Hair and beauty salons across the South say rising taxes and employer National Insurance are pushing many businesses to the brink.
Limited companies pay corporation tax on profits, 25 percent for most firms, with a lower rate for smaller profits, while sole traders and partnerships are taxed through self-assessment on their earnings after expenses. Many salons also charge VAT once turnover exceeds £90,000 a year. On top of that, employers pay 13.8 per cent in National Insurance on wages above £175 a week, and business rates are due on commercial premises based on their rental value.
Salon owners argue that the combined burden is squeezing already tight margins and making it harder to invest in staff and training. In response, Creations Hair and Beauty Salon in Chichester convened a round-table at Fernleigh, bringing together local salon owners and Chichester MP Jess Brown-Fuller to explore solutions for a sector they say is under severe strain.
The discussion covered training and apprenticeships, unfair competition, and calls for greater financial support to keep skills and jobs in the community.
Hear more on the challenges facing the industry: listen to V2 Radio News Editor Philip Keeler’s conversation with Creations owner Carolyn Sweeny, who explains how rising costs are affecting salons right now.
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