Chapter 1: Business Registration and Local Authority Requirements
Business Structure and Registration
Salon operators in the UK must register their business with HM Revenue and Customs (HMRC) for tax purposes. The choice of business structure determines the registration process and ongoing obligations:
- Sole trader: Must register with HMRC for Self Assessment tax returns. Registration must be completed by 5 October in the business's second tax year.
- Partnership: Each partner must register individually for Self Assessment, and the partnership itself must be registered. One partner is designated as the nominated partner responsible for filing the partnership tax return.
- Limited company: Must be incorporated and registered with Companies House under the Companies Act 2006. The company must also register with HMRC for Corporation Tax within three months of commencing business. Directors must register for Self Assessment.
VAT Registration
Value Added Tax (VAT) registration is mandatory when taxable turnover exceeds GBP 90,000 in any rolling 12-month period (threshold as of April 2024, subject to adjustment). VAT is charged at the standard rate of 20% on most salon services and products. VAT-registered businesses must submit quarterly VAT returns through the Making Tax Digital (MTD) system and maintain digital records.
Local Authority Registration for Special Treatments
In England, local authorities (district councils, metropolitan boroughs, London boroughs, and unitary authorities) have powers to register and inspect premises offering certain beauty treatments. Under the Local Government (Miscellaneous Provisions) Act 1982, registration is required for premises and practitioners carrying out:
- Acupuncture (Section 14)
- Tattooing (Section 15)
- Ear piercing (Section 15)
- Electrolysis (Section 15)
Many local authorities have adopted additional powers under Part 8 of the London Local Authorities Act 1991 (for London boroughs) or have passed local bylaws to require registration for a broader range of special treatments, including:
- Semi-permanent makeup and microblading
- Chemical peels
- Microdermabrasion
- Laser and intense pulsed light (IPL) treatments
- Dermal fillers (non-prescription)
- Eyelash extensions
The specific treatments requiring registration vary by local authority. Before opening a salon, operators should contact their local council to determine which treatments require registration and what conditions apply.
In Wales, the Public Health (Wales) Act 2017 established a mandatory licensing scheme for special procedures, including acupuncture, body piercing, electrolysis, and tattooing. This scheme replaced the registration system under the Local Government (Miscellaneous Provisions) Act 1982 in Wales and is administered by local authorities with support from Public Health Wales.
In Scotland, civic licensing for skin piercing and tattooing is governed by the Civic Government (Scotland) Act 1982. Local authorities issue licenses and set conditions.
In Northern Ireland, regulation of special treatments is governed by local council bylaws. The regulatory framework is being reviewed and may change during the period covered by this guide.
Premises Standards for Registration
When applying for registration or licensing, the salon premises will be inspected by local authority environmental health officers. Standards typically require:
- Adequate floor space for the treatments performed
- Smooth, impervious, easily cleaned surfaces on floors, walls, and work surfaces in treatment areas
- Adequate hot and cold running water at workstations and separate handwashing facilities
- Sufficient lighting and ventilation
- Appropriate sterilization equipment (autoclave) for reusable instruments
- Separate clean and dirty zones for instrument processing
- Adequate storage for chemicals, products, and waste
- Proper waste disposal arrangements
Want to manage your salon compliance daily? Try MmowW Shampoo — your salon compliance OS. https://mmoww.net/shampoo/app/
Quick Decision Matrix
Find your salon compliance priority in 5 seconds.
| Your Situation | Priority Action | Go To |
|---|---|---|
| Opening a new salon | Licensing + registration before opening day | Chapter 2 |
| Chemical products and colour treatments | Chemical safety and ventilation requirements | Chapter 3 |
| Staff hygiene and infection control | Sanitation protocols and training | Chapter 4 |
| Preparing for health inspection | Inspection readiness review | Chapter 5 |
| Insurance and liability questions | Public liability and professional indemnity | Chapter 4 |
| Hiring stylists (employee vs booth rental) | Employment classification obligations | Chapter 6 |
5-second answer: Every salon needs a valid licence, chemical safety protocols, and infection control procedures. If you don't have all three, start with Chapter 2.