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Part of Accotax, an ICAEW regulated firm. Offices in Morden, Croydon, Chelsea and Mitcham.

0203 4411 258[email protected]

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Accountants for hairdressers and beauty salons

Salons mix employed stylists, renters and treatment rooms, each with different tax rules. Getting the status of each person right protects you from a costly challenge.

  • Bookkeeping
  • Payroll for limited companies
  • VAT returns and registration

What does an accountant do for hairdressers and beauty salons?

Salon accountants handle payroll for employed staff, the paperwork for self-employed chair renters, product stock, VAT and cash takings. Most salons need the Complete package at £62.50 + VAT a month.

What is different for you.

The parts of the rules that matter most for this kind of company.

01

Employed or chair renter

Someone who rents a chair and sets their own prices and hours can be self-employed, but control and tools can point to employment. We document each arrangement.

02

Products and consumables

Colour, retail products and disposables must be costed so treatment prices cover them.

03

Cash and card takings

Daily takings and tips need clean records, with tips passed on in line with the law.

04

Deposits and bookings

Booking deposits and gift vouchers have their own VAT and revenue timing rules.

How the work differs for hairdressers and beauty salons.

The parts of the job that matter most for this kind of company, and how we handle them.

01

Employed, self-employed or chair rental

Salons use several models side by side: employed stylists, self-employed stylists who pay a commission and chair or room renters who run their own business. HMRC looks at control, who sets prices and hours, who supplies tools and who carries financial risk, not at what the contract says.

We review each person's real arrangement, write the right paperwork and set up payroll or invoicing accordingly.

  • Status reviewed for each person
  • Contracts matched to the reality
  • Payroll or invoicing set up
02

Products, treatments and pricing

A colour service uses product by the gram, and retail stock sits on the shelf. We cost treatments including consumables, so each service price covers what goes into it, and we track retail stock separately from consumables.

A monthly view of revenue per chair and per treatment shows which services earn their space.

  • Treatment costing
  • Retail stock separate from consumables
  • Revenue per chair
03

Deposits, vouchers and cash

Booking deposits and gift vouchers are paid before the service is delivered, so they are recognised when the service is done, with the right VAT timing. Cash and card takings are reconciled daily, and tips are recorded and passed on in line with the law.

A salon can pass the VAT threshold quickly when busy, so we watch the rolling twelve-month figure.

  • Deposits and vouchers treated correctly
  • Daily takings reconciled
  • VAT threshold monitored monthly

The usual way, and ours.

Typical salon admin

  • Status never reviewed
  • Treatment prices set by feel
  • Vouchers booked as income on sale
  • VAT noticed late

With us

  • Each arrangement documented
  • Treatments costed
  • Deposits and vouchers deferred
  • Threshold watched monthly

Rules to watch.

Rule

VAT threshold

A busy salon can reach £90,000 of takings quickly, so registration is monitored monthly.

Your year with us.

What happens, and when.

  1. DailyTakings and tips recorded.
  2. MonthlyChair rent, payroll and product costs.
  3. QuarterlyVAT if registered.
  4. Year endAccounts, tax and status review.

Mistakes we prevent.

Avoided

Treating everyone as self-employed

Control and tools can mean a stylist is an employee, with back tax to pay if wrong.

Avoided

No treatment costing

Under-priced colour services can quietly lose money.

Avoided

Ignoring VAT growth

A successful salon can cross the threshold sooner than planned.

Fixed fees for hairdressers and beauty salons.

Prices exclude VAT. Final price depends on turnover and options.

Essential

Micro and new companies

£45.83a month + VAT

  • Statutory accounts
  • Corporation Tax return (CT600)
  • Confirmation statement
  • One director Self Assessment
  • Deadline reminders
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Recommended

Complete

Trading and online businesses

£62.50a month + VAT

  • Everything in Essential
  • Monthly bookkeeping
  • Quarterly MTD VAT returns
  • Director payroll and RTI
  • Quarterly review call
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Growth

Growing, data-led teams

£75a month + VAT

  • Everything in Complete
  • Payroll for up to 5 employees
  • Priority accountant access
  • Quarterly tax planning
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Rated 4.9 out of 5.

“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo AlvarezGoogle review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael LeboucherGoogle review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur LimanGoogle review of Accotax
“He took care of everything promptly and kept me informed throughout, which was greatly appreciated.”
SofiaGoogle review of Accotax
“It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about.”
Jamie FletcherGoogle review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
Sergey MGoogle review of Accotax

Hairdressers and beauty salons: questions.

Are chair renters self-employed?

They can be, if they run their own business, set prices and take the risk. HMRC looks at the reality, so we document each arrangement.

Accounts for hairdressers and beauty salons, sorted.

Tell us about your company and we will confirm your fixed fee within one working day.