What to know before you decide
Tips
Cash and card tips are taxable. Self-employed hairdressers include them in turnover; for employees, tips paid through payroll go through PAYE.
The VAT registration threshold
You must register for VAT when your VATable turnover goes over £90,000 in any rolling 12 months — not just at your year end. We check that figure every month so registration never takes you by surprise.
VAT Registration & Returns for Doctors & Healthcare ProfessionalsRent-a-chair
If you rent a chair, you are usually self-employed and keep your own takings. Salon owners who let chairs need to check how VAT applies to the rent they charge.