English Cymraeg
English Cymraeg

News

News

August 2016

Hairdressing Recognised as a Profession by HMRC

Qualified hairdressers and barbers working the industry across the UK are celebrating the news that they can now claim tax relief on their State Registration fees paid to the Hair Council.

Her Majesty’s Revenue and Customs (HMRC) has recognised the hair industry as a profession and agreed to add the Hair Council to the Government’s list of professional bodies approved for tax relief.

The landmark decision has been described by the Hair Council as another major step forward in gaining professional recognition for the industry. In the past, the Hair Council’s State Registration fees paid by hairdressing and barbering salon owners were considered a taxable benefit and they had to pay extra National Insurance on top.

Now, due to the change, the fees are an allowable expense which can be used to reduce profits and thus reduce corporation tax. Hairdressers or barbers who pay the fee themselves can now claim income tax relief on the cost.

“The Hair and Barber Councils are delighted that the HMRC has accepted our position relating to income tax relief in respect to annual subscriptions,” said Mrs Davis-Fox. “This decision enforces the council’s determination to get the hair and barbering industry professionally recognised and to continue working for mandatory State Registration.

“It has been accepted that the membership fee paid by our members will not be treated as a benefit in kind and, as such, it does not have to be included in the HMRC return for tax purposes.

“This is another huge step forward for the industry and follows our political lobbying which has resulted in the All Party Parliamentary Group for the Hair Industry being formed in Westminster. Members of the National Assembly for Wales are also supporting our campaign for a cross party group to be established at the Senedd and we hope to hope have more news on this development soon.”