Accounting solutions for hair salons, beauty therapists, nail bars, and spas including booth rental accounting and product retail tracking.
Salons mix employed staff and self-employed “chair renters” — a hotbed for HMRC employment-status enquiries. Westfin reviews contracts against IR35 and worker-status case law, runs payroll for stylists, and handles product retail VAT plus tronc for service tips.
The reliefs, schemes and risks that consistently apply in this sector — with HMRC source links so you can verify everything we say.
HMRC and tribunals (Atholl House, PGMOL) routinely re-class “self-employed” stylists as employees. Get the contract and day-to-day reality right.
Reference (gov.uk)Full input VAT recovery on professional products used in service; partial only on retail products if mixed scheme used.
Reference (gov.uk)Salons with annual pay bill > £3m pay 0.5% Apprenticeship Levy — under-£3m salons get a £15k allowance (no Levy in practice).
Reference (gov.uk)Booth rental vs employed staff
Product sales vs services VAT
Appointment booking integration
Commission-based pay structures
Inventory for retail products
Multiple payment methods
Salon software integration
Automated booth rental tracking
Service vs retail sales separation
Commission calculations
Product inventory management
Client prepayment accounting
Booth rental income tracking
Service and retail VAT compliance
Commission-based payroll
Product inventory accounting
Appointment system integration
Gift voucher liability management
Speak to our Salons & Beauty accounting specialists today