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HMRC internal manual

VAT Taxable Person Manual

Particular trades: Hairdressing: Who is making the supply? - the three possibilities

This is an area where problems often arise in determining who has made the supply of hairdressing services to the public. There are three possible scenarios.

  • The hairdressing salon employs its own stylists under contracts of service The salon therefore makes the supply of hairdressing to the customers.
  • The hairdressing salon engages its stylists as self-employed contractors, under contracts for services The stylists supply their services to the salon and the salon then makes an onward supply of hairdressing services to its customers.
  • The self-employed stylists supply hairdressing services direct to the customers The salon makes charges to the stylist (sometimes called “chair rental”) to cover items such as sale of shampoo or the right to use an agreed part of the salon.