Aesthetic & Beauty Accountants

Self-employed hairdressers can claim rent for a chair in a salon, professional tools (scissors, clippers, hairdryers), styling products, training courses, professional insurance, uniforms, and marketing costs. If you work from home, a proportion of household expenses like electricity and internet may also be claimed.

Some beauty treatments are subject to VAT, while others may be exempt. Generally, cosmetic and aesthetic treatments (such as facials, waxing, and hair services) are standard-rated for VAT. However, treatments with a genuine medical purpose, such as certain aesthetic procedures carried out by a registered medical professional, may qualify for VAT exemption. If your turnover exceeds £90,000 in any rolling 12 month period, you must register for VAT and charge it where applicable.

If you rent a chair in a salon, you are considered self-employed, responsible for paying your own tax and National Insurance. Your rent payments to the salon owner are an allowable business expense, and you should keep detailed records of your income and expenses for tax purposes. If you hire others to work under you, you may need to consider whether they should be treated as employees rather than self-employed contractors.

A sole trader setup is simpler and suits those with lower earnings, but a limited company can offer tax benefits and protect personal assets. Limited companies can be more tax-efficient for salon owners and high-earning beauty professionals, but they come with more administrative responsibilities. The best option depends on your earnings, business goals, and risk level.

Yes, you can accept cash payments, but they must be properly recorded for tax purposes. Keeping accurate records of all cash income ensures compliance with HMRC regulations and helps avoid tax investigations. Using a digital payment system alongside cash transactions can improve tracking and make tax returns easier.