Rent a chair, room or space in a salon or gym? For tax, you're self-employed. Here's what that means, what records you need, and when Making Tax Digital for Income Tax applies to you.
If you keep your own takings and pay the salon or gym for the space, you're running your own business from their premises. That means your own tax, and MTD for Income Tax once you're over the threshold.
The key to clean records is separating your income from the salon's. You record the full takings you keep, then claim the chair or room rent as an expense, so you're taxed on what's actually yours.
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.
Record your takings and your rent separately so your quarterly figures show what you actually keep.
Renting a chair or space works a little differently in each trade. Start with the guide that fits your work.
Chair rent, colour stock, tips and retail product sales.
Read the guide →Chair rent, heavy cash trade and walk-in volume.
Read the guide →Room rent, treatment packages and product stock.
Read the guide →Gym floor rent, session income and online programmes.
Read the guide →Studio chair rent, deposits and consumables.
Read the guide →Clinic room rent, product stock and high-value treatments.
Read the guide →Renting a chair makes you a business owner, even if it doesn't always feel like it. Clear Books keeps your takings and costs tidy and gives HMRC exactly what MTD needs.
Record your takings and rent as you go, and be ready to submit your first quarterly update when your wave lands.
