Voucher sales peak in December, which means you're taking money today for work you'll do in the quiet weeks of January and February. It's a great boost for the bank balance, but that money represents a debt your salon owes until the client sits in your chair.

If you don't set clear terms for expiry and redemption before the rush starts, that Christmas cash can disappear before the work is done.

The January cash gap

Vouchers sold in December create a gap between the day you get the cash and the day you do the hair. If your salon sells 80 vouchers in December at an average value of £50, that's £4,000 in your account during your busiest month.

When those 80 clients book their appointments in January and February, your stylists will do £4,000 worth of work that brings no new money into the till. The wages for the stylists and the cost of the products used for those services still have to be paid from the till.

If you've already spent that £4,000 on December overheads, you'll be funding those January appointments from whatever cash flow is left. Treating voucher money as a debt helps you keep the funds needed to cover those costs.

Setting your voucher terms

Decide exactly what your vouchers can buy before you sell the first voucher. You should decide whether your vouchers pay for services, products, or both, and make sure this is stated on the voucher itself.

It's also worth deciding on your refund policy now and telling the buyer at the point of sale. Setting clear terms early prevents awkward conversations when a client tries to spend a voucher on something you haven't included.

Luminate won't let you sell a voucher in a sale that has a discount on it, because the voucher gives its full face value. If a client gives their voucher to someone else, the unique code carries the value just like cash. Make these terms visible to the buyer from the start.

Expiry rules in the UK and Ireland

The legal requirements for voucher expiry depend on whether your salon is in the UK or Ireland. In the UK, there's no law that sets a minimum expiry period. You're allowed to set an expiry date if it's fair and you've clearly told the buyer.

An unfair term isn't binding on the client under the Consumer Rights Act 2015.

Ireland has stricter rules under the Consumer Protection (Gift Vouchers) Act 2019. Any voucher sold in Ireland must be valid for at least five years from the date it's bought. If you sell a voucher with a shorter expiry, the law treats it as having five years. You must also provide the expiry date in writing, either on a paper receipt or by email, at the time of the sale. Within Luminate, you can set a default expiry period of up to 60 months.

Partial use and lost codes

Clients often want to spend part of a high-value voucher and keep the rest for later. In Ireland, the law says customers can't be forced to spend the full voucher amount in one go. In the UK, you can choose whether to allow partial redemption.

If you turn partial redemption off in your settings, any balance left over after a purchase is forfeited.

Recording the name and email of the voucher recipient gives you a record to search if the code is lost. Unique codes are printed on the receipt at the point of sale. The Gift Vouchers report allows you to search by the recipient's name, so a lost code can be found.

Tracking the outstanding balance

The Gift Vouchers report in Luminate shows an outstanding balance, which represents the total amount left on all active vouchers. This figure tells you exactly how much work your clients can still come in and claim.

Luminate marks vouchers as expired automatically once they reach their date, though it doesn't send warnings to the salon or the client beforehand.

Checking this report regularly helps you understand how much of your bank balance is committed to future services. You can see how these reports look on the gift voucher feature page.

VAT on vouchers

If your salon is VAT-registered, the timing of when you pay tax on a voucher is determined by how the voucher is classed by HMRC. Vouchers are defined as either single-purpose or multi-purpose.

This determines whether VAT is due when the voucher is sold or when it's redeemed. HMRC's guidance is in VAT Notice 700/7, Business promotions.

If your salon is below the £90,000 VAT threshold and isn't registered, you can skip the VAT question. Otherwise, ask your accountant to confirm how your vouchers are classed before the December rush starts to make sure your tax reporting is accurate.

Managing the January redemption wave

The first months of the year are often busy with voucher redemptions. While it's good to see the chairs full, these appointments don't bring in new cash. You must balance these bookings with full-price services from your regulars to keep your daily income steady.

If you choose to restrict voucher use on Saturdays, a written term on the voucher lets you hold a client to the Saturday restriction.

Your stylists still cost you wages for these services, so managing the volume of redemptions is a key part of your planning for the quiet season.

Winning a new regular client

Many gift vouchers are given to people who've never visited your salon, which gives you a chance to turn a first-time visitor into a regular. Treat the voucher appointment with the same attention as any other booking. A thorough consultation that sells helps build trust with a new client as soon as they sit in the chair.

Make sure every client has a plan for their next visit before they leave, and encourage your staff to focus on getting clients to rebook while they're at the desk.

Action plan for this week

Take a morning to set your voucher rules before the salon gets busy.

  • Set your defaults. Log into your settings and choose your expiry period and whether you'll allow partial redemptions.
  • Record recipient details. Make sure your team knows to ask for the recipient's name and email at the till so lost codes can be recovered.
  • Check your reports. Review your current outstanding balance to see the value of the vouchers already in circulation.
  • Speak to your accountant. Confirm the VAT treatment for your vouchers so you know whether to account for the tax in December or when the vouchers are spent.