I speak to many customers who are unsure, or unaware that if they purchase from Simply Wigs they may be eligible to reclaim the VAT paid. This can be quite a saving and shouldn’t be overlooked.
VAT relief on wigs
Can I claim?
You can claim the VAT back on your wig purchase (currently at 20%) if you have alopecia, are receiving chemotherapy, chronically sick or have a disabling condition. It does not matter how many wigs you purchase, you still have the right to claim back the VAT on each wig that you buy. If you are unsure if you can claim back the VAT, click on the following link for clarification HMRC Helpline or call on 0845 010 9000, for some advice. You may have to go through some annoying button pressing choices, but you will eventually be able to speak to an advisor. If you are unsure it is always best to check.
Making a false declaration to the HMRC is fraudulent and is to be avoided at all costs!
What can I claim on?
HMRC have informed us that VAT refunds can only be considered on purchases of wigs and qualifying hairpieces. VAT cannot be reclaimed for any accessories (including scarves, turbans, caps) or any aftercare products (including shampoo, conditioner, styling brushes or products).
What do I need to do?
It’s very simple. All you need to do is download a VAT FORM here, complete all the details and return to our offices. We will then refund the VAT you have paid, back onto the card you paid with. We aim to refund the VAT within 14 days. Although I do say so myself – it is normally within this timescale.
What do I enter on the VAT form?
Name, address and name of the product that you have ordered. You will also need to declare the full details of the condition you have which makes you eligible. This information will never be shared with any other organisation or 3rd party (unless required to do by law) and we will never link this to your purchase for the purposes of marketing.
How much do I get refunded?
VAT at the current rate – 20%.
The amount of the refund can be confusing, so please remember that it is the amount of VAT that you have paid (charged at 20% on the price of your wig) and it is this amount that will be refunded and not a 20% discount. It can be quite difficult to explain but I will try to show you in the following example:
If you buy a wig from Simply Wigs at £100 then this is made up of the cost of the wig £83.33 plus VAT at the standard rate of 20% (£16.67) and this brings the total to £100. This means that £16.67 will be refunded to you.
It is not calculated by offering you a 20% discount from the purchase price of £100 which would be £20.00.
Hope my Maths lesson for the day has been useful. If not, just give me a call at the office and I will do my best to offer further guidance.