A Cut ABOVE
Self-employed hairdressers, it’s time to make the switch to digital. Here’s how Shortcuts Aire can help you grow with confidence...
It’s a tax return but not as we know it and for self-employed hairdressers it could be a deal-breaker. The anticipated, long-delayed move by the taxman to digitalise the tax system means from April 2026 many freelancers and independents will have to file their tax return four times a year instead of the traditional once every 12 months.
Making Tax Digital (MAT) was introduced back in 2019 for those paying VAT and was scheduled for sole trader income tax two years later. MAT was designed to make tax admin simpler – at least that’s the theory, however the delay for sole traders since 2021 suggests HMRC recognised embracing technology could be a challenge, and incur additional costs for many. But a new deadline has been set, making MAT compulsory by April 2026 for sole traders with a gross income over £50,000 (in the year ending April 2025) and April 2027 for those earning £30,000. It won’t be long after that before those earning over £20,000 will have to comply.
“We’ve been taking hairdressers digital for more than 30 years and recognise that for many, technology is a hurdle to overcome rather than be embraced,” says Jo Burgess, founder of salon-specific software producer, Shortcuts. “That’s why we always focused on making our appointment booking system, including our new, free Shortcuts Aire - designed for freelance hairdressers -as easy to use as possible.”
Accountants have welcomed the move. Lewis Harding, accountant and director at Rhombus Accounting Limited in Goole, Yorkshire says: “Making Tax Digital is a big shift for sole traders and small businesses, but it does not need to be overwhelming. The right systems make all the difference. Having a modern, tech savvy accountant on hand is just as important. Someone who understands your software and your sector can help you work smarter, make better decisions and grow with confidence”
He’s spot-on; book-keeping software and MAT should make running a business easier and the government has published a list of compliant systems, some of which is free on its website to help ease the transition. Another major benefit is that by submitting your income and expenses every three months, you’ll get a tax update from HMRC that will show how much tax you owe so far, making budgeting for your tax bill easier.
Rachael Lomax (aka Copperqueen), freelancer and educator, is already digital and loving it. “It makes life so much easier. I used to have a receipts pile, but I was still always losing them. Now when I buy something for my business, I photograph the receipt immediately and upload it,” she says. “It’s as simple as that and means I don’t have that end-of-year panic to get my books sorted.”
The move to online record-keeping should lessen the tedium of bookkeeping for all freelancers, especially as many of the HMRC-compliant software systems will link directly to an accountant and upload automatically. “If you have an accountant, you may want to discuss the software options with them first. But if you are choosing yourself, you need a system that is compliant and that will create, sort and correct digital records of income and expenses; send quarterly updates, submit your annual return and be able to receive information from HMRC,” says Jo.
Some systems can also connect directly to a business bank account and credit card - Rachael’s links to her Monzo account - so transactions are automatically imported into the software. This could make life easier and reduce the panic of pulling together expenses at the last minute. Making Tax Digital might seem like a huge hurdle, but there are options, and some are more user-friendly than others. Whatever route you choose, now is the time to go digital.
Check out the newly-launched Shortcuts Aire at shortcutsaire.com or call 0161 972 4900