When Jack and Ross Williams-Hirst opened their co-working space, Williams & Hirst, in the heart of Soho, their goal was to create a space that supports and celebrates this new era of the independent hairdresser that we find ourselves in.
In an exclusive series for Pro Hair, Jack and Ross share their experiences as skilful solo stylists and business entrepreneurs. This month, they discuss all things accountancy and taxes.
At Williams & Hirst, we’re all about celebrating independence, but we also know that with more freedom comes more responsibility, especially when it comes to your finances. Whether you’re just starting out or you’ve been working solo for a while, getting the right financial advice is crucial. Choosing a great accountant and understanding your numbers can take a huge weight off your shoulders and help your business thrive. Here are our top tips for getting to grips with your finances…
- Start With Your Salary Goals
Before you even begin looking at spreadsheets or tax returns, the first step is simple: decide what salary you want to earn. Be honest with yourself about what you need to live comfortably and what you’d like to be earning. Once you’ve got that figure, you can start working backwards, setting realistic targets per day, week and month to hit that goal. This also helps give you a clearer picture of what’s left after your ideal income, and how much you have to allocate towards stock, rent, equipment and ongoing education. And don’t forget to factor in holiday pay, even as an independent – you deserve time off, and your budget should reflect that!
- Find an Accountant You Can Trust
Your accountant shouldn’t just be someone you hear from once a year when your tax return is due. They should be a key part of your support system and someone who understands your goals, can help you spot opportunities and keeps you on the right financial track. Look for someone who has experience working with freelancers or people in the hair and beauty industry. It makes a big difference when your accountant understands the ebb and flow of your work, your expenses and how your income can vary throughout the year. We recommend scheduling a check-in at least every couple of months, even if it’s just a quick chat. Regular contact means there are no nasty surprises at tax time, and you can make smarter decisions as you go.
- Stay Ahead of the Tax Game
No one likes a last-minute tax panic. Keeping tabs on your finances throughout the year will help you understand what’s coming up and give you time to plan. Your accountant can help you keep a rough idea of how much tax you’re likely to owe, which means you can start setting that money aside early.
- Watch Out for VAT
VAT is another one to be aware of, especially if business is booming. The VAT threshold is currently £90,000 in turnover per year, and it can creep up on you faster than you think. Once you hit it, you’ll need to start charging an extra 20% on your services, which can affect your pricing and client communication. A good accountant will flag this in advance and help you make a plan.
- Take Control and Feel Confident
Ultimately, the more you understand your numbers, the more confident and in control you’ll feel. Having a trusted accountant and clear financial goals is part of building a strong, successful independent business. At Williams & Hirst, we believe that creative freedom should come with financial freedom too – and with the right advice, it absolutely can.
