BIRDS ACCOUNTANTS
BIRDS ACCOUNTANTS
Hairdressers · barbers · chair renters · mobile stylists · UK-wide
Chair rent, tips, kit and mileage, explained simply, so you pay the right tax and claim every cost.
Written by Nicola Bird, CIMA-qualified accountant. Last checked 10 November 2026.
If you rent a chair, set your own prices, keep your own client list and choose your hours, you are usually self-employed. If the salon sets your hours, prices and clients and pays you a wage, you are usually an employee and tax comes off through PAYE. Some stylists have both: a salon job and private clients on the side. In that case only the side income goes on your tax return.
Cash takings count just as much as card payments. Keep a simple daily record of both.
If you travel to clients, you can claim business mileage using HMRC's simplified rates: 45p a mile for the first 10,000 business miles in the tax year, then 25p a mile. That covers fuel, insurance, servicing and wear and tear, so you cannot also claim those running costs. Alternatively you can claim the business share of your actual car costs. Keep a mileage log with dates, clients and miles. Normal travel from home to a fixed salon you work at every day is not claimable.
If you see clients in a room at home, you can claim a share of heating, electricity and similar bills, or HMRC's flat rate: £10 a month for 25 to 50 hours of business use, £18 for 51 to 100 hours and £26 for 101 hours or more.
These are the rates for England, Wales and Northern Ireland. Scotland has its own Income Tax bands, but National Insurance and the allowances are the same.
| 2025/26 | 2026/27 | |
|---|---|---|
| Trading allowance (gross self-employed income) | £1,000 | £1,000 |
| Personal Allowance (tax-free income) | £12,570 | £12,570 |
| Income Tax basic rate (£12,571 to £50,270) | 20% | 20% |
| Income Tax higher rate (£50,271 to £125,140) | 40% | 40% |
| Class 4 National Insurance on profits £12,570 to £50,270 | 6% | 6% |
| Class 4 National Insurance on profits over £50,270 | 2% | 2% |
| Class 2 small profits threshold (Class 2 treated as paid above this) | £6,845 | £7,105 |
| Voluntary Class 2 if profits are below the threshold | £3.50 a week | £3.65 a week |
Making Tax Digital for Income Tax: if your qualifying income (self-employment plus property, before expenses) was over £50,000 in 2024/25, you have had to use it since 6 April 2026. Over £30,000 in 2025/26 means you start on 6 April 2027, and over £20,000 in 2026/27 means you start on 6 April 2028. Sources: GOV.UK National Insurance rates, GOV.UK Income Tax rates, GOV.UK Making Tax Digital.
Yes. If you are self-employed, tips are part of your business income and go on your tax return with the rest of your takings.
Yes. If you are self-employed and rent a chair or room to see your own clients, the rent is an allowable business expense.
Yes. Tools and equipment you use for work can usually be claimed in full in the year you buy them.
Using HMRC's simplified rates, 45p a mile for the first 10,000 business miles in a tax year and 25p a mile after that. Keep a mileage log.
Yes, if your hairdressing income is over £1,000 in a tax year before costs. Register for Self Assessment and report it alongside your job.
For 2026/27, most people pay nothing on the first £12,570. Above that, Income Tax is 20% and Class 4 National Insurance is 6% on profits up to £50,270 in England, Wales and Northern Ireland.
See fixed prices Ask me a question
Related: Accountant for beauticians and hairdressers · What's new for beauty · Tax Buddy app
This page is general information, not tax advice. Get in touch about your own situation.
Message me for a free, friendly chat. No obligation, no jargon.