Running a hairdressing business is fast-paced and demanding—but keeping on top of your finances shouldn’t be. Whether you’re a mobile stylist, rent a chair, or manage your own salon, having a specialist accountant for hairdressers can give you the clarity and support you need.
At Yorkshire Accountancy, we’ve helped stylists, barbers, colourists and salon owners across the UK. From handling tax returns to making sense of VAT and expenses, we make things simpler—without the jargon or the hefty fees.
Hairdressers often have several income sources. You may charge clients directly, sell products, receive tips, or rent space to another professional. Each type of income has its own tax treatment.
We’ll help you work through what counts as trading income, what might be classed as property income, and how to make sure nothing’s missed or misreported on your return. That includes how to handle income from deposits, no-shows, or digital vouchers—especially if you’re VAT registered.
If you’re working for yourself, you’ll need to file a Self Assessment tax return each year. You’ll also need to pay National Insurance, keep records, and budget for any tax due.
That’s where tailored self-employed hairdresser tax advice makes a real difference. We’ll walk you through what records you need to keep, what you can (and can’t) claim, and how to keep your bookkeeping light and manageable.
We’ll also advise on Making Tax Digital if you’re VAT registered now—or approaching the thresholds that bring it into play.
Most of what you spend in the course of your work can be claimed as an expense. The key is knowing what qualifies, and where HMRC draws the line.
Hair products used on clients? Claimable. Tools like scissors, clippers and dryers? Absolutely. The same goes for items like colour foils, gloves, towels, salon rent, insurance and music licensing.
But what about the things hairdressers often overlook?
If you take towels or gowns home to wash, a portion of your laundry costs can be claimed. If you work from home even occasionally—for booking appointments, doing your accounts or ordering supplies—you may be able to claim a share of household costs, or use the HMRC flat rate allowance. If your mobile phone is used for contacting clients or managing social media, a business portion of that cost is claimable too.
We also help hairdressers claim capital allowances for higher-cost items like salon furniture, mirrors or professional-grade equipment. And if you’re buying small but frequent items (like clippers or consumables), we’ll make sure you’re claiming them correctly as trading expenses rather than assets.
Tips are often a grey area, but from a tax perspective, they’re usually taxable income. Whether they’re cash in hand or processed via card machine, we’ll help you treat them correctly—and explain when National Insurance or PAYE rules may apply.
Deposits kept after a no-show are taxable too. If you’re VAT registered, we’ll also make sure you’re handling these correctly on your VAT return.
Once your turnover hits the VAT threshold (currently £90,000), you’ll need to register. But in the hair and beauty world, this can be more complex than it seems—especially if you’re renting out space to other professionals or receiving payments for retail products.
We’ll help you understand whether the Flat Rate Scheme is a good fit (many stylists qualify for the 13% rate) and explain what happens if you fall under the “limited cost trader” rules.
If you’re already VAT registered, we’ll keep your submissions accurate and compliant under MTD.
We work with a wide range of bookkeeping tools and can help you find one that suits your business—whether that’s QuickBooks, Xero, FreeAgent or something else.
As partners with both Xero and QuickBooks, we can often offer free or discounted software licences. If you choose QuickBooks, we’ll also give you a free one-to-one training session to help you get started. This offer is valid as of March 2025 and may be time-limited.
Our goal is to give you a setup that works—not one that creates more admin than it saves.
We’ve built long-term relationships with stylists and salon owners across the UK because we genuinely understand the trade. We know what matters most to you: simple advice, practical help, and no hidden costs.
Our service includes:
We’re easy to reach, easy to talk to, and here to support your business long-term.
Whether you’re just starting out or feel like your accounts have got a little out of control, we’re here to help. You’ll get clear advice, fast answers, and the peace of mind that everything’s in order.
Contact us today for a free, no-pressure chat with a friendly accountant who actually understands the hairdressing world.
Please call or email to arrange your FREE consultation for any of our services.
We’re a modern, friendly and proactive accountancy service.
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