Whether you run a salon in Benfleet, work as a mobile hairdresser across Essex, or offer beauty treatments from a home studio, knowing what you can claim as a business expense is essential to keeping your tax bill as low as legally possible.
HMRC allows you to deduct "wholly and exclusively" business expenses from your income before calculating your tax. Here's a comprehensive guide to what hair and beauty professionals can claim — and a few things you can't.
Equipment & Tools
Professional tools and equipment used exclusively for your business are fully deductible. Under the Annual Investment Allowance (AIA), you can deduct the full cost in the year of purchase (up to £1 million per year).
Products & Stock
All products you use in your treatments or sell to clients are deductible as cost of goods sold. This includes:
- Hair colour, bleach, and toners
- Shampoos, conditioners, and treatments
- Nail polishes, gels, and acrylics
- Waxing strips, wax, and pre/post-wax products
- Skincare products used in facials
- Retail products sold to clients
- Disposables (gloves, cotton pads, foils)
Premises & Rent
If you rent a salon chair, booth, or treatment room, the rent is fully deductible. If you work from home, you can claim a proportion of your household costs (mortgage interest or rent, utilities, council tax) based on the percentage of your home used for business.
Working from home? You can claim:
- HMRC flat rate: £10/month (no receipts needed)
- Actual costs: proportion of rent/mortgage interest, utilities, broadband
- Dedicated room: higher proportion claimable
Training & CPD
Courses and training that maintain or improve your existing skills are deductible. This includes:
- Advanced colouring or cutting courses
- Nail technician qualifications and refreshers
- Beauty therapy CPD courses
- Business and marketing training
- First aid certificates
- Health and safety training
Important: Training that qualifies you for a new profession (e.g., a hairdresser training as a nurse) is not deductible. The training must relate to your existing trade.
Vehicle Costs (Mobile Therapists)
If you travel to clients as a mobile hairdresser or beauty therapist, you can claim vehicle costs. The simplest method is HMRC's mileage allowance:
First 10,000 miles
45p/mile
Over 10,000 miles
25p/mile
Keep a mileage log with dates, destinations, and business purpose for each journey.
What You Can't Claim
Even if you only wear it for work — unless it's a branded uniform or protective clothing
Your own haircuts, nails, or beauty treatments are not deductible, even if they're "for the business"
HMRC does not allow deductions for entertaining clients
Parking fines, HMRC penalties — none of these are deductible
Specialist Hair & Beauty Accountants
Our hair and beauty accounting team understands the unique expenses and tax challenges of the industry. We'll make sure you're claiming everything you're entitled to.