In the High Court, Mr. Justice Blackburne commented:
"I certainly do not consider that the question is one which is altogether "acte clair". On the contrary, I am troubled by it.”
This does not mean, however, that he was so troubled to find in favour of the salons. In a 98-paragraph judgment Mr. Justice Blackburne chose to sustain the decisions of the original VAT Tribunals. He ruled that the VAT exemption did not apply to a licence to occupy land that was only one element of a package of supplies. In other words where the licence was combined with access to towels, tills and water (for example) then all should be seen in combination. He said that the various facilities provided to the stylists were a “single indivisible economic supply that it would be artificial to split. The facilities were interdependent, in that the provision of one would be of little use without the others".
 
As with all matters legal it is important to ensure that the salon is properly advised on the pros and cons of each course of action.  
So what are the solutions? Well chair rental is still viable and an excellent opportunity for both stylist and salon provided it is managed correctly. The National Hairdressers Federation has two contracts which are heartily recommended,
The Consolidated Service contract is a full contract for the use of supplies and services within the salon.

The License Over Land contract (which is the contract which suffered from misuse by the salons in the court cases) grants the stylist a non-exclusive right to work from defined areas in the salon. This is typically useful where a spare room or floor is available (as was the case with Michael Jane). The problem lies in its use (or misuse) as the contract is not a tax avoidance tool but a definer of a contractual property relationship and as long as the salon’s business models and practices reflect this then it has real and positive uses to protect the salon. 

If it still seems like a minefield or you simply want a chat then you should take advantage of your solicitor or services like Your Salon Lawyer from Wright & Wright Solicitors.