TAX GUIDE

Hairdresser & Beautician Tax Guide: Expenses, Self-Assessment & Chair Rental

By Sardar Muhammad, AAT 9 min read

Hairdressing salon with styling tools

📋 Quick Summary

  • Self-employed beauty professionals must file self-assessment by 31st January
  • Chair rental, tools, products and training are all tax deductible
  • Register for self-assessment with HMRC within 3 months of starting
  • Set aside 20-30% of income for tax

Who Is This Guide For?

This guide covers tax for self-employed beauty industry professionals, including:

  • Hairdressers & stylists
  • Barbers
  • Beauticians
  • Beauty therapists
  • Nail technicians
  • Makeup artists
  • Lash technicians
  • Massage therapists
  • Mobile beauty professionals

Employed vs Self-Employed: Know the Difference

Your employment status matters for tax. Here's how to tell:

✓ Self-Employed

  • Set your own hours
  • Set your own prices
  • Pay for supplies/products
  • Can work elsewhere
  • Risk own money
  • Provide own tools

Employed

  • Set hours by salon
  • Prices set for you
  • Products provided
  • Can't work elsewhere
  • Regular salary
  • Tools provided

If you rent a chair or space, you're almost certainly self-employed and need to complete self-assessment.

Beauty products and makeup brushes

Allowable Expenses for Beauty Professionals

Claim these expenses to reduce your tax bill:

💇 Tools & Equipment

  • Scissors (all types)
  • Hair dryers & diffusers
  • Straighteners & curlers
  • Clippers & trimmers
  • Brushes & combs
  • Beauty equipment
  • Nail lamps & drills
  • Lash equipment
  • Massage tables
  • Trolleys & storage

🧴 Products & Supplies

  • Hair colour & developer
  • Shampoo & conditioner
  • Styling products
  • Nail polish & gels
  • Beauty products
  • Disposables (cotton, wipes, etc.)
  • Towels & capes

🏪 Premises Costs

  • Chair rental – fully deductible
  • Room rental
  • Salon equipment hire
  • Utilities (your share)

📱 Business Costs

  • Business phone
  • Booking systems (e.g., Fresha, Treatwell)
  • Website & social media ads
  • Business cards & marketing
  • Insurance (public liability, salon insurance)
  • Training & CPD courses
  • Professional memberships
  • Accountancy fees

🚗 Travel (for mobile professionals)

  • Mileage: 45p/mile (first 10,000), 25p thereafter
  • Parking for client visits
  • Public transport to clients

Chair Rental: What You Need to Know

If you rent a chair or space in a salon, you're running your own business. This means:

  • ✅ Register as self-employed with HMRC
  • ✅ File self-assessment each year
  • ✅ Pay your own tax and National Insurance
  • ✅ Keep records of income and expenses
  • ✅ Chair rental is a fully deductible expense

Example: Chair Renter Tax Calculation

Total client payments: £35,000

Chair rental: £6,000

Products: £3,000

Tools & equipment: £1,500

Insurance & other: £500

Total expenses: £11,000

Taxable profit: £24,000

Tax due (approx): £2,286 + NI £1,656 = £3,942

Record Keeping Tips

  1. Separate bank account – keep business and personal separate
  2. Track all income – cash, card, and online payments
  3. Photograph receipts – apps like Dext make this easy
  4. Use accounting software – QuickBooks, FreeAgent, or spreadsheets
  5. Keep records for 6 years – HMRC can check back this far

Do I Need to Register for VAT?

You must register for VAT if your turnover exceeds £90,000 (2024/25 threshold). Most chair renters won't reach this, but if you're running a busy salon or multiple chairs, check your turnover.

Frequently Asked Questions

Am I employed or self-employed as a hairdresser?

You're self-employed if you control your hours, set your prices, pay for your own supplies, and can work for other salons. If the salon tells you when to work, provides equipment, and pays you a wage, you're employed.

Can I claim for my hairdressing tools?

Yes! All tools used for business are allowable expenses: scissors, dryers, straighteners, clippers, brushes, and equipment. Keep receipts for everything.

Is chair rental tax deductible?

Yes, chair rental is a fully allowable business expense. You can deduct the full amount you pay to rent a chair or space in a salon from your taxable income.

Need Help With Your Tax Return?

I help self-employed hairdressers and beauty professionals across Glasgow with their taxes. Let me handle your self-assessment while you focus on your clients.

SM

Sardar Muhammad, AAT Certified

Sardar is an AAT certified accountant and founder of LimeTree Accounting Solutions in Glasgow. He specialises in helping self-employed beauty professionals manage their finances and taxes.