Finding a Local accountant for Hairdressers and Salons
Finding a specialist local accountant for hairdressers can be stressful. The world needs skilled hair stylists. If you are a hairdresser, then there will always be a regular stream of work for you to tap in to. It can be a great self employed business for you to flourish in.
How should you structure your business? How should your accounts be organized? These might be questions that you have never asked yourself before. Most hairdressers are creative types, and thus business plans can often be an afterthought. Let’s look at some of the options that are available, and see what will be the best choice for you.
Self Employed Hairdressers and beauty salons
If you are a freelance hairdresser, perhaps someone who travels to their clients, or doesn’t own a studio, this can be the best option for you. Being self employed means that you are in charge of your own tax reporting once per year, and are personally liable for any debts. Many hairdressers will rent a chair in a salon, and maybe travel to do hair for special occasions. If this describes your situation you are most likely using your own tools, don’t have any employees and don’t need a complicated structure. The reason that being self employed if this is your position is good is because you do not have any large overheads. Even if you are in a situation where you are renting a chair in a salon, there shouldn’t be a need for you to form a limited company.
At the end of the tax year, all you will have to do is a simple deduction of your expenses against your revenue, and pay tax on that. Another advantage could be that expenses such as travel, equipment and other such things can be claimed on your tax return, thus reducing the overall size of your tax bill.
Limited Company for Hairdressers and beauty salon
If you own a hairdressing salon or business, then having a limited company may well be the best option for you. If you own a salon, then you will likely have employees working there. You will have expensive overheads (rent, utilities and salary) and it is a wise move to make sure you are personally covered if anything was to go wrong. This is where a limited company can help you protect yourself.
If your business is hit with a problem, you will not bear any personal responsibility for the debts or liabilities. This is not the case if you are self employed. Thus, the more complicated and larger your business becomes, the more likely it is you should register a limited company.
Accountants for Hairdressers
The main concern of any hairdresser should be growing their client base, and honing their craft. That is why often times, the most successful hairdressers out there will employ an accountant to take care of their financial welfare and provide the correct advice for if you are self employed.
This means that whether you are self employed or run a limited company, your accounts can be done on time, and in the most tax efficient way.
There are many deductions that you can claim when you are a hairdresser, but knowing and tracking them all can be very time consuming. This is why, an accountant would be a great choice to make sure your hairdressing business is taken to the next level