

HM Revenue & Customs
VAT Registration
BX9 1WR

Dear Sir/Madam,

Re: Application for Exception from VAT Registration

I am writing to apply for an exception from VAT registration under Paragraph 1(3), Schedule 1 of the VAT Act 1994.

My business exceeded the VAT registration threshold of £90,000 in the 12 months ending [Month/Year], with a total turnover of £[amount]. However, I have reasonable grounds to expect that my taxable turnover in the next 12 months will not exceed £88,000.

The recent increase in turnover was due to [specific temporary reason, e.g., "covering for a colleague on maternity leave from January to March 2025" or "a one-off promotional event that generated exceptional bookings"]. This is not representative of my normal business pattern.

I have enclosed my turnover figures for the past 24 months, which show consistently trading below the threshold prior to this temporary spike. I have also included projected figures for the next 12 months showing an expected annual turnover of £[amount].

The projected decrease in turnover is based on [explain why turnover will decrease, e.g., "the end of the temporary arrangement to cover for my colleague" or "returning to normal booking patterns following the promotional period"].

I understand that if my application is granted and my turnover does not fall as expected, I may be liable to register retrospectively.

I look forward to hearing from you regarding my application.

Yours faithfully,

[Your Name]
[Your Position]