Tax Changes this April – How to Get Ahead of the Curve by Sean Hanna

The upcoming tax changes in April 2025 are likely to present some challenges for hair salons and their employers. There only a few weeks left to get ready!

An increase in Employer National Insurance Contributions (NICs) from 13.8% to 15% will undoubtedly impact operating costs. Furthermore, the reduction in the threshold for paying NICs from £9,100 to £5,000 per employee means salons will now contribute to NICs on a larger portion of their staff’s earnings. These tax changes may even put financial strain on salon owners.

They might need to carefully consider how to absorb these increased costs, potentially leading to adjustments in pricing for services. It’s understandable that this may cause some concern, as it could impact customer affordability and the salon’s overall profitability. Sean Hanna, award-winning salon owner and founder of The Sean Hanna Business Consultancy, says there are a few changes salon owners need to look out for. “For many salon owners they will be hit with increased business rates, increased minimum wage and increased National Insurance all at the same time. We know these changes are coming, so don’t let it be a surprise. There are a few months to plan and get ready as much as possible so make some time to get ready,” he says.

Sean’s tips for getting ready for April changes 

• Work out the implication of the upcoming changes – have a meeting with your accountant and work out the numbers.
• Many salon owners will have to find a balance between increasing prices and cutting costs, so look where the increases will be, and what costs can be cut without affecting the service you offer.
• Don’t just wait to see what happens – preparation and planning is everything in business, especially when you know something is on the horizon.
• Don’t just do what the salon down the road does as their costs might vary greatly from yours. Every business is unique, and any changes you make have to work for you, your team and your clients.
• Do your numbers and create a proactive strategy that works for you and your business.