Making Tax Digital for Hairdressers & Barbers — A Simple Guide

If you're a self-employed hairdresser, barber, or beauty therapist — whether you rent a chair, work mobile, or run your own salon as a sole trader — Making Tax Digital for Income Tax is going to affect you.

From April 2026, sole traders earning over £50,000 must submit quarterly updates to HMRC digitally. The threshold drops to £30,000 in 2027 and £20,000 in 2028.

Does this apply to me?

It depends on how you work:

• Self-employed chair renter — yes, if your gross income is over the threshold
• Mobile hairdresser or barber — yes, same rules
• Sole trader salon owner — yes
• Employed by a salon — no, MTD for Income Tax is for self-employed people only
• Limited company — no, this is for sole traders

Remember: HMRC uses your gross income (total takings), not your profit. If your total client payments come to £55,000 but you pay £15,000 in chair rent and £5,000 in products, your profit is £35,000 — but your turnover is £55,000, putting you in scope from April 2026. This catches more hairdressers than people expect.

Already VAT registered? If you charge VAT, you're probably already using MTD-compatible software for your VAT returns. That software may also handle MTD for Income Tax — check with your provider. Flonancial is bridging software for people who aren't already using accounting software.

What changes?

Instead of totalling everything up once a year for Self Assessment, you'll send HMRC a quarterly summary: your total income, your total expenses, and any other business income. You still do your annual return — these updates are in addition to that.

You are not paying tax quarterly. The updates are reporting only. Your tax bill is still calculated and settled annually.

What records do I need to keep?

Digital records of every transaction — date, amount, and what it was. A spreadsheet is fine. A paper appointment diary on its own isn't — it needs to be digital.

Common expenses in hairdressing and barbering

• Chair rental or salon rent
• Products for use on clients (colour, shampoo, conditioner, styling products)
• Products bought for resale to clients
• Equipment purchases (dryers, straighteners, clippers, scissors, trolleys)
• Insurance (public liability, professional indemnity)
• Training, courses, and CPD
• Phone costs (business use)
• Travel costs if you're mobile (fuel, mileage, parking)
• Laundry costs for towels and uniforms
• Aprons and protective wear
• Card machine or payment app fees
• Trade publications and subscriptions
• Advertising and marketing

One thing to watch: personal grooming products you buy for yourself are not business expenses, even if you use them at work. Only products used on clients or bought specifically for the business count.

Recording income

Whether clients pay by card, bank transfer, or cash, it all counts as income and all needs recording. The simplest approach is to log your daily takings in a spreadsheet at the end of each day — total amount and how it was received. Don't leave it to the end of the week or month if you can help it.

If you use a booking system that tracks payments, you may already have most of the data you need — you just need to make sure it includes all income, not just card payments.

Do I need accounting software?

No. If you keep your records in a spreadsheet, bridging software can submit your quarterly totals to HMRC. You don't need to switch to a full accounting platform or pay a monthly subscription.

Flonancial is free bridging software — upload your spreadsheet, pick your totals, and submit. That's the whole process.

Getting started

If you already track your income and expenses in a spreadsheet, you're set. If you don't, download the free Flonancial spreadsheet template — it's already set up with income and expense columns and a Flo tab that auto-calculates your totals for HMRC. Create a free Flonancial account, upload the spreadsheet when it's time, and submit your quarterly updates in minutes.