In the UK, a large number of barbers are self-employed, so it’s something you need to seriously consider if you’re getting into the industry. While there are employed positions available, self-employment generally gives you far more opportunity to increase your earnings and take control of your career.
That said, being self-employed comes with responsibility, and it’s important to understand what’s involved from the very beginning.
Firstly, you’ll need to register as self-employed with HMRC.
Secondly, you’ll be responsible for buying all of your own tools and equipment.
Thirdly, and most importantly, you’ll need your own insurance. This is non-negotiable. You won’t be covered under the barbershop’s insurance, so having your own policy proves that you are operating as your own business.
These days, being self-employed is much easier than it used to be. There are plenty of accounting apps available, such as QuickBooks, that make tracking income and expenses straightforward. Some people prefer to use an accountant to complete their tax return, which can be helpful, but it’s not essential—especially if you’re organised and using accounting software.
One thing many people don’t think about early enough is tax. When you first become self-employed, you won’t pay any tax for around the first year to year and a half, which can feel great—but that bill will come. With the move towards quarterly tax returns, it’s more important than ever to stay ahead.
My advice to everyone is simple: from day one, put 20% of everything you earn to one side. Then just get on with your life. When your tax bill arrives, it’s covered—and more often than not, you’ll still have money left over that can go towards a car, a house, a holiday, a new wardrobe, or whatever you choose. The worst thing you can do is spend everything and then scramble to find the money later. That’s how people end up constantly chasing their tail.
A lot of people also believe that being self-employed means you can work whenever you want. While that’s true to an extent, it’s not the full picture. Think about it this way: a taxi driver who refuses to work Friday or Saturday nights isn’t going to be given a decent round. If you hired a builder, you wouldn’t expect them to turn up only when they felt like it.
When you rent a chair, you have a contract with the barbershop. You agree to be there at certain times, and in return, the shop provides you with the space to run your business. You can’t constantly cancel clients or decide not to turn up—it damages not only your reputation, but the shop’s reputation as well. The public doesn’t see self-employment behind the scenes; they see a retail business that should be open when it says it’s open.
Self-employment in barbering has been around for decades, and it works extremely well. It allows barbers the freedom to earn more, pay less tax, and claim tax-deductible expenses on things they would be buying anyway.
There are downsides, of course. Getting loans or mortgages can be harder when you’re self-employed. However, if you’re transparent from the start and keep your accounts in order, it becomes much easier than many people expect.
Self-employment isn’t something to fear—but it is something to take seriously. Get organised early, stay ahead of your finances, and you’ll put yourself in a position where you’re not just surviving, but actually getting ahead.
