Exploring Your Career Options in Hairdressing
During your training, there may be brief references to the different career paths you can follow, such as becoming an employee in a salon, renting a chair as a freelancer, or working entirely on your own as a mobile stylist. However, the practicalities of becoming self-employed, including registering with HMRC, managing your income, and handling tax obligations, are not typically part of the curriculum.
As a result, many newly qualified hairdressers start out with limited knowledge of how to run a business or navigate the responsibilities that come with working for themselves. This is one of the most important aspects to understand early on, as it affects everything from how you invoice clients to how you submit your annual tax return.
Understanding the Self-Employed Hairdresser Role
Self-employment in the hairdressing industry offers great flexibility. You have the freedom to choose your working hours, set your pricing, and offer services that suit your expertise. There are three main ways to operate independently: renting a chair in a salon, offering mobile hairdressing services, or setting up your own home salon.
Renting a chair is popular among hairdressers who want the structure and visibility of a salon without being tied to a full employment contract. The salon often provides basic utilities, a reception area, and foot traffic, while you bring your own equipment and manage your clients and bookings.
Mobile hairdressers visit clients at their homes or workplaces. This method offers a lower start-up cost since you don’t need a fixed location, but it involves travel time and logistics. If you choose this path, planning appointments around travel is crucial to avoid delays and inefficiencies.
Some choose to convert a part of their home into a salon space. This requires initial investment, especially if you need to adapt the environment to be professional and safe. You’ll also need to check if your local authority requires any permissions or licenses to run a salon from home.
Registering as a Self-Employed Hairdresser
If you decide to work independently, one of your first steps will be registering as self-employed with HM Revenue and Customs. This is a legal requirement for anyone earning over £1,000 per year from self-employment. The process is straightforward and can be completed online through HMRC’s website.
To register, you’ll need to provide a few personal and professional details. These include your full name, date of birth, address, National Insurance number, the date you started your self-employment, and a brief description of the nature of your work. Once registered, you’ll receive a Unique Taxpayer Reference number by post, which typically arrives within two weeks.
This reference number is important and will be used in all communications with HMRC. You should also make a note of it for when you file your Self Assessment tax return, contact HMRC for support, or need to confirm your registration for other administrative purposes.
If you are approaching the Self Assessment deadline of 31st January and have not yet registered, it’s vital to do so by mid-December. Delays in receiving your Unique Taxpayer Reference number could result in missed filing deadlines and penalties.
Choosing and Purchasing Essential Equipment
As a self-employed hairdresser, you’ll need to invest in tools and equipment to deliver professional services. The essentials will vary slightly depending on whether you work in a salon, from home, or travel to clients, but most stylists need a core set of reliable tools.
Your toolkit should begin with a range of brushes. Each type of brush serves a different purpose. Barrel brushes, both small and large, are ideal for blow-drying and adding volume. Paddle brushes help with smoothing long hair, and vent brushes are good for quick drying.
A sturdy comb is essential for sectioning hair accurately during cuts and styling. You will also need a professional-grade hairdryer that can stand up to daily use. Look for one with multiple heat settings and a cool-shot function to improve styling results and prevent damage to hair.
Hairdressing gowns are another key item. These keep your clients clean and comfortable and are often expected by clients as part of a professional service. If you rent a chair, ask whether gowns are provided. If not, you’ll need to buy your own.
Rollers and curling equipment help create a variety of styles, while straighteners are used both for sleek finishes and for creating waves or curls, depending on the technique. A high-quality pair of scissors is essential, and as your experience grows, you may want to add specialty shears or razors to your collection.
Stocking a selection of shampoos and conditioners suitable for different hair types will allow you to offer a more tailored service. Some clients may have allergies or strong preferences, so it can be helpful to discuss their needs in advance.
Finally, towels are an indispensable part of your equipment list. Purchase enough to accommodate multiple clients a day, and choose ones that are soft, durable, and absorbent. They will need to be washed frequently, so investing in quality can help reduce wear and tear over time.
Estimating the Cost of Setting Up
Setting up as a self-employed hairdresser doesn’t need to cost a fortune, but some initial investment is required. Brushes, combs, scissors, styling tools, and consumables such as shampoo and towels can add up. If you are going mobile, you may also need storage boxes, a portable mirror, and a foldable chair.
If you are setting up at home, you might need to purchase a professional basin, wall-mounted mirrors, and salon furniture. These items can range in price depending on quality, brand, and whether you choose to buy new or second-hand.
Many of these items are considered capital purchases or allowable expenses, which means they can be deducted from your taxable income when you complete your Self Assessment return. This helps reduce your overall tax liability and makes it easier to recoup some of your initial investment over time.
Claiming Business Expenses and Managing Receipts
Understanding what you can and can’t claim as business expenses is a crucial part of being self-employed. The cost of your tools, supplies, and chair rental fees are typically considered legitimate expenses. If you subscribe to professional magazines, attend industry events, or enroll in training courses to develop your skills, these costs may also be claimed.
If you travel for work, such as visiting clients in their homes or attending trade shows, you may be eligible to claim travel expenses. The standard mileage rate for business travel is 45 pence per mile for the first 10,000 miles in a tax year and 25 pence per mile thereafter. This rate includes fuel, wear and tear, and insurance.
It’s important to keep detailed records. Maintain a log of your business mileage and hold on to any receipts for purchases or services used in the course of your work. This includes receipts for equipment, cleaning supplies, promotional materials, and any software or subscriptions you use to manage your bookings or accounts.
By recording your income and expenses regularly, you’ll make it much easier to complete your annual Self Assessment tax return. Proper record-keeping also helps you better understand your profit margins and make smarter decisions about pricing and expenditure.
Setting Your Prices and Managing Income
Pricing your services is another important aspect of self-employment. How much you charge will depend on your experience, location, target clientele, and whether you’re providing salon-based, home-based, or mobile services. When setting your rates, consider not just your time, but also the cost of supplies, travel, and other overheads.
As your business grows, managing your income becomes more complex. You may have weeks with lots of bookings and others that are quiet. Building a buffer or emergency fund can help you manage irregular income and stay financially stable during slower periods.
Cash flow is key. Make sure you set aside enough each month to cover your tax bill, which is due by 31st January each year. If you earn more than £1,000 from self-employment, you must file a Self Assessment tax return even if you believe you will not owe tax. The system will calculate any Income Tax and National Insurance contributions based on your reported profit.
Developing a Pricing Strategy That Reflects Your Value
One of the most challenging decisions for a self-employed hairdresser is how to set fair and competitive prices. You’re not just charging for your time—you’re also covering the cost of tools, products, travel (if mobile), rent (if chair-based), and your expertise. If you undercharge, your income might not cover your expenses. If you overcharge, you risk losing clients to competitors.
Start by researching local prices. Look at salons and freelancers in your area who offer similar services and gauge the average range for cuts, colouring, and styling. Factor in your experience and specialisations when positioning yourself. A newly qualified stylist might need to charge a bit less to attract early clients, while a hairdresser with years of experience or a niche skill—such as bridal hair or balayage—can reasonably command higher fees.
It’s also worth considering different pricing structures. You may choose to offer packages (such as a cut and blow-dry combo), student or senior discounts during quieter periods, or loyalty pricing for long-term clients. Clearly displaying your prices on your website or booking page helps set expectations and builds trust with prospective clients.
Tracking Your Income and Avoiding Common Financial Pitfalls
When you begin working independently, it can be easy to lose track of income—especially if you’re being paid in cash. However, it’s essential to document every transaction accurately, whether you’re taking payments via card, cash, or bank transfer. Establishing a consistent method of logging income helps you stay on top of your business performance and simplifies your Self Assessment return.
Consider using a digital spreadsheet or an app to record income daily or weekly. Make sure to include dates, services performed, prices charged, and whether the payment has been received. If you’re accepting cash, deposit it into your bank account regularly so it forms a clear paper trail in case of an audit.
Many self-employed hairdressers underestimate their annual income, especially if they haven’t kept clear records. This can lead to underpaying taxes or being surprised by a larger-than-expected tax bill. To avoid this, it’s helpful to set aside a percentage of each payment—commonly around 20 to 30 percent—into a separate account dedicated to tax. This ensures you’re prepared when payment deadlines arrive.
Building a Personal Brand in the Hairdressing Industry
Branding isn’t just for big companies. Even as a sole trader, your brand represents your business identity. It includes everything from the way you present yourself to how you communicate with clients and what your visual materials look like. A consistent and appealing brand helps attract new clients and encourages existing ones to recommend your services.
Start by defining your unique selling point. Are you a colour expert? Do you specialise in natural curls or vintage styling? Perhaps you’re known for friendly service or exceptional consultations. Whatever sets you apart should form the core of your brand messaging.
Once your brand identity is clear, develop consistent visuals. Choose a colour palette, font, and logo that reflect your style. Use these consistently across your appointment cards, business cards, social media platforms, and websites. High-quality images of your work, preferably taken in good lighting, are vital to showcasing your abilities. Before-and-after shots can be particularly effective.
Clients will often choose a stylist based on personality as well as skill, so showing a bit of who you are online can help you connect. Regular social media posts with a friendly tone, behind-the-scenes updates, or short styling videos can all build rapport and visibility.
Establishing an Online Presence and Marketing Your Services
An effective online presence helps your business grow by reaching new clients and keeping existing ones engaged. In today’s digital-first world, potential customers often look online for hairdressers in their area, and your presence—or absence—can make or break their decision.
Start by setting up a website or landing page that includes your services, pricing, location, booking options, and contact information. A simple layout with high-resolution images of your work and testimonials from clients can build trust instantly. If building a website feels too complex, consider using a booking platform that includes a profile page for your services.
Social media is another crucial marketing tool. Platforms like Instagram and Facebook are ideal for showcasing your work. Post consistently and use relevant local hashtags to help people in your area discover your services. Encourage happy clients to tag you in their posts or leave reviews on your profile. This word-of-mouth marketing is invaluable.
You can also experiment with paid ads. For example, Facebook and Instagram ads can be targeted to people in specific areas or age groups who may be looking for hair services. Keep your promotions simple and visual—images of your styling results work better than text-heavy posts.
If you’re starting out or trying to boost your bookings, consider special introductory offers or referral bonuses. Even something as simple as offering 10 percent off for new clients or rewarding returning customers with a free treatment after five appointments can encourage regular business.
Building Client Relationships That Last
Long-term success in hairdressing depends not only on technical skill but also on your ability to build strong relationships. Clients often return to the same stylist because they feel comfortable, valued, and confident in the results. By creating a positive experience every time, you can boost your client retention and benefit from valuable word-of-mouth recommendations.
Punctuality, communication, and attention to detail all contribute to client satisfaction. Be sure to confirm appointments in advance, take time during consultations to understand exactly what your client wants, and offer professional advice where needed. A great client experience often includes small touches—remembering someone’s preferred drink, asking how a past style worked out for them, or following up with a message after a new haircut.
Offering an easy way to rebook also makes it more likely that clients will return. Whether it’s an online booking link or a paper reminder card, prompting a future appointment before the client leaves can help fill your calendar.
Listening and engaging with clients beyond the basics of the appointment—such as remembering family names, previous holidays, or key events—fosters trust and comfort. This relationship-building is one of the reasons many clients stay with a stylist for years.
Managing Appointments and Daily Workflow
An efficient appointment system is essential for managing time and preventing no-shows. Whether you use a manual diary or an online calendar, you’ll need a process that helps you stay organised while also being easy for clients to understand.
Online booking platforms offer the advantage of sending automatic reminders, allowing clients to view availability, and even taking deposits to secure appointments. This reduces no-shows and late cancellations, which can be especially damaging to sole traders.
Time management is just as important. If your appointments are too tightly packed, a single delay can throw off your whole day. Build in a buffer between appointments to allow for unexpected delays or additional client needs. This also gives you time to clean your tools, take notes, or simply catch your breath.
Set aside time for admin work as well. Evenings or a quiet weekday afternoon might be suitable for reviewing your finances, restocking products, or catching up on emails. A consistent workflow helps prevent burnout and ensures you’re maintaining a high standard of service.
Encouraging Referrals and Growing Your Client Base
Referral business can be one of the most reliable ways to grow. People are far more likely to trust a recommendation from someone they know than to pick a stylist at random. By encouraging your existing clients to refer others, you can grow steadily without spending heavily on advertising.
One way to do this is by offering referral incentives. This could be a discount on the next appointment, a free product sample, or entry into a giveaway for every referral made. Make sure your clients know this offer exists by mentioning it during their appointment or including it in a follow-up message.
You can also partner with local businesses. If there’s a nail salon, coffee shop, or bridal boutique nearby, explore the possibility of exchanging flyers or offering joint promotions. These partnerships can introduce your services to new audiences while building goodwill within the local business community.
Another useful approach is asking happy clients for reviews. A quick Google review or a recommendation on social media can reach dozens of potential new clients. Encourage feedback by sending a message after each appointment and thanking the client personally if they leave a comment.
Managing Stock and Reordering Products
Keeping track of your supplies is essential if you want to deliver a consistent, high-quality service. Running out of key products can disrupt your appointments and impact your professional reputation. Develop a basic stock management system that tracks usage and signals when it’s time to reorder.
Start by creating a list of all the products you regularly use, from shampoos and conditioners to colour treatments, brushes, gloves, and sanitising supplies. Note how frequently you need to restock each item and set minimum quantity thresholds.
Some hairdressers choose to buy in bulk to save money, especially on non-perishable items like towels, gloves, and capes. However, be mindful of storage space and expiry dates. If you’re just starting out, smaller quantities may make more sense to avoid overstocking or waste.
Consider keeping a separate stock of retail products if you plan to sell directly to clients. Offering salon-quality shampoos or treatments can increase your income and enhance the service you provide. Be sure to monitor inventory closely and adjust your prices to reflect supplier costs and delivery charges.
Learning and Growing in Your Career
The hairdressing industry continues to evolve with new techniques, products, and trends. Continuous learning helps you stay competitive and keeps your skills fresh. Whether it’s attending training workshops, watching online tutorials, or subscribing to trade publications, keeping up with changes in the industry is part of staying relevant.
Consider investing in courses that align with your interests, such as colour correction, hair extensions, or textured hair care. These skills can broaden the range of services you offer and position you as a specialist in your area.
Networking with other professionals can also be beneficial. Join online forums, local business groups, or attend industry events where you can exchange ideas, ask for advice, and learn from others. Collaboration and community are especially important when you work solo, as they provide support and motivation when challenges arise.
Understanding Your Tax Responsibilities
Being self-employed means you are responsible for your own taxes. As a hairdresser, this involves more than just setting aside money at the end of the year. You need to track your income, log expenses, and ensure your tax return is submitted accurately and on time. This might seem overwhelming at first, but once you understand the basics, it becomes a routine part of managing your business.
The tax year in the UK runs from 6 April to 5 April the following year. If you earned more than £1,000 from self-employment during that period, you are required to complete a Self Assessment tax return. This applies whether your work is full-time or part-time and regardless of whether your earnings fall below the personal allowance threshold.
It is your responsibility to keep accurate records of your income and expenses throughout the year. This helps ensure your return is correct and reduces the risk of overpaying or underpaying tax. Failure to submit your return by the 31 January deadline following the end of the tax year can result in automatic fines, even if you owe no tax.
Filing a Self Assessment Tax Return
Filing your Self Assessment tax return involves reporting your self-employed income and expenses. If you’re new to the process, it’s helpful to start by gathering all the necessary financial records. These typically include invoices issued to clients, receipts for purchases, mileage logs, bank statements, and any relevant correspondence from HMRC.
You can complete your return online via the HMRC portal. If you’ve already registered as self-employed and received your Unique Taxpayer Reference number, you’ll be able to log in and start your submission. The system will guide you through a series of sections asking about your business income, any additional income (such as interest or dividends), and your allowable expenses.
Allowable expenses are deducted from your total income to calculate your taxable profit. Once your return is submitted, HMRC will calculate how much Income Tax and National Insurance you owe. If your tax bill exceeds £1,000, you may also be required to make payments on account toward the following year’s tax.
It’s worth noting that filing early does not mean you have to pay early. You’ll simply have more time to plan for the payment deadline, which is also 31 January. The second payment on account, if required, is due by 31 July.
What Counts as Allowable Expenses
Allowable expenses are the business costs you can deduct from your income to reduce your taxable profit. For a self-employed hairdresser, these can be substantial and make a real difference in how much tax you ultimately owe.
The most common allowable expenses include tools and equipment, such as scissors, combs, hairdryers, straighteners, curling tools, and brushes. Consumables like shampoos, conditioners, hair dyes, foils, and towels also fall into this category, as they are essential for delivering your services.
If you rent a chair in a salon, the rent you pay is an allowable expense. This also applies to utility contributions or cleaning fees if you are responsible for them as part of your rental agreement. Mobile hairdressers can claim vehicle-related expenses, such as fuel, insurance, servicing, and MOT costs, using either the actual cost method or the simplified mileage method. The standard mileage rate is 45p per mile for the first 10,000 miles in a tax year, and 25p per mile thereafter.
You may also be able to claim a portion of your phone bill if it’s used for business, as well as stationery, advertising, website hosting, booking software, and training courses related to your profession. Subscriptions to trade magazines or membership fees for professional bodies may also be deductible.
Home-Based Hairdressers and Business Use of Home
If you work from home, you may be entitled to claim a portion of your household expenses. This includes a share of your electricity, gas, water, council tax, rent or mortgage interest, and internet if these are used to support your business activities.
There are two main methods to calculate these costs: the actual cost method and the simplified expenses method. With the actual cost method, you work out what proportion of your home is used for work and how long it’s used each day. You then apply this percentage to each eligible bill. For example, if you use one room in a five-room house for eight hours a day, five days a week, you might claim a proportional share of your utility costs.
The simplified expenses method offers a flat-rate deduction based on how many hours you work from home per month. This approach is easier to apply, but it might result in a lower deduction than the actual method, especially if your usage is high. Choosing the right method depends on your specific circumstances.
If you convert a room specifically for use as a salon, make sure you document all renovation or equipment costs separately, as some may be considered capital expenses and subject to different rules.
Disallowable Expenses You Should Avoid Claiming
Not every expense is allowable. Some costs might feel business-related but don’t qualify under HMRC’s criteria. For example, everyday clothing—even if worn for work—is not considered a business expense unless it is a uniform or protective clothing specifically required for the job.
Client entertainment, fines, and personal expenses such as holidays, personal grooming, or home décor (even for your salon space) are also non-deductible. Travel from home to a regular place of business, such as a rented salon chair, is considered commuting and cannot be claimed as an expense.
It’s important to separate personal and business costs clearly. If an expense is partly business and partly personal—such as a phone or internet bill—you should only claim the business portion. Keeping detailed records helps justify your claims if HMRC requests additional information.
Keeping Accurate Records Throughout the Year
One of the biggest mistakes self-employed hairdressers make is failing to keep records in real time. Waiting until the end of the tax year to gather receipts and work out mileage often leads to missed claims, inaccurate reporting, and increased stress.
Create a routine for logging income and expenses weekly or monthly. Store your receipts in a safe place and back them up digitally where possible. Keep a separate business bank account if you can, as this simplifies tracking and makes it easier to distinguish personal and professional spending.
Using spreadsheets or simple accounting software can make a big difference. Not only do they help you stay organised, but they also give you visibility over your profit margins and allow you to forecast your tax bill before the deadline. This is especially useful if your income fluctuates throughout the year or if you plan to grow your business and need to reinvest profits.
Understanding National Insurance Contributions
In addition to Income Tax, self-employed individuals are responsible for paying National Insurance. This helps fund state benefits and the NHS, and your contributions count toward your entitlement to the State Pension and other benefits.
There are two main types of National Insurance contributions for self-employed people: Class 2 and Class 4. Class 2 contributions are a flat weekly rate paid if your profits exceed a certain threshold. Class 4 contributions are calculated as a percentage of your annual profits and are paid alongside your Income Tax through Self Assessment.
If your profits fall below the threshold, you may choose to make voluntary Class 2 contributions to maintain your record. This can be important if you want to qualify for state benefits later on, such as maternity allowance or pension entitlements.
It’s important to understand that National Insurance is separate from your Income Tax. When you file your Self Assessment return, both will be calculated together, and you’ll be given a total amount to pay. You can make the payment online, via direct debit, or through other accepted payment methods.
Payments on Account and How They Work
Once your business becomes established and your tax bill exceeds £1,000, you may be required to make payments on account. This is HMRC’s way of ensuring you stay on top of your tax bill for the following year. Rather than paying everything in one go, you make two payments in advance—one by 31 January and another by 31 July.
Each payment on account is half of your previous year’s tax bill. When you submit the next year’s return, if you owe more, you’ll make a balancing payment. If you overpaid, you’ll receive a refund or a credit toward the following year’s tax.
It’s important to plan ahead for these additional payments. Many new self-employed professionals are caught off guard by the second payment in July, especially during quieter months. Building a savings buffer and setting aside money from each payment you receive will help avoid cash flow issues when these deadlines arrive.
Preparing for a Potential HMRC Review
Although most tax returns are processed without issue, HMRC has the right to open a compliance check if they suspect something is incorrect or inconsistent in your return. This might involve a request for further information, a review of your expenses, or a detailed audit.
To prepare for this possibility, it’s essential to keep complete and accurate records. This includes copies of invoices, receipts, bank statements, and mileage logs. Keep these records for at least five years after the 31 January deadline following the tax year in question.
It’s also good practice to document your reasoning for expense claims, especially for anything that could fall into a grey area. If you’ve used your personal vehicle for both business and personal use, a mileage log showing date, purpose of trip, and distance will help justify your claim. Being organised, transparent, and responsive during a compliance check reduces the likelihood of fines or adjustments and ensures the process is resolved smoothly.
Planning for Business Growth and Long-Term Success
As your client base grows and your income increases, you may want to explore ways to improve your business further. This could include expanding your services, hiring an assistant, or investing in a larger workspace. Each step requires additional planning, both financially and logistically.
It’s wise to revisit your pricing, expenses, and tax planning strategy each year. You may benefit from additional training, new technology, or specialist support from an accountant. As your turnover rises, you’ll also need to monitor whether you’re approaching the VAT registration threshold, which currently stands at £90,000.
A long-term mindset involves more than financial goals. Consider how you want your career to evolve, how many hours you want to work, and whether you plan to remain independent or build a team. Having a clear vision for the future will guide your decision-making and help you structure your business in a way that aligns with your personal and professional goals.
Conclusion
Becoming a self-employed hairdresser in the UK offers an exciting blend of creative freedom, personal independence, and the potential for long-term financial success. However, it also requires you to take on a wide range of responsibilities beyond the salon chair. From registering with HMRC and understanding your tax obligations to managing appointments, pricing services, and building a loyal client base, the role demands more than just technical skill.
Starting out may seem overwhelming, especially when the financial and administrative elements were not part of your original training. But by taking the time to understand how to register correctly, track your income and expenses, claim allowable costs, and meet your filing deadlines, you lay the foundation for a stable and compliant business.
Equipping yourself properly, keeping detailed records, and investing in tools or training can all be used to reduce your taxable profits, making self-employment more sustainable in the long run. Meanwhile, developing a clear brand, building strong relationships with your clients, and embracing marketing strategies can help grow your business steadily and professionally.
Being self-employed puts you in charge of your career. It gives you the opportunity to decide how, where, and when you work, while allowing you to shape your services around your skills and goals. With a proactive approach to managing your finances and a commitment to continued learning, you can ensure that your journey as a self-employed hairdresser is both rewarding and successful.
Whether you’re just starting your journey or looking to take your hairdressing business to the next level, understanding the financial, legal, and operational aspects is crucial. By staying organised, remaining informed, and planning ahead, you’ll be well-equipped to build a thriving career in the ever-evolving world of hairdressing.