Hair & beauty pros, determine employment status for tax with this HMRC guidance

HM Revenue and Customs (HMRC) has published guidance to help UK hair and beauty professionals determine their employment status for tax purposes.

Designed to particularly support workers renting a chair or space within a salon, the guidance compiles easy-to-follow information about common hair and beauty working practices and how they relate to employment status. This includes who sets working times and prices, and who provides clients and products.

It outlines how HMRC’s Check Employment Status for Tax (CEST) tool can help determine whether an individual is employed or self-employed for tax purposes.

The guidance also includes a video (shown below), detailing the different tax obligations for employed and self-employed pros, alongside information about VAT registration requirements and the importance of written agreements when renting salon space.

Kelvin Shorte, deputy director of taskforces & specialist compliance at HMRC, comments: “We understand that the hair and beauty industry operates with various working arrangements, and it’s vital that both salon owners and professionals get their tax status right. This new guidance responds directly to requests from the industry for clearer, sector-specific information.

“Whether you’re a salon owner with staff or someone who rents out chairs in your premises, this guidance will help you understand your obligations, so you can get your tax right first time.”

Click here to check out the guidance.