How you actually work matters more than your job title. If you rent a chair or space in a salon and keep 100% of what your clients pay you (minus the rent), you're self-employed and MTD applies to you directly based on your income. If you're paid a wage or commission by a salon owner, you're likely employed, and MTD for Income Tax doesn't apply to that income at all — it's handled through PAYE.
Being called "self-employed" or "freelance" by a salon isn't enough on its own. HMRC looks at whether you set your own prices, keep your own client bookings, and carry your own business risk. If in doubt, this is worth checking properly, since the label on your contract doesn't override how you actually work.
Mobile nail and beauty technicians who travel to clients' homes have the same qualifying income rules as anyone self-employed — all your treatment income counts, whether paid by card, bank transfer, or cash. Deposit-taking apps and booking platforms (Fresha, Treatwell) report your earnings, but the responsibility to keep accurate digital records under MTD sits with you.
Tips are also taxable income if you keep them directly and they're not processed through an employer's PAYE tronc scheme. Cash tips especially need to be recorded, not just card ones.
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Usually yes, if you set your own prices, manage your own bookings, and pay a fixed rent rather than receiving a wage. But the actual working arrangement matters more than the label — if the salon controls your hours, prices, and clients, you may actually be employed regardless of what your contract says.
Yes. Tips you keep directly, whether cash or card, count as taxable income unless they're processed through an employer's official tronc scheme (which only applies if you're employed, not self-employed).
Yes, chair or space rent you pay to a salon is a normal allowable expense that reduces your taxable profit. It doesn't, however, reduce the gross income figure HMRC uses to check whether you're over the MTD threshold.
No. All self-employment income combines into one qualifying income figure regardless of whether you work from a fixed salon chair or travel to clients.
Your self-employed beauty income needs its own Self Assessment reporting once it's above £1,000 a year (the trading allowance), even if you're also employed elsewhere. Your employed PAYE income is separate and doesn't combine with your self-employment income for the MTD threshold.