Chair rent, a heavy cash and card trade and high walk-in volume. Here's how Making Tax Digital for Income Tax applies to barbers, the easy way to keep records, and when it starts for you.
MTD for Income Tax phases in by gross income before expenses. A busy chair-renting barber can sit between £30,000 and £50,000, so April 2027 is the step to watch.
You don't need to record every haircut. Logging your day's takings, cash and card together, keeps your records complete and your quarterly update a quick review, even on a busy walk-in day.
When you're in scope, your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Log a daily takings total, using your card-machine figures as a reference, and your records stay complete.
A cash-heavy trade is easy with a daily total. Log it as you cash up and your quarter takes care of itself.
Rent you pay the shop is deductible. Record your takings and the rent so you're taxed on what you keep.
Clippers, blades and consumables are deductible. Keep the receipts so your expenses stay complete.
Insurance and any training are deductible. Keep them recorded so nothing is missed at year-end.
A busy chair shouldn't mean fiddly admin. Clear Books lets you log a daily takings total and gives HMRC exactly what MTD needs, whenever you're in scope.
Log daily takings and rent as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.