Tax Guide for Self Employed Hairdressers in the UK

tax guide for self-employed hairdressers

This is imperative to get a detailed tax guide for self-employed hairdressers, this will help the most in the case of beginners. When you are working in the role of a self-employed hairdresser or a barber in the UK, there are tax obligations like every other profession. You are in a good position to take a serious account of your tax liabilities being a self-employed hairdresser. This could be the amount you owe to HMRC in form of tax, where are you going to pay your tax, what are the required documents to complete the process, and what is the procedure to pay tax in your case.

The good news in this case, is that you will not have to struggle to reach out to the gateway of government. This is because of the fact that you must want to avoid dread and confusion. The important thing to follow in order to avoid any kind of haphazard is to get in touch with HMRC and let them know about your source of income and how much you are making. This does not matter whether you are working as a private barber and offering your services to people or you are associated with a  salon and getting a salary. Furthermore, in the discussion of this comprehensive guide, we will gather information about how to pay taxes being a self-employed hairdresser, the required documents, how much you owe to HMRC, and what can you expense in this regard.


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A Self-Employed Hairdresser? – How Do You Pay Taxes?

The prior most need in case of being in the role of a hairdresser is the declaration of your earnings to HMRC just like it is required from other sole traders or self-employed individuals. All you have to do is to declare your income while doing your self-assessment tax returns. This process of declaring income is actually a way to let HMRC know about where are you working, how much money you are making, and how often you are getting paid by your income source. In a tax year, you will have to meet the deadline of getting registered for the self-assessment by the 5th of October.

Once you are done with this procedure, the stage of paying the tax comes and you will require your unique tax number to complete the requirements of tax payments. This UTR number is normally sent through post to you by HMRC after you have submitted the self-assessment tax returns. Now you will have to be conscious about meeting the dealing of paying tax which is 31st of January every tax year. This is to be considered in the following year of the tax year that you intend to pay for.


Where can I Pay my Taxes?

The popular ways to pay the tax bill are with the support of your personal accountant, doing it yourself via HMRC, and taking the services of online providers. Moreover, you can even use the medium of direct debit to pay your tax bills. Cheques, credit cards, and BACS are also acceptable to be used in this regard. So seek out a suitable way to pay your tax bills once you are done with gathering the required evidence and everything else that is required.


How Much Do I Owe?

Well how much you owe to HMRC in form of tax is all related to the amount of income that you are earning. You should be consciously aware of all the types of taxes. There are generally three that include class 4 national insurance, class 2 national insurance, and income tax. The case of paying income tax is a variable procedure because the amount of income tax to pay depends on the amount you’re earning. The case of paying the national insurance class 2 and 4 is applicable when you are earning more than the figure £12,570.


What Documents Will I Need?

This is a basic tax procedure that you will require to make income evident. This explains that you will have to have pieces of evidence of your business expenses and of your earnings as well. This means that you are required to record every expense and income that you are making from your business. The idea of keeping the record is possible by keeping the invoices, uploading the receipts on a relevant platform to keep them saved, or you can even making a spreadsheet. This is because of the fact that HMRC might require a record of these things even after the tax bill is paid. That too for a period of 22 months. The required record can involve:

  1. Chair hire
  2. The rent of the premises
  3. The receipt of the travel
  4. The customer cut receipts
  5. The invoices for the jobs


What can I Expense?

If an expense is associated with your business need in real, you are completely allowed to add this to the list of being a self-employed barber or a hairdresser. The common expenses of the self-employed hairdresser include hair care products, trade magazine subscriptions, salon costs (utilities, phone), training, marketing costs (website, domain name, advertising campaigns), travel expenses, accounting fees, space rent, hairdressing equipment (trolley, straighteners, hairdryer), and the uniform.


The Bottom Line

Now that you have gathered a fair amount of information about the tax guide for self-employed hairdressers, we can bring the discussion towards wrapping up. This is equally important to be aware of tax liabilities for hairdressers and barbers who are working in the capacity of being self-employed. This will be helpful to avoid any kind of hefty amount fines charged by HMRC or other such penalties in case of missing out on the tax deadlines or being incapable of providing the evidence when asked. Especially when you are a beginner, there are high chances of making unconscious mistakes in handling your tax affairs. We hope this post has proved to be helpful to develop a better understanding of the tax affairs of hairdressers who are self-employed. This will help to handle the tax obligations in an efficient manner in the future.


Paying your tax bills on time and accurately is a daunting and time-taking exercise. AccountingFirms can help you in managing your taxes and pay your taxes on time with the help of professional accountants.


Disclaimer: All the information provided in this article on tax guide for self-employed hairdressers, including all the texts and graphics, in general. It does not intend to disregard any of the professional advice.