Preparing for your tax return doesn’t have to be stressful! As a self-employed hairdresser or beautician, knowing what’s expected and having everything in order can save you time, money, and headaches. In this guide, we’ll walk you through each step to ensure you file your taxes with confidence.

Step 1: Know Your Tax Deadlines

Filing your tax return late can result in fines and penalties. Mark these key dates on your calendar:

• 31 January: Deadline to file your online self-assessment tax return.
• 31 July: Deadline for the second payment on account.

Step 2: Gather Your Financial Records

Before starting, make sure you have:

• Invoices for all client bookings.
• Receipts for expenses (e.g., salon supplies, travel, training).
• Bank statements for your business accounts.

Step 3: Calculate Your Taxable Income

Your taxable income includes:

• All money earned from your services.
• Tips or gratuities from clients. Subtract allowable expenses to determine your taxable income. (See our guide on "What Expenses Can Hairdressers Claim for Tax Purposes".)

Step 4: Use HMRC’s Online System

If you’re new to self-assessment:

1. Register for self-assessment on HMRC’s website.
2. Use your login to access the online tax return form.
3. Follow the prompts to enter your income, expenses, and tax reliefs.

Step 5: Set Aside Money for Taxes

Avoid last-minute surprises by saving for your tax bill throughout the year. Aim to set aside around 20-30% of your income.

Tips and Reminders:

• Double-check your calculations to avoid mistakes.
• Claim all allowable expenses to reduce your tax liability.
• Keep digital and physical copies of your records for at least 5 years.

Ready to simplify your tax prep? Start using FroHub’s financial dashboard to track your income and expenses with ease.