The British Hair Consortium (BHC) has announced a sector-wide campaign urging professionals across the hairdressing, barbering and beauty industry to contact their MP in support of fundamental tax reform
According to the BHC, this is a pivotal moment. The government has established a new Growth Taskforce, made up of 74 MPs, to explore how the tax system can better support economic growth.
Why This Matters Now
The industry is currently navigating a period of significant change, including increased taxation, new regulatory frameworks, and the introduction of the Fair Work Agency. In addition, a new government inspection body now has the authority to enter businesses and assess compliance.
The BHC highlights that it has never been more important for businesses to understand how these developments affect them. The Growth Taskforce is actively seeking insight into the pressures facing industries and is open to engagement.
How to Get Involved
Industry professionals are encouraged to:
- Register to join the One Voice campaign
- Use the template letter provided to contact their MP (with a focus on the 74 Taskforce MPs)
- Share the campaign with others
- Help raise awareness across the sector
Key Issues Highlighted by the Campaign
VAT Reform and Market Distortion
The BHC continues to call for a reduction in VAT and measures to create a more level playing field. It warns that current disparities are contributing to a decline in employment and apprenticeships.
Recent analysis from the BHC indicates:
- Employment in the sector fell by 20,000 in 2025, with nearly a quarter (23%) of employee roles lost in a single year, leaving just 65,500 employees – the lowest figure on record.
- VAT-paying salons have grown at a significantly slower rate than the wider economy, while non-VAT-paying operators have expanded much faster.
The BHC states that these imbalances are distorting the market and placing legitimate employment under pressure.
Further analysis of ONS data, alongside findings from the BBC’s File on Four, suggests that approximately £1 billion in tax revenue may have been lost in the past year due to avoidance and evasion (£500 million in VAT and £500 million in National Insurance contributions).
The BHC argues that these structural challenges are pushing some compliant businesses toward unsustainable practices.
Making Tax Digital (MTD) for Income Tax
Making Tax Digital for Income Tax is a mandatory HMRC initiative launched in April 2026. It requires sole traders and landlords with qualifying income over £50,000 to maintain digital records and submit quarterly updates using compatible software.
Key timelines:
- April 2026: Mandatory for income over £50,000
- April 2027: Mandatory for income over £30,000
- April 2028: Expected to extend to income over £20,000
This system will replace annual reporting with quarterly updates, followed by a final declaration each January.
The BHC has raised concerns that some businesses may not be fully aligned with current guidelines agreed with the NHBF, potentially putting them at risk of non-compliance. It notes that some may have shifted to self-employment models in response to financial pressures, without full awareness of the regulatory implications.
The BHC emphasises the importance of ensuring these businesses are properly represented and supported at a government level.
For further guidance, businesses are encouraged to contact a BHC member organisation or email [email protected].
Get Involved
Register to join the campaign and support efforts to engage MPs by clicking here.
