Simple answer – YES
You will be taking more than 85k a year, our average salon takes about 250k – 350k a year depending on which year they are trading in.
You can offset all of your start up expenditure against your first few VAT returns anyway, and some banks offer VAT loans especially for new start up businesses for their first year as cash flow can sometimes be a bit tricky. Cashflow is a whole other subject as it really is the most crucial part of your business. You may be running at a profit, however sometimes you won’t have the cash to pay your bills if you don’t keep a beady eye on it.
Make sure you have an accountant to help you through this process, along with payroll and your end of year accounts that you will need to post on Companies House. That’s if you are a limited company of course. Learn more about that HERE.