Gift Voucher Expiry Law UK: A Guide for Salons

Quick answer: Yes, gift vouchers can have an expiry date in the UK. There is no law setting a minimum period, but the expiry date must be clear before purchase and fair. Twelve months or more is widely seen as fair, and a very short limit, such as three months, could be challenged as an unfair term.

This guide is based on UK law. Many countries have their own gift voucher rules, so check your local requirements.

Gift vouchers are a hot topic in the beauty world, and just like booking fees, I see a lot of make it up as you go behaviour that can land salons in hot water. Here is the thing: until a voucher is redeemed, it is essentially money already sitting in your business. Giving people a generous, clear window to use it, and being flexible when life gets in the way, is good for your clients and great for your reputation.

Clear terms matter to clients, too. In a 2021 Which? survey of 2,000 UK adults, only 53% of people who had received a gift card said it had a clearly stated expiry date, and 27% said the date was unclear. Salons that make their terms easy to find and easy to understand stand out for all the right reasons.

Why gift vouchers are good for your business

• You are paid upfront.
• They bring in new clients who might not have booked otherwise.
• Happy clients buy them for friends and family, which spreads the word about your salon.

Expiry dates

Under the Consumer Rights Act 2015, your terms must be fair and transparent. A very short expiry date could be treated as unfair, especially if the client was not told clearly. Twelve months or more is widely seen as fair, and many salons offer longer to stand out.

Since 6 April 2025, the Digital Markets, Competition and Consumers Act covers misleading practices. Hiding or blurring an expiry date can count as one. Show the date clearly at the point of sale and print it on the voucher.

Refunds

Gift vouchers are usually non-refundable once bought. When a voucher is bought online or by phone, the buyer normally has 14 days to change their mind and get a refund under the Consumer Contracts Regulations.

Part used vouchers

If a client spends less than the voucher value, keep the balance available until the expiry date and say so in your terms. You do not have to give change in cash; just make your policy clear.

Lost vouchers

You decide whether to replace lost or stolen vouchers. Online systems with a unique code make replacement easy, because you can check the balance and reissue it.

VAT on gift vouchers

This applies if your salon is VAT registered. Since 1 January 2019, vouchers have been split into two types:

• Single-purpose voucher: you know at the point of sale what VAT is due, because everything the voucher can buy has the same VAT rate. Most salon vouchers are this type, so VAT is due when you sell the voucher.
• Multi-purpose voucher: the VAT due is not known until it is spent, for example if it can be used on items with different VAT rates. VAT is due when it is redeemed.

Check with your accountant if your vouchers cover retail products at different rates.

What if a client challenges an expired voucher?

Clients can bring a claim about an unfair term for up to 6 years in England, Wales and Northern Ireland, or 5 years in Scotland. Clear, fair terms at the point of sale are your best protection. Many salons also honour a voucher for a short time after expiry, which builds goodwill.

If a business closes

If a business goes into administration, voucher holders usually become unsecured creditors and may not get their money back. It is one more reason to manage vouchers carefully and track sales and redemptions.

Sample gift voucher terms and conditions

Adapt this to your own business:

This voucher is valid for 12 months from the date of purchase, shown on the voucher. It can be used towards any treatment or product at [salon name]. Any unused balance remains available until the expiry date. This voucher cannot be exchanged for cash. Please quote your voucher code when booking. Lost vouchers can be reissued when we can confirm the purchase. Vouchers bought online can be cancelled for a full refund within 14 days of purchase.

Selling vouchers well

• Offer at least 12 months.
• Show your terms at checkout and on the voucher.
• Track every sale and redemption with a booking or voucher system.
• Remind clients before their voucher expires; it often turns into a booking.

Taking deposits too? Read our guide to deposits, booking fees and cancellations.

FAQs

Can gift vouchers legally expire in the UK?

Yes. There is no minimum period set by law, but the expiry date must be clear before purchase and fair.

Are gift vouchers refundable?

Usually not once bought. When bought online or by phone, the buyer normally has 14 days to cancel for a refund.

Is it legal to put an expiry date on a gift voucher?

Yes, as long as it is clearly shown before purchase and on the voucher, and the time limit is reasonable.

What should gift voucher terms and conditions include?

The expiry date, what the voucher can be used for, how part used balances work, whether it can be exchanged for cash, what happens if it is lost, and the 14-day cancellation right for online purchases.

Do I charge VAT on gift vouchers?

If you are VAT registered and the voucher can only be spent on items at one VAT rate, VAT is due when you sell it.