Are you the barber or the hairdresser who is residing in the UK and offering services as a self-employed one as well? Well, you must be worried about paying the tax as the tax margin is very slim when it comes to HMRC in the UK. There is no apparent way to find an escape from this tax implication. So it is better to accept the liability and get yourself aware of the tax guide for self-employed hairdressers that you will have to follow for paying the tax. This will help you to be tax efficient in this regard. So it is advisable for professionals to gather information about how much money you have as tax, where are you going to pay the tax, what the required documents are to complete the process, and how will you pay the tax.

The good news is that you do not have to struggle through the government gateway and come back with feelings of dread and confusion. This does not matter whether you are a self-employed hairdresser who is working in a salon or offering your services privately, the main thing you are obliged to do is to declare your income to HMRC. Let us get into the discussion to know further about the details.

Reach out to one of our professionals to get to know what is the best way to handle the queries about tax guides for self-employed hairdressers for your earnings in the UK.

How to Pay the Tax for being a Self-Employed Hairdresser in the UK?

Just like the case of a sole trader working in the UK, the first thing you will have to do is to immediately declare your income to HMRC. This is to be done along with the information that you are a self-employed individual. You will do it through the process of self-assessment. This process is done to actually inform HMRC that here you are working, how much you are earning, and how often you are being paid. This will help HMRC to know all the untaxed earnings. For self-assessment registration, you will have to follow the deadline of 5th October in a given tax year.

Moreover, you should have your UTR which is a unique taxpayer number to pay the tax. After the process of self-assessment registration is done, you will get your UTR in the post sent by HMRC. 31st January is the deadline to pay your tax bills. This will be followed in the year following the tax year that you are obliged to pay for.

What are the Required Documents to Pay the Tax as a Self-Employed Hairdresser?

The most important thing is to provide evidence of your income. This will also require the documents if you expect to deduct any kind of expenses. This is to make you realise the importance of making a record of everything that you are earning and spending as well. This can easily be done as there are several options to keep records on track these days. You can do it by invoicing, making the records by uploading them on online platforms, and making your own spreadsheets. You should expect HMRC can ask for this evidence of your income and expenses for a period of 22 months. This is why ensure to keep the records of the following:

• Expenses and income from your business
• The hire of the chair for business purposes
• The rent of the premises
• The receipts of travel
• The receipts of the customer cuts
• The invoices for the jobs

Where Will I Pay the Tax and How Much Do I Owe?

Now you must be wondering about where to pay once you are done with the preparation of all the required documents. There are multiple options to pay your tax bills.

1. Take help from your personal account to pay the tax bills.
2. Get in touch with HMRC yourself to pay your tax bills.
3. You can even hire an online tax provider to pay your tax bills.
4. If you have set up your direct debit with HMRC, you can use this way to pay your tax bills.
5. You can even use the option of BACS with your credit card or by using the option of the cheque.

Moreover, the amount you owe to HMRC as your tax bill depends on the number of your earnings. You should be aware of the three types of taxes. This includes class 4 national insurance, class 2 national insurance, and income tax. Income tax is known to be the variable that your earnings will decide how much you will pay. However, when you start to earn over the limit of figure £12,570 (from April 2023), you will have to pay national insurance for class 2 and class 4.

The Bottom Line

Now that you have gathered a fair amount of information about the tax guides for self-employed hairdressers, we can bring the discussion towards wrapping up. Being a self-employed hairdresser and dealing with your tax implications in the UK is time-consuming and a difficult process for many people. Especially when you are a beginner and going it for the forts time. It is advisable to approach a professional for this purpose and take their help for an accurate process to be followed. Moreover, there are multiple other options to follow. You can check what is the best option according to your circumstances and pick the right option to pay your tax bills. We hope these few minutes of reading have helped to develop a better understanding of the tax guide for self-employed hairdressers and relevant facts. This will help you in future to handle your tax affairs efficiently.

Get in touch with our young, clever, and tech-driven professionals if you want to choose the best guide for self-employed hairdressers in the UK  for your income. Contact now!

Disclaimer: The information about the tax guide for self-employed hairdressers provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.