This will apply to small business owners, salon owners, hairdressers, beauty professionals, and freelancers, whose gross income from self-employment (and/or property) exceeds £50,000, shaping how they run their business and finances.

Businesses and self employed individuals will need to use approved software, and split their admin over the year, logging income, receipts and expenses every three months, to send a quarterly report to HMRC via their chosen software.

Whilst this may seem like a burden, these changes will allow business owners and individuals to see their tax bill to date, at the touch of a button, at the end of each quarter. The software will also accumulate all updates and automatically fill out a tax return at the end of the year, with only small additions required, such as adding other sources of income.

For the beauty sector, this change will have several implications. It will help normalise regular financial check-ins, in an industry where admin is often deprioritised, giving salon owners and self-employed professionals clearer visibility of cash flow and their estimated tax bill at the end of each quarter.

The intention is also that this improved visibility will allow freelancers and salon owners to make more informed decisions throughout the year, based on up-to-date figures that reflect true earnings and costs – helping to support long-term business planning.

It is also hoped that going digital will simplify business practices, with less reliance on paper-based record keeping, and give business owners more time to focus elsewhere.

To learn more and make sure you’re compliant in time for April, find the government guidance here.