Payroll
Reliable payroll management that covers the practical details of paying and looking after your team, from new starters to annual leave.
Who we help
Accountants for Hairdressers, Barbers and Beauty Salons
Salons run on daily takings, a mix of employed and self-employed stylists, tips, product sales and a VAT threshold that arrives sooner than most owners expect. We keep all of it straight so you can concentrate on the clients in the chair.
Accountancy for hairdressers, barbers and beauty salons
About our support for hairdressers, barbers and beauty salons
The money side of a salon
Money arrives in small amounts all day, by card and in cash, for treatments, products and tips. Some of the people working in the salon are employees, some rent a chair or a room and run their own business, and each arrangement has different tax and payroll consequences. Add stock, card terminal fees, booking-app charges and the rent, and it takes a proper system to know whether the salon made money this month. That system is what we set up and run.
Hislop Business Solutions is run by Michelle Hislop, an AAT licensed accountant with more than 15 years in accountancy and over 8 years of hands-on payroll experience. You deal with Michelle directly, and you should never feel like you are bothering her with a question.
What we take care of
- Bookkeeping and software that records daily takings, card settlements, product sales and costs without you typing everything twice.
- Payroll for employed stylists, apprentices and receptionists, including pensions, holiday pay and variable hours.
- Tips: the rules for passing tips to staff and how they are taxed, set up so nobody is caught out.
- Chair and room rental: written agreements and records that reflect a genuine self-employed arrangement.
- VAT: watching the threshold as the salon grows, registering at the right moment and filing the returns.
- Self Assessment for self-employed stylists and for salon owners trading as sole traders.
Points that matter for salons
Employed stylists or chair rental?
A stylist who rents a chair runs their own business: they set their prices, keep their takings, pay rent to you and file their own tax return. An employee works your hours for your prices and is paid through payroll. HMRC decides which is which by looking at how the arrangement actually works, not by the label, so the agreement, the money flows and the day-to-day reality all need to line up. We help you set it up properly whichever way you choose.
Tips
Since October 2024 employers must pass on tips, gratuities and service charges to staff in full, allocate them fairly and keep a written policy and records. Tips are taxable income for the person who receives them; how the tax and National Insurance are handled depends on whether tips go straight to the stylist, through the employer or through a tronc. We set this up so it is compliant and simple.
The VAT threshold
Hairdressing and beauty treatments are standard-rated, so once the salon’s taxable turnover passes the registration threshold, VAT has to come out of your prices or go on top of them. Because takings are spread across many small payments, owners often cross the line without noticing. We monitor the rolling twelve-month figure and plan the timing and pricing with you.
Product sales and stock
Retail products carry different margins from treatments and need separate tracking, and stock on the shelves at the year end affects your profit figure. Simple stock counts and separate sales categories in the till and the bookkeeping keep both right.
Local when you need it, remote when you don’t
We are based at 119 John Street, Larkhall, and work with businesses across Lanarkshire in person and across Scotland and the UK remotely. Your bookkeeping lives in QuickBooks or FreeAgent, so we both see the same live figures, and questions are a phone call, video call or email away.
Getting started
The first step is a free, no-obligation conversation about your business. We will suggest the right mix of support and a clear monthly price, and if you decide to go ahead we take care of the handover from your previous accountant or your spreadsheets. Book your free consultation or call 07510 914616.
Most relevant services
The services hairdressers, barbers and beauty salons use most
Pick one or combine several; the support fits the size and shape of your business.
Bookkeeping & Software
Accurate, organised records and the right accounting software, without spending your evenings buried in paperwork.
VAT Returns
Help staying organised, accurate and compliant with VAT, from choosing the right scheme to submitting your returns on time.
Why Hislop
Accounting is about more than submitting forms.
It is about having someone approachable to ask, knowing what needs done and when, and getting your evenings back.
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Someone to ask
A real person who knows your business and is only ever a phone call or message away.
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Know what is due and when
We keep track of what needs filed and when, so deadlines never sneak up on you.
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Accurate, up-to-date records
Bookkeeping that shows whether you are making enough money and helps you plan ahead.
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Support shaped to you
No one-size-fits-all packages: as much or as little help as your business needs.
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Plain English, no jargon
Clear explanations of what your numbers mean and what HMRC expects of you.
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Time back to run your business
We take care of the financial admin so you can get on with what you do best.
How it works
Simple from the first conversation.
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Tell us about your business
Start with a friendly, no-obligation conversation about where you are now and what support you need.
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We make things clear
We explain what needs handled, recommend the right level of support and agree a simple monthly arrangement.
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We take care of the detail
Your records, returns and payroll are kept organised and on track, and you are kept updated as we go.
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You focus on your business
Get back to running the company knowing the accounting side is handled by someone who cares.
Who else we help
Other trades and industries
Questions
Questions from hairdressers, barbers and beauty salons
Still have a question?
Ask Michelle directly. There is no such thing as a silly question.
My stylists rent chairs. Are they employees?
Not if the arrangement is genuinely self-employed: they set their own prices and hours, keep their own takings, pay you rent and file their own tax returns. If in practice you control their hours and prices and pay them a wage, HMRC will treat them as employees whatever the paperwork says. We review how it works in your salon and help you document it properly.
Do we have to pay tax on tips?
Tips are taxable income for whoever receives them. Cash tips kept by a self-employed stylist go on their own tax return. Tips that pass through the salon, including card tips, must be passed on to staff in full and are usually taxed through payroll or a tronc arrangement. We set up whichever route fits your salon and keep the records the rules require.
When does a salon have to register for VAT?
When taxable turnover in any rolling twelve-month period passes the VAT registration threshold, or when you expect it to within the next thirty days. Treatments and product sales all count. Because salon takings build up in small daily amounts, we track the rolling figure for you and plan pricing before registration bites.