Welcome to our tax guide for self employed aesthetics practitioners
Are you a self employed aesthetics practitioner looking for help with your business accounts and personal tax returns?
About the Author
Sarah Blundell is a Fellow of the Association of Chartered and Certified Accountants (ACCA) and has more than 20 years of experience in the accounting field. As the founder of her own practice, she focuses on delivering outstanding fully digital services tailored for small businesses.
Sarah is a fully qualified chartered accountant with the ACCA. The Association of Chartered Certified Accountants is a global body for professional accountants that commits to acting in and upholding the public interest. This means you can be assured of our professional conduct and that your best interests are part of our core values.
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In this article we discuss:
- Introduction
- When Do I Need to Tell HMRC I Am Self Employed?
- How Do I Register as Self Employed With HMRC?
- What If I Have Made A Financial Loss?
- When Do I Need to File A Self Assessment Tax Return and Pay Tax?
- What Income Do I Pay Income Tax And National Insurance On?
- What Allowable Expenses Can I Claim On My Tax Return When I’m A Self Employed Aesthetic Practitioner?
- What Self Employment Expenses CAN’T I claim On My Tax Return?
- Can Making Pension Contributions Save Me Tax?
- How Do I Pay Any Tax Liability Due?
- What Are the Tax Thresholds and Rates for Self Employed?
- What Records Do I Need to Keep?
- How Can I Keep My Accounts & Business Finances Organised?
- Meeting Key Deadlines
- Do I Need to be VAT Registered?
- Which Aesthetic Services are VAT Exempt?
- Should I Set Up A Limited Company?
- What About Making Tax Digital (MTD)?
- Further Information
Introduction
This tax guide aims to give self employed aesthetic businesses carrying out medical treatments a better understanding of the tax requirements side of their business, which many aesthetics practitioners in the aesthetics industry may struggle with.
This guide is for both sole traders and limited companies. Any limited company guidance will be shown in blue text.
When you work for yourself in the UK beauty industry carrying out aesthetic treatments such as dermal fillers, soft tissue fillers and botox, self employment income you receive has no tax deducted from it at source. You have financial responsibilities to work out your own tax due on the profits of the business, then report and pay it to the HMRC tax office.
It is important to understand the tax implications of cosmetic treatments to ensure compliance and avoid penalties.
We cover when you need to tell HMRC you are sole trader in the aesthetics sector, how to register as a self employed aesthetics practitioner, sole trader self assessment taxes, and completing your annual tax return and accounts.
Working for yourself in the UK as a self employed individual in your own small business has so many benefits and can be a rewarding venture. You decide the rules, who you want to work for and when. Taxes, money and calculating your own taxable profit is often a factor that can put many sole practitioners off.
Simple Taxes are here to change that. Specialising in UK taxes, accounts, and self assessment tax returns for the self employed. Let your personal accountant worry about the tax requirements side of your business for you. We will offer advice and keep you tax efficient.
While using a professional accountant isn’t a legal requirement, it can be extremely beneficial. They will ensure you remain compliant with HMRC and Companies House legislation when it comes to your tax affairs. They should also be able to save you tax, saving you money in the long run.
When Do I Need to Tell HMRC I Am Self Employed?
When your annual turnover (gross income before expenses are deducted) goes over the £1,000 trading allowance in a tax year (6th April to 5th April), you will need to inform HMRC you are self employed.
If you setup a limited company and become a company director, you should register for self assessment. This is because any money you withdraw from your company will need to be declared as income on your self assessment tax return.
Once the tax year ends on 5th April that you exceed £1,000, you will need to inform HMRC by 5th October.
How Do I Register as Self Employed With HMRC?
This can be done online through the HMRC website. Or Simple Taxes can do this for you.
When you register, you will need to provide HMRC with various personal information such as your name, address, date of birth, national insurance number, etc.
Once HMRC have processed your registration, you will receive your unique taxpayer reference number in the post. You will need this unique taxpayer reference number to file your personal self assessment return.
What If I Have Made A Financial Loss?
If you make a loss in the tax year, due to your allowable expenses paid exceeding your income received, you will have no income tax bill, but you must still declare your self employment figures to HMRC. The loss can be carried forward and offset against future self employment profits. Alternatively, if you have employment income, the self employment loss can be set off sideways against your employment income, which may result in a tax rebate.
Limited company losses can also be carried forward against future profits, or carried back one year to receive a rebate if you originally paid corporation tax in the previous year.
When Do I Need to File A Self Assessment Tax Return and Pay Tax?
The tax year ends on 5th April each year. You then have until 31st January the following tax year to file your tax return and pay any tax due on any profits after expenses are deducted.
If your tax bill exceeds £1,000 you will be required by HM Revenue & Customs to pay tax payments on account towards the following tax year. The exact amount of payments on account are due on 31st January and 31st July.
What Income Do I Pay Income Tax and National Insurance On?
You will pay tax and National Insurance on your business profits. This is your total income in the tax year, less any business related expenses. You may also need to pay value added tax on your income before expenses, if you register for VAT.
If you have additional income sources such as PAYE income from employment, rental income, foreign income, savings interest, capital gains, investment income, any other income, etc, you will need to include these on your self assessment tax return too.
Limited company directors pay tax on the money they withdraw from their company.
What Allowable Expenses Can I Claim On My Tax Return When I’m A Self Employed Aesthetic Practitioner?
When calculating your taxable income for the year, you can claim allowable tax deductible work related expenses against your income, to arrive at your taxable profit figure.
Below is a list of deductible business allowable expenses you can write off as tax deductions against your business income in your tax returns. You can deduct the below tax deductible expenses from your aesthetics income as a business expense when you are a business owner.
Keeping a record of your income and deductible expenses for business purposes is so important when you are working for yourself. Aesthetic practitioners can significantly reduce their tax bill with their claimable expenses. Always keep hold of receipts and invoices. The more expenses aesthetic practitioners incur that they remember to claim, the less tax they will pay.
🌟 Accountancy fees – Simple Taxes
📢 Advertising & marketing – website, hosting, flyers, socials, content creators, images, online ads
💸 Bad debts – unpaid invoices
🏦 Bank charges – interest, card & online payment fees
📚 Bookkeeping software – QuickBooks (<—– use this link for 90% off for 7 months)
🛡️ Business insurance – e.g. PolicyBee – public liability, treatment cover
💻 Computer software – booking software, CRM, accounting tools
👥 Employees – wages, NI, contractor payments
🛠️ Equipment & tools – gloves, masks, needles, cannulas, tape, dressings, sharps bins, treatment couch, lighting, magnifying lamp, PPE
🏠 Home as office – portion of home bills (actual expense method)
🤝 Influencer marketing – e.g. Social Cat
⚖️ Legal & professional services – legal advice, professional fees, treatment licences
🎨 Materials & stock – skincare products, fillers, serums, peels, aftercare packs, uniforms, towels
📱 Mobile phone – % business use
🚗 Motor vehicle costs – mileage, fuel, insurance, repairs (for mobile clinics / home visits)
🎓 Professional subscriptions – regulatory bodies, associations, training organisations
📬 Registered office address – 1st Formations to protect your home address
🏢 Rent & rates – clinic, salon space, co-working, home office portion (internet, utilities)
✉️ Stationery & postage – office supplies, appointment cards, postage
🎓 Training – CPD, courses, masterclasses, compliance training
🧳 Travel & subsistence – to clients, training, conferences, travel insurance
🦺 Uniform – branded tunics, PPE, clothing not worn outside of work
What Self Employed Expenses CAN’T I Claim On My Tax Return?
Below are some examples of costs that freelance aesthetics practitioners may incur which are non deductible and CAN’T be claimed as an allowable expense:
- Any items used for personal
- Business trips that are extended to personal trips
- Childcare costs
- Client entertaining
- Fines e.g.: parking, speeding, unpaid tolls
- Food/meals unless working away from home
- Gym memberships
- Health insurance premiums
- Journey from home to usual workplace
- Late payment and filing penalties from HMRC
- Life insurance payments, unless ‘relevant life’ policy
- Personal deduction (s) of personal expenses: such as dry cleaning
- Uniform which can be seen as dual purpose
- Wages, tax and NI for yourself when trading as a sole trader
Can Making Pension Contributions Save Me Tax?
You might be curious about whether your private pension contributions can help you save on taxes. The good news is that they can, depending on your situation.
For sole traders, while pension contributions aren’t considered a business expense, they can still be advantageous when filing your self-assessment tax return if your earnings exceed £50,000. Your basic rate tax band can be increased by the amount you contribute to your pension.
If you operate a limited company, paying your pension contributions directly from the company into your pension fund is a very tax-efficient strategy. These contributions qualify as allowable expenses, which means you can benefit from corporation tax relief.
Online pension providers like Pension Bee offer a fantastic user-friendly platform to help you start building your pension savings.
How Do I Pay Any Tax Liability Due?
What Are the Tax Thresholds and Rates for Self Employed?
When you’re self-employed, your tax isn’t one flat rate — it’s made up of a few different layers depending on how much profit you make.
Instead of listing figures here, it’s much easier (and more accurate, as rates can change) to refer directly to HMRC’s official pages:
- Income Tax rates: https://www.gov.uk/income-tax-rates
- National Insurance (self-employed): https://www.gov.uk/self-employed-national-insurance-rates
- Dividend tax rates (if you also take income from a limited company): https://www.gov.uk/tax-on-dividends
In simple terms, your tax is usually made up of:
- Income Tax on your profits
- National Insurance contributions
- Possibly dividend tax if you operate through a limited company
If you’re unsure how this applies to you, it’s always worth finding out, so you’re not caught off guard later in the year.
What Records Do I Need to Keep?
When you are a business owner you are legally required to keep all of your business records (bank statements, sales invoices, purchase and expenses invoices), for 6 years plus the current tax year.
This is incase HMRC ever ask you for proof of your figures. They can issue penalties if the required documents not available.
How Can I Keep My Accounts & Business Finances Organised?
Here are a few tips for keeping accurate detailed records and keeping on top of your business accounts and finances:
Open a business bank account – this keeps all of your business income and expenditure in one place, separate to your personal income, making completing your year end tax return 100x easier. A bank account is a legal requirement if you are trading as a limited company. Online banks such as Monzo offer low fees and a quick setup.
Use accounting software such as Quickbooks – keep on top of your bookkeeping on a monthly basis so you can see how your business is performing. Need help with bookkeeping and setting up Quickbooks? Simple Taxes can help.
Keep all of your receipts and bank statements in one place – either by keeping digital records on a cloud storage like Google Drive, Quickbooks, or in a box.
Meeting Key Deadlines
As a freelance business owner, staying on top of key dates and deadlines is crucial to avoid complications with your tax and National Insurance contributions. Here are some important dates and tips to keep in mind:
- Self-Assessment Deadline: The deadline for submitting your self-assessment tax return is 31 January following the end of the tax year. Make sure to file your return and pay any tax liability by this date to avoid penalties.
- Self-Assessment Payment on Account Deadline: If you expect to owe more than £1,000 in tax, you’ll need to make payments on account towards your tax liability for the following year. These payments are due on 31 January and 31 July each year.
- Limited company accounts filing deadline: 9 months after your year end. The exact date can be found by searching your company name on the Companies House website.
- Limited company confirmation statement deadline: 12 months after your date of incorporation. The exact date can be found by searching your company name on the Companies House website.
- Limited company monthly director payroll deadline: The 19th of each month. A director payroll for the optimum amount will ensure limited company directors get their annual qualifying year towards their state pension.
By meeting these key dates and deadlines and keeping accurate records, you can ensure you’re staying on top of your tax and National Insurance contributions and filing obligations as a self-employed aesthetics practitioner.
Do I Need to be VAT Registered?
If your total sales before expenses surpass the VAT threshold within a 12 month period you’ll need to register for VAT. Currently the VAT registration threshold is set at £90,000.
However, you can also choose voluntary VAT registration if it benefits your business.
Being VAT-registered means you’ll need to charge VAT (value added tax) to your customers, and submit VAT returns every quarter and pay VAT owed to HMRC.
This process involves keeping accurate records of all VAT transactions, including invoices, receipts, and bank statements.
Proper record-keeping is essential for VAT registered businesses to ensure that your VAT returns are accurate and that you can claim back any VAT on business expenses.
When you register your aesthetics business for VAT it can enhance your business’s credibility and allows you to reclaim VAT on purchases, potentially improving your cash flow.
You can easily register for VAT by appointing an accountant, or you can do it yourself online via your Government Gateway account on the HMRC website. For more details, you can visit the HMRC site HERE .
Which Aesthetic Services are VAT Exempt?
Some aesthetics treatments may be subject to VAT exemptions if they are for a medical clinical purpose / medical condition, and they are carried out by qualified registered medical professionals. A qualified medical professional can be a doctor, optician, osteopath, nurse, or chiropractor. Documented records must be kept of the particular treatment to prove the medical necessity for VAT exempt services.
Simply put aesthetic professionals should know:
Purely cosmetic treatments are vatable if your business is VAT registered
Medical consultations and treatments for medical purposes are VAT exempt
In the First Tier Tribunal case of Skin Rich Ltd, the issue was whether the VAT treatment of fungal nail treatments and botox could be VAT exempt as health and welfare services. The decision was that they are not exempt as they didn’t need the definition of medical care, and the business carrying out the treatment was not ‘state regulated’.
So as you can see, VAT registration and it’s quarterly tax and filing your VAT return can be complex! Knowing which medical treatments fall under VAT payable and and which fall under a VAT exemption can be a tricky area. It is a good idea to appoint an accountant to carry out the work for you, to assist with your VAT return, telling you how much VAT you need to pay, or claim any VAT repayments. They will also be able to advise you on good record keeping, and assist with any VAT inspections that may come your way.
Should I Set Up A Limited Company?
If you are currently trading as a sole trader, as your sole proprietorship expands, switching to a Limited Company might be a smart move. This change can provide several advantages, including limited liability that protects your personal assets from business obligations, enhanced tax efficiency through improved planning strategies, a more professional image that can attract customers and suppliers, and greater ease in securing funding.
However, it also brings some drawbacks, such as increased administrative responsibilities, potentially higher accounting fees, and reduced privacy since your business information will be accessible on Companies House. It’s wise to consult an accountant / tax specialist if you have any questions.
What About Making Tax Digital (MTD)?
Making Tax Digital (MTD) is HMRC’s move towards a fully digital tax system. Instead of doing everything through one big Self Assessment tax return at the end of the year, self-employed people will gradually move to keeping digital records and sending updates to HMRC using approved software throughout the year.
This doesn’t happen all at once — it’s being introduced in stages. From April 2026, it will apply to sole traders with income (before expenses) over £50k, and more people will be brought in over the following years.
What this means for you in real terms is:
- You’ll need to keep your bookkeeping up to date in software
- You’ll submit updates to HMRC during the year, rather than just once annually
- You’ll need MTD-compatible software like QuickBooks to stay compliant – see our discount link at the top of this blog for an introductory 90% off.
👉 You can read more about Making Tax Digital directly on the HMRC website here:
https://www.gov.uk/government/publications/making-tax-digital
Further Information
For further information on self employment, please read the HMRC guidance here.
If you are unsure how much tax you need to pay, need help with your taxes, tax relief and tax return get in touch with our expert team today for tailored advice, at www.simpletaxes.co.uk.
Send your details to Simple Taxes today, for a fast reply within 24 hours from your own dedicated accountant.
Disclaimer
The information contained in this blog is for general information purposes only, and not for accounting and tax advice. You should speak to a qualified professional about your specific circumstances before acting upon any of the information in this blog.
We are happy to be affiliates for several of the suppliers mentioned in this blog and across our website. This means that if you decide to make a purchase after clicking one of our links, we might earn a commission at no additional cost to you. We suggest these suppliers because we believe they offer valuable products and services, not just because of the small commissions we could earn.
Last Updated: April 2026
