How much tax should a hairdresser set aside? Tax and allowable expenses for 2025/26
Plenty of hairdressers rent a chair and run their own client book, which can make them self-employed even though they work in someone else's salon. Whether that is you depends on your contract and how you work; if you are self-employed, the figures on this page apply.
What the tax looks like
Using the 2025/26 rates (England, Wales or Northern Ireland, no other income), a hairdresser with £30,000 of takings and £5,500 of allowable costs has £24,500 of profit and about £3,102 of income tax and Class 4 National Insurance for the year, roughly £258 a month. The figures are an illustration, not an average for the trade. Tax is on profit, not takings.
| Profit for the year | Income tax + Class 4 NI | Per month | Per £1 of profit |
|---|---|---|---|
| £15,000 | £631.80 | £53 | 4p |
| £24,500 | £3,101.80 | £258 | 13p |
| £37,000 | £6,351.80 | £529 | 17p |
Open the calculator already filled in with this example and change the two numbers to yours. It also shows the January and July payment dates.
Costs a hairdresser usually claims
Claim only what you actually spent on the business, and only the business share of anything you also use personally.
- Chair or room rent: the fixed weekly or monthly fee you pay the salon.
- Colour, products and consumables bought for clients: tints, developers, towels, gowns, foils.
- Tools: scissors, clippers, dryers, straighteners. Replacement of small tools is a running cost.
- Insurance: treatment and public liability cover.
- Training and courses in the work you already do.
- Card machine fees and booking-app fees.
The general list is on GOV.UK: self-employed expenses you can claim, and what you can't. If your costs for the year are under £1,000, the trading allowance may leave you less tax.
Working from home or visiting clients
If you cut hair at home some of your home costs can be claimed. HMRC's simplified flat rate depends on the hours you spend on the business at home each month: £10 for 25 hours or more, £18 for 51 hours or more and £26 for 101 hours or more (HMRC's manual, last updated 4 August 2026). The alternative is to work out a reasonable share of the actual costs. Check the manual before mixing the two. For mobile appointments, the flat mileage rate for a car is 45p a mile before 6 April 2026 and 55p for the first 10,000 miles after, then 25p. Wear, uniform and everyday clothing are different: only protective or uniform clothing counts.
VAT
Chair rent and client payments both count towards the £90,000 turnover you'd have to register for VAT at, but most hairdressers are well under it.
Records worth keeping
- Write down the client, the service and what they paid at the end of each day, including tips handed to you in cash.
- Keep a separate folder for product receipts. A £400 wholesale order is easier to claim with the invoice.
- If you work at home, log the hours: the flat rate bands depend on them.
- Separate card-reader payouts from the sales they cover; the payout is net of fees.
A good fit for chair-rent hairdressers: income per client, costs by category, no accounting software: the SortedDesk Self Assessment Spreadsheet is a one-off £4.99 download for Excel and Google Sheets. It is a spreadsheet only: nothing here files anything with HMRC, and the sheet doesn't replace an accountant if your case is complicated.
Dates matter too: the 2025/26 return and tax are due on 31 January 2027, and payments on account can make that January bigger than the year's bill.
This is a planning guide, not tax advice. Figures worked with the calculator's 2025/26 rules, and GOV.UK sources read on 21 October 2026: Expenses if you're self-employed, Business income manual BIM75010, Simplified expenses: vehicles, When to register for VAT.
Try the calculator with this example