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Self-Employed? This Is How To Nail Your Tax Return

Self-Employed? This Is How To Nail Your Tax Return

Self-Employed? This Is How To Nail Your Tax Return 

If you hate maths, we have the tips on ensuring your tax return is less of a headache

by AMANDA | CONNECT

Tax can be a headache if you’re self-employed. Unlike being employed, where tax is automatically sent to HMRC from your payslip, sole traders must declare, calculate and pay tax manually via self-assessment. It can be daunting when you’ve not done it before. TaxScout’s head of finance, Francesca Morante, shares how to make it less of a headache with four tips to help you tackle your tax return. 

Understand The Tax Year And Deadlines

The tax year runs from April to April: 6 April to 5 April.

This means that a single tax year takes place between two calendar years e.g. 2024/25. Your earnings, profits and taxes are calculated based on this period. Check out the table for an example of how this impacts your tax return:

BUSINESS START DATE TAX YEAR DEADLINE TO FILE TAXES
1 November 2023 2023/24 31 January 2025
1 April 2024 2023/24 31 January 2025
30 April 2024 2024/25 31 January 2026

You have nine months from when a tax year ends to file and pay your self assessment bill. Put these key dates in your diary: 

  • 6 April: the start of the tax year
  • 5 October: the deadline to register for self-assessment
  • 31 January: the deadline to file and pay your self assessment 
  • 5 April: the end of the tax year

Get Familiar With The Taxes You Owe

As a self-employed person, you owe two major taxes – income tax and National Insurance. What you pay depends on your total earnings. The more you make, the more you pay. Here’s how HMRC charges income tax: 

EARNINGS PER YEAR TAX BAND TAX RATE 
Less than £12,570 Personal allowance 0% 
£12,571 – £50,270 Basic rate 20%
£50,271 – £125,140 Higher rate 40% 
More than £125,141 Additional rate 45% 

When it comes to National Insurance, there’s only one tax the self-employed pay, known as class 4 National Insurance. It’s fairly straightforward; on any income that’s more than £12,570 per year, you pay: 

  • 6% on your profit between £12,570 and £50,270
    2% on your profit of £50,271 or more

Maths not your favourite? Don’t worry! Try this income tax calculator instead to estimate what you owe. 

Learn The Vocab: Earnings, Expenses And Profits 

Wording is important, especially in tax. Earnings and profit are often used interchangeably, but they don’t mean the same thing. And they’re super-important when it comes to your bill.  

  • Earnings – this is everything you earn; all the money you make before any tax-free allowances, reliefs or other deductions 
  • Profit – your earnings minus allowances, reliefs and deductions 
  • Expenses – when you spend on your business. These can include accounting costs, hairdressing equipment and products etc, and you can deduct these from your total earnings to only pay tax on profit. These deductions are known as expenses 

Claim The Trading Allowance 

Did you know that sole traders don’t have to pay tax on the first £1,000 of earnings? It’s known as the trading allowance. Claim it in addition to the first £12,570 of your income that’s income tax and National Insurance free.

However, it’s only worth claiming if your expenses for the year total less than £1,000. This is because you can’t claim both expenses AND the trading allowance – it’s one or the other. So, claim whichever is higher: this will bring down the cost of your tax bill. 

Worried About Mistakes? Get An Accountant 

Staying on top of your tax situation isn’t only for the sake of good organisation. HMRC is vigilant when it comes to tax debt and mistakes made on your self assessment. There are penalties for missing deadlines, paying late and incorrect calculations. 

So, many self-employed workers opt to work with a professional accountant instead of tackling HMRC online solo. The benefits of using an accountant vs DIYing your tax return are:  

  • Reduced stress of having to educate yourself about tax 
  • Avoiding common mistakes that result in fines
  • Keeping your bill as low as possible by claiming relevant allowances and expenses 

But traditional accounting practices can be costly. TaxScouts.com try to combine the best of both. Your own accountant, a straightforward, 100 per cent online process – all for £169. 

Filing A Tax Return In January 2025? 

If you started your self-employed business anytime before 6 April 2024, you probably need to file a tax return for the 31 January deadline. The sooner you kick off, the sooner it’s sorted. File with TaxScouts by 31 January 2025 and you can get 10 per cent off your tax return. 

Visit taxscouts.com/partnership-creative-head. Need a little more help? Contact support@taxscouts.com. 

“I Wanted To Be Somewhere Where Everything Is Designed For Me, The Hairdresser”

“I Wanted To Be Somewhere Where Everything Is Designed For Me, The Hairdresser”

“I Wanted To Be Somewhere Where Everything Is Designed For Me, The Hairdresser”

Inside Host Manchester, the brainchild of scalp bleach expert Sarah Louise Keane.

by KELSEY | CREATIVE PROJECTS

Located just minutes from Manchester Piccadilly on historic Ducie Street, Host Manchester offers hairdressers a home-from-home – a bespoke space which puts their craft firmly in the spotlight. Set in the iconic former ‘Home’ nightclub, the space captures the spirit of innovation and individuality, packed with unique details and nods to Mancunian culture, like the carefully curated prints seen on the gallery walls.

Spanning two floors, the light, spacious space is the epitome of thoughtful design, with every detail considered with the hairdresser in mind.  “The biggest thing for me – not just as someone who teaches who needs a space designed for that – but as a hairdresser who works for herself, I wanted to be somewhere where everything is designed for me, the hairdresser,” Sarah says. “As nice as it is to have a dimly lit backwash, if you can’t see what you’re doing, it’s not ideal,” she adds, laughing.

The three key areas which the space addresses are light, layout and the backwash area. First and foremost, there are massive windows which span both floors. There are also 36 Daylight Bars that mimic natural light, ensuring perfect visibility no matter the weather – ideal for the many days of rain that Manchester is known for!

The backwash areas are strategically placed to maximise the benefits of natural light upstairs, while downstairs, the event and education space has been designed for creativity and learning.

The hairdressing stations have also been carefully positioned to take full advantage of the natural light flooding, ensuring that every station is bathed in optimal light. The thoughtful placement also encourages collaboration through an open, inviting atmosphere. “We wanted to create a space where everyone can come together – whether that’s a hairdresser working behind the chair, someone who does education, or people like Peter [Host’s co-founder], who wants to have a branded event,” Sarah explains. “We can do it all under one roof!”

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“I Am 100 Per Cent Confident In Saying That We Lead The Way In Extensions”

“I Am 100 Per Cent Confident In Saying That We Lead The Way In Extensions”

“I Am 100 Per Cent Confident In Saying That We Lead The Way In Extensions”

Victoria Lynch has been ‘doing hair’ since she was 13. But spotting a gap in the extensions market back in 2003 propelled her to the forefront of the industry, running a hair extensions business, Additional Lengths, worth millions. Creative HEAD sat down with the North East-based entrepreneur as she embarks on the next ambitious phase of her business.

by CATHERINE | DOCUMENTS

Victoria Lynch

Victoria Lynch, founder of Additional Lengths and Remi Cachet

There’s a page on the Additional Lengths website called Victoria Lynch’s Hair Story and it makes fascinating reading. It’s a look back at the brand founder’s journey from doing family and friends’ hair at age 13 in her parents’ spare bedroom to building a UK-leading hair extensions empire in a global market that’s projected to grow from $4.8bn in 2024 to $10.78bn by 2032. It’s a tale of ingenuity, bravery, sacrifice and resilience that few would be capable of – and sends out a clear message that Victoria Lynch is a force to be reckoned with.

When you look back on your business, what do you see?

I’ve seen the journey go from nothing to absolutely blowing up globally. Aesthetics have become part of our DNA and we’re living in a world now where there’s no taboo about anything. It’s okay to have a face lift and a nose job. Hair extensions and wigs have become part of normal life. I can leave the house in the morning without make-up so long as my hair looks good.

You launched Additional Lengths in 2003 selling hair extensions directly to consumers. At what point did you decide to supply to hair professionals?

Additional Lengths was started as a small business primarily to cater to my own needs. Ten years down the line, when hair extensions were still very much in their infancy, I wanted to expand, but Additional Lengths was known as a budget range and I knew I would need something different to attract high-calibre trade professionals.

And the only way I could achieve that was to create something new that could hit the ground running because of the knowledge, experience and supply base that I had built up by then. I knew how to research and develop products, I knew what to look for in terms of quality, delivery, specifications. And I knew I could tailor everything to a professional audience and show up with what they needed before they knew they needed it! So, that’s how and why Remi Cachet came about. I let it look as if Additional Lengths was the official authorised distributor of this amazing new brand on the block, but in reality Remi Cachet is not a business – it’s a brand that I own under the Additional Lengths umbrella.

You started Additional Lengths with a £1,500 loan from the Princes Trust and went on to report sales of £17.6m in 2023. What has driven that growth?

Our innovations lead the way. And I am 100 per cent confident in saying that we do lead the way in extensions. If there is something we don’t do, it’s because it’s a gimmick; it’s not a longterm solution for clients and stylists. I’m very big on sustainability and recyclability, especially when it comes to raw hair. It takes five years to grow 20-inch hair, so if someone removes it after a few months, disposes of it and buys new hair, that’s not okay. I could sell twice as much if I encouraged that cycle of replace, replace, but for me it’s not about the money, it’s about how I impact and show up in the industry. My background is extensions, I’m a Level 3 hairdresser, I’m a qualified educator and I’m very industry-focused. I see it as my responsibility, as an industry leader, to help the next generation flourish in their business by delivering a product that makes their clients feel like they’ve got a return on investment too. The priority for me is quality and creating a product that is reusable time and time again.

As the market grows, does it get more cut-throat, too?

It has become very competitive. I’ve had to get design protections on certain products I’ve created because we add new products colours to our portfolio, but then people copy us left, right and centre. But that doesn’t bother me because it sits well with who we believe we are, which is the natural born leader of hair extensions. Everyone in the industry knows we’ve been the first to launch major changes.

The market has become saturated with so many new brands coming in, but at the same time, some of what used to be the bigger names have faded into the background because they didn’t evolve in the way their customers needed them to. These businesses are not being run by hair professionals but by business people who don’t understand the needs of their customers.

Victoria is determined to be transparent about the supply chain behind her business

Your extensions brand Remi Cachet is currently going through a major rebrand. Why now, and what do you hope to achieve?

Over the last eight, nine years we have evolved, but not from a colour palette or logo point of view and so we needed an update there. But in terms of sustainability things had to change, too, and we’re looking at our packaging and asking ourselves what materials we can tap into so we can meet our sustainability targets. But in all honesty, this is less about what the packaging looks like – as a brand we don’t need to put glitter or polish on anything – it’s about the product inside, and we’re keeping our customers updated as we go along about the changes they can expect.

You’ve posted a video on your socials that deals with your supply chain and how Remi Cachet products are sourced and produced. This full transparency approach is quite rare in extensions, so why have you gone for it?

I think being honest and transparent is the best policy and it’s why I am respected by and have such a good rapport with hair professionals. They don’t just want me to inspire them, they rely on me and my brands to grow their businesses, and they’re able to do this because we offer them an ethical, transparent alternative that their clients want and need. It’s why I focus more on the trade side of things because consumers are not loyal – they will buy from wherever they see the best deal is. Whereas, when you give  professionals what they need and they know they can’t get anything better, they will keep coming back. And that’s how businesses grow, so collectively we’ve grown together.

Training is such a big part of extensions but traditionally usually paid for by the salon owner. With so many hair pros freelance now, are your training programmes taking a hit?

Far from it. What we’re seeing is individuals coming on our courses who want to invest in themselves or their business because it brings so many rewards. The benefit of having hair extensions within your offering is that when a business gets challenged – for example, by clients stretching out that time between appointments, or when something like the Budget adds extra costs to your overheads – you will always have more bums on seats because you deliver more services and you can cater to a wider audience. So, extensions are going to help you get through those economic downturns. If you don’t evolve as an individual and offer more, you’re always going to restrict your own growth.

You’ve come a long way since setting up in your parents’ spare bedroom. What does a working day look like for you nowadays?

Well, I’m busy leading a senior leadership team, a board, 40 employees… I have meetings coming out of my ears right now [laughs]! I’m focusing on our growth in the US, which is where I need to be, where the business needs me, so we’ve just taken on a brand ambassador, Sarah Ashley, who’s been advocating Remi Cachet for years now, and we’re doing lots of the trade shows – we launched in Orlando and we’ve just done San Antonio, then we’ll do Anaheim in February, Chicago in April, then it’s back to Orlando in June. And so the cycle begins again!

Have you ever taken on investors within your business?

I do have investors, but not because the business needed money. Our investors are Growth Partner and they have a minority stake in the business, so I’m still very much in charge and driving the business. But the reason I went with Growth Partner is because it’s headed up by [HomeServe founder] Richard Harpin, who recently sold his business for £4bn. His entrepreneurship is very different to how private equity look at things, which is to strip everything back to the bones, remove the people, the quality, the culture, and then sell it on. And I wouldn’t allow that in my business because for the last 20 years I’ve been about quality and delivery and no price tag is going to determine my choices there.

But especially now where we have our sights set on the US, and it’s about deciding when we register our entity, what’s the trigger point for getting a distribution base out there and all these big decisions… I was thinking, ‘I can’t keep banging this drum on my own forever’. So, at some point I had to let someone in the door.

I’ve never worked in a business or corporation where I’ve been mentored and coached, and the reason I’ve let Growth Partner into my business is to tap into their experience, their networks and to be able to share my thoughts and ideas with a board or pick up the phone and ask for help or advice.

And the reality is that working with Richard, having exposure to a whole new world of people that I simply didn’t have access to being trapped in my own world up in the North East, it’s given me a new level of aspiration. I really do need to think about the future now. I am getting older, and what does the future look like? If I could achieve a fraction of what he’s achieved, and be able to have that true work-life balance one day, be able to repay my family for all the sacrifices they’ve made by investing in them, that would be incredible.

Revealed – 2025 Pantone Color Of The Year

Revealed – 2025 Pantone Color Of The Year

Revealed – 2025 Pantone Color Of The Year 

Hairdressing-friendly Mocha Mousse unveiled to boost interest in rich browns 

by AMANDA | INDUSTRY NEWS

Pantone Colour of the Year Mocha Mousse

Mocha Mousse is the 2025 Pantone Color Of The Year, revealed by the colour-centric design institute. 

Pantone has described the shade as “a warming, brown hue imbued with richness. It nurtures us with its suggestion of the delectable qualities of chocolate and coffee, answering our desire for comfort”. With brunettes already identified as a major growth area for salons in 2025, the Color Of The Year reveal chimes in perfectly to help hairdressing drive trend-fuelled colour treatments and services. 

Pantone Colour of the Year Mocha Mousse

“Underpinned by our desire for everyday pleasures, Pantone 17-1230 Mocha Mousse expresses a level of thoughtful indulgence,” said Leatrice Eiseman, executive director at the Pantone Color Institute. “Sophisticated and lush, yet at the same time an unpretentious classic, Mocha Mousse extends our perceptions of the browns from being humble and grounded to embrace aspirational and luxe.” 

Mocha Mousse follows the 2024 sensation that was Peach Fuzz, a definite hit in hairdressing, encouraging pastel glosses and glazes in chairs across the UK and Ireland. 

The Pantone Color of the Year programme engages the design community and colour enthusiasts in a conversation around colour, and serves to highlight the relationship between colour and culture. Pantone selects a colour each year that captures the global zeitgeist, expressing a global mood and an attitude – all in a single, distinct hue. 

“It Would Be So Beautiful If More Businesses Could Take A Pause To Give Back” – Why Wildflower Closes On The Busiest Day Of The Year

“It Would Be So Beautiful If More Businesses Could Take A Pause To Give Back” – Why Wildflower Closes On The Busiest Day Of The Year

“It Would Be So Beautiful If More Businesses Could Take A Pause To Give Back” – Why Wildflower Closes On The Busiest Day Of The Year

Wildflower’s Give Back Day honours community, compassion and connection on the busiest retail day of the year, 23rd December

by MADDI | DOCUMENTS

Wildflower Dublin closes for Giveback Day

For six years running, Wildflower in Dublin has made the bold and compassionate choice to close its doors to paying customers on 23 December, the busiest day of the year, to give back to the community. The salon’s annual ‘Give Back Day’ has become a cherished tradition, creating space for connection, support and reflection on what the holiday season is truly about. 

“I wanted to do something at the end of the year to bring everyone together, to create a connection, and to remind us what life is about,” says Danielle Garner, owner of Wildflower. “It’s so easy to get caught up in the material side of Christmas, but this day is about something deeper.” 

The tradition began in 2018 with free haircuts for members of the homeless community. “The first year, I went to Dublin Simon Community and looked after people who were homeless, doing their hair for Christmas,” Danielle recalls. “The following year, we did it for parents of children who were terminally ill at our local hospital. That was the most profound year. It was the start of something bigger for us.” 

Wildflower Dublin Giveback boxes

Wildflower Dublin goodie bag

That second year also marked a significant shift for the Wildflower team. Before opening the salon for Give Back Day, the staff participated in a yoga and cacao ceremony. “That morning in 2019 was really impactful. It shifted something in the team – it allowed them to be more open, to express emotions,” Danielle shares. “There were a lot of tears and open hearts. It changed the course of Wildflower, leading us to embrace wellness more holistically in our work.” 

Over the years, Wildflower has tailored each year’s Give Back Day to different causes. “One year, we focused on people surviving domestic abuse. Another year, we supported families through Laura Lynn,” Danielle explains. “Laura Lynn helps families with housing, funding, and emotional support for children who are unwell, and they also have a children’s hospice.” 

This year’s event follows a format that worked well in 2023. Families are invited to the salon in small groups, divided into time slots. “We start with parents whose children are unwell, then parents who have lost children. It gives them a chance to talk to others who’ve been through the same experience,” Danielle explains. “It’s a safe space for connection, and we’ve seen how much it helps.” 

Wildflower’s generosity extends beyond haircuts. Local businesses contribute to goodie bags for the guests, adding thoughtful touches to the day. “Chupi, the jewellery brand, always includes something beautiful – sometimes a piece of jewellery or a Christmas ornament,” Danielle shares. “Mysa Homeware, a vegan candle and soap brand, is contributing this year, and Urban Health is providing catering with nutritious granola pots and fruit and juice for the day.” 

Danielle is hopeful other businesses will join the success of Give Back Day. “I don’t know of anyone else doing something like this in the industry,” she says. “It would be so beautiful if more businesses could pause to give back. Even if they can’t close for the day, contributing to goodie bags or supporting events like this would make such a difference.” 

Want to join the spirit of giving? Businesses can contribute to Wildflower’s goodie bags or start their own version of Give Back Day. Let’s make this season a little brighter for those who need it most. Reach out to Wildflower to learn more! 

Wildflower Dublin salon