Question 1

Do you need a licence to open a hair salon in the UK?

Accepted Answer

There is no national licence. Some councils require hairdressers and barbers to register their business and premises, free in some areas, while others removed the requirement after the Deregulation and Contracting Out Act 1994. Where a council has made byelaws under section 77 of the Public Health Act 1961, they set cleanliness standards for the salon and the staff.

Question 2

Are chair renters self-employed?

Accepted Answer

Only if the working practice supports it. HMRC's guidance of 9 May 2025 looks at who sets hours, prices and tasks, who provides the clients and who is paid by the client. Renting a chair alone does not make a stylist self-employed, and HMRC tests the real arrangement against the written agreement.

Question 3

Is VAT charged on chair rental?

Accepted Answer

Yes, where the salon is VAT-registered. HMRC treats chair rental as a standard-rated supply because the salon provides more than the space, such as basins, reception and a waiting area, and the High Court agreed in Denyer in 2007.

Question 4

Do hairdressers have to do an allergy test before colouring hair?

Accepted Answer

No statute requires the test itself, but the law shapes it. UK cosmetics rules require oxidative hair dyes to carry the warning that hair colourants can cause severe allergic reactions. Manufacturers instruct an allergy alert test 48 hours before every application. According to Habia, salon insurance contracts routinely require those instructions to be followed, and the Hair Council publishes a 2024 Harmonised Professional Standard for Allergy Testing.

Question 5

Can a salon colour the hair of someone under 16?

Accepted Answer

It is not a criminal offence, but it goes against the product’s legal labelling. Oxidative hair dyes sold in the UK must carry the statement “This product is not intended for use on persons under the age of 16”. Habia’s guidance notes that colouring under-16s conflicts with that labelling and with what insurers expect, which is why many salons refuse permanent colour for under-16s.

Question 6

What health and safety rules apply to a hair salon?

Accepted Answer

The main one is COSHH, the Control of Substances Hazardous to Health Regulations, which requires exposure to harmful products to be controlled. HSE’s guidance for hairdressers covers:

non-latex gloves for shampooing, colouring and bleaching, changed between clients

drying and moisturising hands

ventilating the salon, because persulphates and henna can cause asthma

regular skin checks for early signs of dermatitis

Question 7

Can you run a hair salon from home?

Accepted Answer

Yes, but business rates may then be due on top of Council Tax. GOV.UK says rates can apply where clients visit the property, where staff are employed there, or where the home has been altered for the business; its own example is a garage converted to a hairdresser’s. The Valuation Office Agency decides. Council registration still applies where it exists: in Bournemouth it covers mobile and home-based hairdressers too.

Question 8

What insurance does a hair salon need?

Accepted Answer

Employers’ liability insurance is compulsory once a salon employs anyone. Public liability insurance is not a legal requirement, but landlords and insurers commonly expect it. Under the chair-rental guidelines in HMRC’s manual, a self-employed renter insures their own business, including public liability. Treatment liability cover usually depends on following product instructions, including allergy tests.

Question 9

Do salons have to pass tips on to staff?

Accepted Answer

Yes, since 1 October 2024 in England, Scotland and Wales:

No deductions: employers must pass on all tips paid through the business in full.

Written policy: required where tips are more than occasional.

Timing: tips are paid out by the end of the month after they were received.

Records: kept for three years.

Out of scope: cash handed directly to a stylist, where the employer has no involvement.

François Lozano

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