Tax Advice for Self Employed Mobile Hairdressers

Mobile Hairdressing is a flexible way to earn money, without the constraints of working in a salon.  Going self employed is a really easy way to start your career as a mobile hairdresser and here is a tax advice guide to help you along.

How to Register with HMRC as a Self Employed Mobile Hairdresser

When you are self employed you are responsible for your own taxes and national insurance (unlike if you were employed in a job and issued with a payslip each month showing your pay and deductions).

The simplest way to register as Self Employed is to visit the HMRC website and register online. The process can take 10 days to complete upon which HMRC will post you a UTR number (Unique Tax Payers Reference). Keep this safe as you will need this code to file your Self Assessment Tax Return.

Once self employed you must then:

  1. Set up a bookkeeping system that keeps a record of all your income and expenses, as well as filing all your receipts;
  2. Complete a Self Assessment Tax Return by 31 January each year summarising your business income and expenses;
  3. Pay any Tax due by 31 January each year (and payments on account by 31 January and 31 July each year).

Your tax return submitted by 31 January covers the previous tax year (a tax year runs from 6 April to 5 April). So for example, your tax return due by 31 January 2018 details your earnings between 6 April 2016 to 5 April 2017 and this will detail your income from hairdressing as well as any other earnings you may have (such as from other rental income, bank interest or dividends).

It is also worth noting that if you already complete a Self Assessment Tax Return, for example because you collect rental income or have savings interest, that you need to complete a Form CWF1 to notify HMRC that you have a new form of income you need to report on.  Again, you can do this online here and you will need your Unique Tax Payers Reference.

When Should You Register with HMRC as a Self Employed Mobile Hairdresser?

You must register with HMRC as self employed as soon as possible after starting work as an mobile hairdresser but HMRC rules are that you must register by 5 October in your business’ second tax year.

However if you are newly self employed and expect that your gross income will be less than £1,000 in your first year, you may be entitled to the £1,000 Annual Tax Allowance for traders meaning you don’t need to register and declare your income. Check the criteria to understand your eligibility and whether this allowance is the most tax efficient solution for you here.

Next: How Much Tax Do You Pay >

Bookkeeping Spreadsheet Cash Business

Now Available, my simple bookkeeping spreadsheet and guide designed with self employed mobile hairdressers in mind.

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Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.