Find out if You Need to Submit a Self-Assessment

If you're self-employed or rent a chair or a space in a salon and earned over £1000 between 6 April 2022 and 5 April 2023 you may need to tell HMRC about any money you’ve earnt. The process for telling HMRC and for completing a tax return is called Self-Assessment.

You can easily check if you need to send a tax return using an online tool on GOV.UK which helps you decide if you need to complete one and will provide useful links to information you might need.

If you do need to do a tax return you’ll need to act quickly as you’ll need to register for Self-Assessment, fill in a tax return and pay any tax owed by 31 January 2024. If you don’t complete a tax return and pay any tax by the deadline then you may be issued a penalty. 

Do I need to submit a Self-Assessment? 

As with any other sole trader, if you are a self-employed hairdresser you will need to declare untaxed earnings by explaining where you work, how much you’re paid and how often. That’s why it’s so important for you to collect evidence of all the money you earn, products you buy for your business, and any expenses. HMRC can request evidence of your income and expenses up to 22 months after you pay your tax bill.

You should keep track of:

• Invoices for jobs
• Receipts from customer cuts
• Travel receipts
• Premises rent
• Chair hire
• Any other relevant income/expenses from your business

How do I register for Self-Assessment or complete a Self-Assessment return?

The quickest and easiest way to register is to go online. Watch HMRC’s YouTube video on How do I register for Self-Assessment which will walk you through the online process. 

HMRC has other YouTube videos to help you including:

• Starting Self-Assessment
• My first Self-Assessment return
• Self-employment tax return
• Filling in your tax return

Further guidance is also available on GOV.UK on:

• Self-Assessment tax return helpsheets
• Understand your Self-Assessment tax bill
• Pay your Self-Assessment tax bill

Getting help

There’s a wide range of online information and tools available to help you get the answers and information you need for your Self-Assessment tax return and payments. Going online is usually much quicker, easier, and cheaper than calling or writing to HMRC.

You can use: 

• HMRC’s digital assistant if you need to ask questions about Self-Assessment or have a specific query. You can also ask to chat with an adviser if one is available.
• The HMRC app to check how much Self-Assessment tax you owe (once you’ve sent in your tax return), make a payment, and find your Unique Taxpayer Reference (UTR). If you need support with Self-Assessment, go to GOV.UK where you can find a wealth of information to help you.