Can I offset my hairdressing training costs?

Congratulations on completing your hairdressing course and starting your new business venture.  

For a sole trader, the costs arising from the acquisition of new expertise can’t be set against the normal revenue income your business generates. 

The rules are that the costs incurred to put you in a position to be able to trade are not incurred as part of actually trading. As such, HMRC will not allow you to set the expense against your taxable income profits. 

The good news is that now you are qualified, any ongoing development update training you undertake will be allowed as a revenue expense and may be set against your taxable sole trader profits. Additionally, if in time you employ staff and pay for their training, this will be an allowable revenue expense. It is also worth noting that different rules apply to directors of limited companies. 

Now you’re working as a self-employed hairdresser, you should give some thought to your bookkeeping needs to help you manage your business and budget for tax. Ideally, you should put in place a secure, cloud-based system that will provide a simple transparent way to keep on top of your business.

At TaxAssist Accountants, we can help you complete your books and tax return, so you know how much tax needs to be paid and by when. 

We work with many self-employed individuals, and we can help you too. If you need help with your self-assessment affairs, call us today on 020 8500 7114 or drop us a line using our online enquiry form. 

Date published 8 Jun 2023 | Last updated 12 Jun 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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