Tax Guide for Hairdressers and Beauty Therapists

Running Your Own Chair, Running Your Own Business

If you are a self-employed hairdresser or beauty therapist, you already know the freedom of being your own boss. But with that freedom comes the responsibility to sort out your tax.

Whether you rent a chair in someone else's salon, run your own place, or work as a mobile stylist, this guide covers what you need to know for the 2025/26 tax year.

Chair Rental vs Employment

The biggest question in the hair and beauty industry is whether you are genuinely self-employed or actually employed. Under a genuine chair rental arrangement, you pay a fixed fee for a chair, set your own prices, choose your clients, decide your hours, and handle your own tax through Self Assessment.

Some salons use a commission model where the salon takes bookings, manages the diary, provides all products, and sets prices. This can look a lot like employment, even if the salon calls it self-employment. HMRC looks at the reality of the relationship, not what the contract says. If HMRC decides you are employed, the salon faces a bill for unpaid PAYE and employer's NI, potentially going back years. If you are not sure, use HMRC's CEST tool online.

Expenses You Can Claim

Chair or Space Rental

The rent you pay is your biggest expense and is fully claimable — whether a flat weekly/monthly fee or a percentage of your takings.

Products and Materials

All products for use on clients are business expenses: hair colour, developer, bleach, toner, shampoos, conditioners, styling products, wax, nail polish, gel polish, acrylics, false eyelashes, tinting products, threading supplies, disposable items (towels, capes, gloves, couch rolls), foils, clips, and pins. Products for personal use are not claimable.

Equipment and Tools

Claimable equipment includes scissors, thinning shears, razors, hair dryers, straighteners, curling wands, clippers, nail lamps, drill sets, wax heaters, facial steamers, trolleys, and salon chairs or beauty couches you provide yourself. The Annual Investment Allowance (£1 million for 2025/26) means you can claim the full cost of expensive equipment upfront.

Training, Memberships, and Insurance

Courses that maintain or improve your existing skills are claimable: advanced cutting, colouring techniques, balayage, new beauty treatments, health and safety, and NVQ top-ups. Membership fees for industry bodies (NHF, BABTAC, FHT, Guild of Professional Beauty Therapists) are claimable. Business insurance — public liability, professional indemnity, treatment risk, and contents insurance — is fully claimable.

Uniforms and Work Clothes

General clothing is not claimable, even if worn solely for work. Branded uniforms with your business logo or name are claimable, as are protective items like aprons and tunics you would not wear outside the salon.

Marketing and Communication

Website hosting, social media advertising, business cards, portfolio photography, online booking systems (Fresha, Treatwell, Booksy), loyalty programmes, and printed price lists are all claimable. Claim a reasonable proportion of your mobile phone bill, or the full cost of a dedicated business phone.

Travel

For mobile hairdressers and therapists, travel to clients' homes is fully claimable. Use HMRC's mileage rates (45p per mile for the first 10,000, 25p after that) or actual vehicle costs. Travel from home to a single permanent salon is not claimable. Travel between different locations during the day counts as business travel.

Home Office and Home Salon

If you manage bookings and accounts from home, claim the simplified flat rate: £10/month for 25-50 hours, £18 for 51-100, or £26 for 101+. If you run a home salon, you may claim a higher proportion of household costs — but be aware this can affect your Capital Gains Tax exemption when selling the property.

Other Expenses

Accountancy fees, software subscriptions, bank charges, stationery, and printing are all claimable.

National Insurance

You pay Class 2 NI at £3.45 per week (if profits exceed £6,725) and Class 4 NI at 6% on profits between £12,570 and £50,270, then 2% above that. Both are calculated through Self Assessment.

Record-Keeping Tips

• Photograph receipts immediately — thermal paper fades fast
• Separate business and personal spending with a dedicated bank account
• Log income daily or weekly — whether cash, card, or bank transfer
• Track cash carefully — cash-heavy businesses attract HMRC attention
• Keep records for at least five years after the filing deadline

Using accounting software from day one saves a mountain of work later. Accounted's AI bookkeeper, Penny, categorises your transactions and keeps a running total of your income and expenses so you always know where you stand.

File Your Return, Keep Your Earnings

You got into hair and beauty because you are creative and you love making people feel good. Every expense you claim is money back in your pocket, and staying on top of it throughout the year takes the pressure off when January rolls around. If you want a hassle-free way to manage your bookkeeping, start your free trial with Accounted. Let Penny handle the numbers so you can focus on your clients.

Related Reading

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