The National Hair & Beauty Federation (NHBF) has responded to the Government’s latest annual tax update, welcoming measures to tackle tax avoidance while calling for wider reform to support the UK’s labour-intensive hair, beauty and barbering sector.
The Government’s package of tax and customs measures focuses on tax simplification, modernisation and fairness. While the announcement contains no direct tax relief for high street businesses, it includes proposals aimed at reducing tax fraud, improving digital tax systems and strengthening compliance (ie being legal).
Debbie Digby, interim President for the NHF (NHBF), said, “I welcome the Government’s update on tax measures; however, our sector needs the confidence and support to continue employing people, particularly apprentices and young people taking their first steps into work. Hair and beauty businesses are experts at nurturing talent and building careers, but they must also have the economic conditions that enable them to invest in the next generation.”
A key proposal within the announcement is action to tackle electronic sales suppression, sometimes referred to as till fraud, where software or payment systems are used to under-report sales. HMRC is consulting on new standards for electronic point of sale (EPOS) and mobile point of sale systems to prevent fraud and improve the accuracy of record keeping.
The NHBF has long campaigned for a level playing field for legitimate businesses and welcomes action against those who deliberately evade tax.
However, the NHBF is clear that any new compliance measures must be proportionate for the thousands of micro and small businesses operating across the sector.
Debbie Digby added:
“Businesses that operate responsibly should not be disadvantaged by those who avoid tax and undermine fair competition. We support action against deliberate non-compliance, but any new requirements must be practical and proportionate. Salons and barbershops should not face unnecessary costs, complicated software changes or additional administration because of the actions of a minority.”
The Government has also proposed requiring VAT and PAYE liabilities to be paid by Direct Debit. While intended to improve tax collection, the NHBF says any changes must reflect the cashflow realities faced by independent salons, barbershops and beauty businesses.
Many employers continue to face increasing pressure from higher wage costs, employer National Insurance contributions, energy bills, product prices, rent and VAT obligations.
The NHBF will review the consultations in detail and respond on behalf of members where appropriate, ensuring the voices of independent businesses are represented throughout the process.
The NHBF says the latest announcement also underlines the need for wider tax reform.
“Compliance and enforcement are important, but they cannot replace meaningful support for labour-intensive service businesses,” said Debbie Digby. “If the Government wants thriving high streets, growing employment and more apprenticeships, it must create the economic conditions that allow our sector to invest, recruit and grow.”
The NHBF will continue working with Government and using member evidence to press for reforms that support sustainable business growth while ensuring fair competition across the sector.
If you want your voice to be heard and inform at the highest levels join the NHBF today.
