Making Tax Digital (ITSA) for Beauty Salon Owners: Preparing for April 2026

If you're a beauty salon owner operating as a self-employed therapist or running a salon business, you've probably heard about Making Tax Digital. You might be unclear on what it actually means for your salon. The reality is significant: from 6 April 2026, the way you report taxes changes fundamentally, and salons earning over £50,000 annually must comply.

Making Tax Digital (MTD) is HMRC's modernised tax system requiring digital record-keeping and quarterly reporting instead of annual self-assessment returns. For salon owners, this means moving from "complete a tax return once yearly" to "report salon income and expenses to HMRC every three months."