Glossary
Key business, tax, and industry terms for UK beauty professionals — explained in plain English.
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ABT (Association of Beauty Therapists) A UK professional body for beauty therapists offering insurance packages, CPD courses, and business support. One of several trade bodies you can join - membership is voluntary but often gives you access to cheaper insurance. ACAS (Advisory, Conciliation and Arbitration Service) A free government-funded service that helps resolve workplace disputes. If you have a problem with an employer or a worker has a problem with you, ACAS offers free advice and runs Early Conciliation before any Employment Tribunal claim. Acrylic Nails Artificial nail extensions created by combining a liquid monomer with a powder polymer to form a hard protective layer over the natural nail. Requires Level 2 or 3 nail qualification and should only use EMA-based products, never MMA. Allergen Any substance that triggers an allergic reaction in a person. In beauty, common allergens include PPD in hair dye, latex in gloves, acrylate chemicals in nail products, and adhesive in lash extensions. Always patch test where required. Allowable Expenses Business costs you can deduct from your income before calculating tax. Includes things like products, tools, insurance, training courses, travel to clients, and phone bills. Only costs "wholly and exclusively" for business use count. Annual Investment Allowance (AIA) A tax relief that lets you deduct the full cost of qualifying equipment (like salon chairs, mirrors, or tools) from your profits in the year you buy them, up to a set limit (currently £1 million). Saves you paying tax on that amount. Anti-Wrinkle Injections Cosmetic injections (usually botulinum toxin) used to temporarily relax facial muscles and reduce the appearance of lines and wrinkles. A prescription-only medicine that must be prescribed by a qualified prescriber. Falls under the Amber or Red tier of the planned aesthetics licensing scheme. Appointment A pre-booked time slot for a client to receive a treatment or service. Managing appointments well is central to running a beauty business - no-shows and gaps between bookings directly hit your income. Apprentice Rate The minimum hourly wage for apprentices aged under 19, or aged 19 and over but in their first year of apprenticeship. Lower than the National Minimum Wage. Set annually by the government. Auto-Enrolment A legal requirement for employers to automatically enrol eligible workers into a workplace pension scheme. If you employ anyone (even one person), you must set this up. Does not apply if you are purely self-employed with no staff. Autoclave A machine that uses pressurised steam at high temperatures to sterilise reusable tools like tweezers, cuticle nippers, and metal instruments. The gold standard for sterilisation in beauty - UV cabinets do not achieve the same level of kill. BABTAC (British Association of Beauty Therapy and Cosmetology) A UK trade body for beauty professionals offering insurance, training, and industry recognition. Membership gives access to discounted insurance and a searchable directory for clients to find you. Balance Sheet A financial snapshot showing what your business owns (assets), what it owes (liabilities), and the difference between them (equity) at a single point in time. More relevant if you run a limited company than if you are a sole trader. Balayage A freehand hair colouring technique where colour is painted onto sections of hair to create a natural, graduated, sun-kissed effect. Requires advanced colour training. Typically commands a higher price than standard highlights. Barbicide A brand-name hospital-grade disinfectant solution widely used in salons and barbershops to disinfect tools like combs, scissors, and clipper guards. Tools must be fully submerged for the correct contact time to be effective. BIAB (Builder in a Bottle) A type of gel product used to strengthen and build up the natural nail. Applied like gel polish but provides more structure. Popular as a lower-maintenance alternative to acrylics. Bleach A chemical lightening product (usually containing hydrogen peroxide and a powder lightener) used to strip colour from hair. Requires careful application and knowledge of underlying pigments to avoid damage or unwanted tones. Blood-Borne Virus (BBV) A virus carried in the blood that can be transmitted through contact with infected blood. Includes Hepatitis B, Hepatitis C, and HIV. Relevant to any treatment where skin could be broken - tattooing, microblading, piercing, waxing, and barbering. Booth Rental Renting a private, enclosed space within a salon or studio. The renter is usually self-employed and runs their own business from the booth, controlling their own clients, prices, products, and hours. Botulinum Toxin The active ingredient in anti-wrinkle injections (commonly known by brand names). A prescription-only medicine that temporarily paralyses muscles. Must be prescribed by a doctor, dentist, nurse prescriber, or pharmacist prescriber. Brazilian Blow Dry A smoothing treatment that uses a keratin-based solution and heat to reduce frizz and straighten hair temporarily. Some products contain or release formaldehyde during application, which is a serious health risk. Always check the SDS and ensure proper ventilation. Break-Even The point where your total income exactly covers your total costs, so you are neither making a profit nor a loss. Knowing your break-even figure helps you set prices and understand how many clients you need per week to cover your expenses. Brow Lamination A treatment that restructures brow hairs using a chemical solution to make them sit in a uniform direction, creating a fuller, groomed look. Requires patch testing and proper training. Cancellation Policy A set of rules you publish telling clients what happens if they cancel or fail to attend. Typically includes how much notice is required and whether a fee or deposit will be kept. Essential for protecting your income. Capital Allowances Tax relief on items you buy for your business that have a lasting value, such as equipment, furniture, or vehicles. Instead of deducting the full cost in one go, you may spread the deduction over several years (unless AIA applies). Cash Buffer Money set aside in your business to cover unexpected costs, quiet periods, or emergencies. A general rule of thumb is to keep at least one to three months of expenses available. Cash Flow The movement of money in and out of your business over a period of time. Positive cash flow means more money is coming in than going out. Managing cash flow is one of the biggest challenges for self-employed beauty workers. CEST Tool (Check Employment Status for Tax) A free online tool from HMRC that helps you work out whether someone should be treated as employed or self-employed for tax purposes. Not legally binding but used as a starting point by HMRC. Chair Rental An arrangement where a self-employed professional rents a station or chair in a salon. The renter controls their own clients, pricing, products, and schedule. The salon owner provides the space and facilities. Chemical Peel A skin treatment where a chemical solution is applied to the face to remove dead skin cells and stimulate new cell growth. Depth ranges from superficial to deep. Deeper peels require more advanced training and may fall under stricter regulation. CIS (Construction Industry Scheme) A tax deduction scheme mainly for construction workers. Occasionally relevant to barbers or beauty workers who do construction work on the side. If a salon is deducting CIS from your pay, check your employment status - it may be wrong. Claim A formal request to your insurance company for payment after an incident covered by your policy. For example, if a client has an allergic reaction to a treatment and seeks compensation, you would make a claim on your treatment risk insurance. Class 2 NI (National Insurance) Flat-rate National Insurance contributions paid by self-employed people earning above the Small Profits Threshold. Paid through your Self Assessment tax return. Helps build your entitlement to the State Pension and certain benefits. Class 4 NI (National Insurance) Profit-based National Insurance contributions paid by self-employed people through Self Assessment. Calculated as a percentage of your taxable profits between set thresholds. Client Lifetime Value The total amount of money a client spends with you over the entire time they remain your client. Understanding this helps you see why keeping existing clients is often more valuable than constantly finding new ones. Client Retention The ability to keep your existing clients coming back. Measured as a percentage of clients who rebook. High retention means more predictable income and less need to spend time and money on marketing. Clinical Waste Waste that could cause infection or injury, including items contaminated with blood or bodily fluids. Includes used wax strips with blood spots, microblading needles, and used sharps. Must be disposed of using a licensed clinical waste contractor. Colour Correction The process of fixing or adjusting a hair colour result that has gone wrong or that the client is unhappy with. Often complex, time-consuming, and requires advanced training. Usually charged at a premium. Column (Client Column) A hairdressing term for the total number of clients a stylist sees in a working day or week. "Building your column" means growing your regular client base to fill your available appointment slots. Commission Split An arrangement where a salon-based worker receives a percentage of the treatment price as their pay, with the salon keeping the rest. Common structures are 40/60, 50/50, or 60/40 in favour of the worker, depending on who supplies products. Consent In data protection law, one of the legal bases for processing someone's personal data. The person must give clear, informed, specific agreement. In beauty, consent forms for treatments are a separate (but related) concept covering agreement to receive a service. Constructive Dismissal When an employee resigns because their employer's behaviour has made it impossible for them to continue working. For example, if a salon owner fundamentally changes your role or creates a hostile environment. Only applies to employees, not genuinely self-employed workers. Consumer Rights Act 2015 UK law giving consumers rights when they buy goods or services. If a client pays for a treatment, they have a right to expect it will be carried out with reasonable care and skill. Relevant to complaints and refund requests. Control Test One of the legal tests used to determine employment status. It looks at how much control the business has over how, when, and where the work is done. More control suggests employment, less suggests genuine self-employment. Cooling-Off Period A 14-day right for consumers to cancel distance contracts (online or phone bookings) under the Consumer Contracts Regulations 2013. Applies when a client books remotely. Does not apply to in-person bookings or services already fully performed with consent. COSHH (Control of Substances Hazardous to Health) Regulations requiring anyone who uses chemicals at work to assess the risks, store substances safely, and provide safety data sheets. Applies to hair dyes, acrylics, cleaning products, nail liquids, and more. CQC (Care Quality Commission) The independent regulator of health and social care services in England. Currently does not regulate most cosmetic procedures, but some injectable treatments may come under its scope depending on future legislation. Critical Illness Cover An insurance policy that pays out a lump sum if you are diagnosed with a specified serious illness. Not specific to beauty but important for self-employed workers who have no employer sick pay to fall back on. Data Controller The person or organisation that decides why and how personal data is processed. If you collect client details, photos, or health information, you are the data controller and responsible for keeping that data safe under UK GDPR. Data Processor A person or organisation that processes personal data on behalf of the data controller. If you use a booking system or email marketing tool, that company is your data processor. You need a contract with them covering data protection. DBS Check (Disclosure and Barring Service Check) A criminal record check. A Basic check shows unspent convictions. Standard and Enhanced checks show more detail and are required for people working closely with children or vulnerable adults. May be needed for mobile workers visiting care homes. Defamation Act 2013 UK law covering libel (written) and slander (spoken) false statements that damage someone's reputation. Relevant if you face fake negative reviews or if you publicly criticise a competitor. A statement must cause "serious harm" to be actionable. Deposit An upfront payment taken from a client to secure a booking. Protects you against no-shows and last-minute cancellations. Your cancellation policy should clearly state whether deposits are refundable and under what circumstances. Dermal Filler An injectable substance (usually hyaluronic acid) used to add volume, smooth lines, or reshape facial features. Not currently a prescription-only medicine but subject to increasing regulation. Falls under the Amber or Red tier of the planned aesthetics licensing scheme. Dermaplaning A treatment where a surgical blade is used to gently scrape the surface of the skin to remove dead cells and fine vellus hair (peach fuzz). Requires proper training and single-use blades. Creates sharps waste that must be disposed of correctly. Developer A hydrogen peroxide-based product mixed with hair colour or bleach to activate it and open the hair cuticle. Comes in different strengths (volumes or percentages). Using the wrong strength can damage hair or cause scalp burns. Digital Markets, Competition and Consumers Act 2024 (DMCCA) UK law that bans fake reviews, paid-for reviews disguised as genuine, and review gating. Gives the CMA power to fine businesses up to 10% of global turnover. Came into force in 2025 and directly affects how beauty businesses collect and display reviews. Drawings Money you take out of your business for personal use. As a sole trader, your drawings are not a business expense and are not tax-deductible. You pay tax on your business profits, not on what you draw out. Early Conciliation A free process run by ACAS that must happen before anyone can make a claim to an Employment Tribunal. ACAS contacts both sides to try to resolve the dispute without a hearing. You have a set time limit to start this process. Effective Hourly Rate What you actually earn per hour after deducting materials, products, and other direct costs, and factoring in real time including setup, clean-down, travel, and gaps between clients. Often much lower than what your treatment price suggests. EMA (Ethyl Methacrylate) The safer monomer used in professional acrylic nail products. Unlike MMA, EMA bonds properly with the natural nail and can be safely soaked off. Always check that your acrylic liquid is EMA-based. Emergency Fund Personal savings set aside to cover your living costs if your income stops suddenly - for example, due to illness, injury, or a quiet patch. Financial advisers typically suggest three to six months of essential expenses. Employee (Legal Definition) A person who works under a contract of employment with an employer. Employees have the most employment rights, including unfair dismissal protection, redundancy pay, and statutory notice periods. Many salon workers called "self-employed" may actually be employees in law. Employer's Liability Insurance Legally required insurance if you employ anyone, including apprentices or part-time staff. Covers claims from employees who are injured or become ill because of their work. Minimum cover required by law is £5 million. Employment Rights Act 2025 Updated UK employment legislation strengthening worker protections. Builds on earlier employment rights acts and affects notice periods, dismissal rules, and statutory entitlements. Check the latest guidance if you employ staff. Employment Status Whether someone is legally an employee, a worker, or self-employed. This is determined by the reality of the working relationship, not by what the contract says or what either party calls it. Gets the tax treatment, rights, and protections wrong and both sides can face consequences. Employment Tribunal A court-like body that hears disputes about employment rights, including unfair dismissal, discrimination, and unpaid wages. Claims must go through ACAS Early Conciliation first. Endorsement In insurance, a change or addition to your policy that modifies the standard terms. For example, an endorsement might add cover for a new treatment you have started offering. Environmental Health The local authority department responsible for inspecting premises where beauty treatments are carried out. They check hygiene standards, waste disposal, and compliance with local byelaws. Can visit without warning. Equality Act 2010 UK law that protects people from discrimination based on nine protected characteristics: age, disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion or belief, sex, and sexual orientation. Applies to how you treat clients and staff. Excess The amount you must pay towards a claim before your insurance kicks in. For example, if your policy has a £250 excess and a client makes a £1,000 claim, you pay the first £250 and the insurer pays £750. Exclusion Something your insurance policy specifically does not cover. Common exclusions in beauty insurance include treatments you are not qualified to perform, claims arising from using banned substances like MMA, or working without a valid patch test. FHA (Freelance Hair and Beauty Association) A trade body specifically for freelance and mobile hair and beauty professionals. Offers tailored insurance, business resources, and support for people working outside traditional salon settings. Fire Risk Assessment A legal requirement for anyone responsible for a building or workspace. You must identify fire hazards, assess the risk, and put measures in place to reduce it. If you rent a chair or booth, check who is responsible - it may be the salon owner. First Aid The initial treatment given to someone who is injured or taken ill. If you work from premises, you should have a first aid kit appropriate to your treatments. There is no legal requirement for sole traders to hold a first aid certificate, but it is strongly recommended. Fiscal Year Another term for the financial year. In the UK, the government's fiscal year runs from 1 April to 31 March. Not the same as the tax year (6 April to 5 April). The tax year is the one that matters for your Self Assessment. Fixed Cost A business expense that stays the same regardless of how many clients you see. Examples include rent, insurance premiums, and software subscriptions. Understanding fixed versus variable costs helps you set prices and plan your finances. Fixed Rent A chair or booth rental arrangement where you pay the same amount every week or month regardless of how much you earn. Gives you certainty over costs but means you still pay full rent during quiet weeks. Flat Rate Scheme (VAT) A simplified VAT scheme where you pay a fixed percentage of your total turnover to HMRC instead of tracking VAT on every individual purchase and sale. Can simplify your bookkeeping if you are VAT-registered. Formaldehyde A chemical sometimes found in or released by certain hair smoothing products (especially Brazilian blow dry solutions). It is a known carcinogen and respiratory irritant. Products releasing formaldehyde above safe limits should not be used. Always check the SDS. Gel Manicure A nail treatment using gel polish that is cured (hardened) under a UV or LED lamp. Lasts longer than regular polish - typically two to three weeks. Requires proper soak-off technique to avoid nail damage. GHS Hazard Symbols Globally Harmonised System symbols found on chemical product labels. Red diamond-shaped pictograms showing hazards like flammability, toxicity, irritation, or environmental danger. You should be able to recognise these on any products you use. Gift Voucher A prepaid voucher that a client buys for someone else (or themselves) to use towards treatments. Must comply with consumer law - clearly state expiry dates, terms, and any restrictions. Money received for vouchers is not income until the voucher is redeemed or expires. Government Gateway HMRC's online portal where you access your tax account, file Self Assessment returns, register for VAT, and manage other tax matters. You need a Government Gateway user ID and password to use it. Green Tier Under the planned aesthetics licensing scheme, the lowest risk category of non-surgical cosmetic procedures. Includes treatments like facials, lash lifts, and dermaplaning. Expected to require basic qualifications and local authority registration. Gross Profit Your total income minus the direct cost of providing your services (such as products and materials used on clients). Does not include overheads like rent, insurance, or phone bills - that comes off to give you net profit. Habia The Hair and Beauty Industry Authority. The UK government-approved body that sets standards for qualifications and training in hair, beauty, nails, and spa therapy. Does not regulate practitioners directly but defines what qualifications should cover. HEMA (2-Hydroxyethyl Methacrylate) A chemical found in some gel nail products that is a common cause of allergic contact dermatitis. HEMA-free gel products are increasingly available and recommended for clients with sensitivities or for reducing long-term allergy risk. Hepatitis B A blood-borne virus that can cause serious liver disease. Vaccination is available and strongly recommended for anyone performing treatments that could involve contact with blood - including barbers, microblading practitioners, and body piercers. Hepatitis C A blood-borne virus that attacks the liver. No vaccine is currently available. Spread through blood-to-blood contact. Strict hygiene, single-use sharps, and proper sterilisation of reusable tools are your main protection. Highlights A hair colouring technique where individual sections of hair are lightened using foils, a cap, or freehand painting. Creates contrast and dimension. Different from balayage, which uses a more freehand, blended approach. HMRC (His Majesty's Revenue and Customs) The UK government department responsible for collecting taxes. Handles Self Assessment, VAT, PAYE, National Insurance, and tax investigations. The people you file your tax return with. Hot Towel Shave A traditional barbering service where a hot, steamed towel is applied to the face before and during a wet shave with a cut-throat or safety razor. Requires proper hygiene procedures, disposable blades, and awareness of blood-borne virus risks. HSE (Health and Safety Executive) The national regulator for workplace health and safety in Great Britain. Sets and enforces standards. Most day-to-day enforcement for beauty businesses is done by your local authority's Environmental Health team, not the HSE directly. Hyaluronic Acid A naturally occurring substance in the body used as the main ingredient in most dermal fillers. Chosen because it integrates with tissue and can be dissolved if needed. Understanding what is in the products you use (or that are used on you) matters. Hybrid Model A business setup that combines more than one income stream or working arrangement. For example, renting a chair three days a week and doing mobile work two days, or splitting time between employed salon work and freelance bridal work. ICO (Information Commissioner's Office) The UK's data protection regulator. If you hold personal data about clients (names, phone numbers, health information, photos), you almost certainly need to register with the ICO and pay an annual fee. Currently £40 per year for micro-organisations. Income Protection An insurance policy that pays a percentage of your income if you cannot work due to illness or injury. Unlike critical illness cover, it pays a regular monthly amount rather than a lump sum. Especially important for self-employed workers with no employer sick pay. Infills A maintenance appointment for nail extensions (gel, acrylic, or BIAB) where the regrowth area near the cuticle is filled in with new product. Typically needed every two to three weeks to maintain the look and structural integrity of the nails. IPL (Intense Pulsed Light) A broad-spectrum light technology used for hair removal, skin rejuvenation, and treating pigmentation. Not technically a laser but often grouped with laser treatments. Requires specific training and may need local authority registration depending on your area. IR35 Tax legislation aimed at workers who supply services through a limited company or other intermediary but who would be employees if engaged directly. If you work through a limited company for one salon and they control your hours, clients, and methods, IR35 may apply to you. JCCP (Joint Council for Cosmetic Practitioners) An independent standards-setting body for non-surgical cosmetic practitioners in the UK. Maintains a voluntary register and sets competency frameworks for treatments like dermal fillers, chemical peels, and skin boosters. Not a regulator but increasingly referenced in industry standards. Keratin Treatment A hair smoothing treatment that coats the hair with a keratin protein solution and seals it with heat. Reduces frizz and can make hair easier to manage. Check the product's SDS for formaldehyde content before use. Laser A device that emits a concentrated beam of light at a specific wavelength, used in beauty for hair removal, skin resurfacing, tattoo removal, and treating vascular lesions. Requires specific qualifications, training, and may require local authority licensing or CQC registration depending on the treatment. Lash Extensions (Classic, Hybrid, Volume, Russian) Artificial lashes applied individually or in fans to the natural lashes using adhesive. Classic uses one extension per natural lash. Volume and Russian use multiple thinner extensions in a fan. Hybrid mixes both. Requires specialist training and proper adhesive safety measures. Lash Lift A treatment that curls and lifts the natural lashes using a chemical perming solution applied to a silicone shield. Gives the appearance of longer, more lifted lashes without extensions. Requires patch testing 24 to 48 hours before treatment. Legitimate Interest One of the legal bases for processing personal data under UK GDPR. You can process data without explicit consent if you have a genuine business reason and it does not override the person's rights. For example, keeping a client's booking history for service continuity. Limited Company A business structure where the company is a separate legal entity from you. Your personal assets are generally protected from business debts. Involves more paperwork (annual accounts, corporation tax, Companies House filings) than being a sole trader. Line-Up A barbering technique where the hairline is defined and shaped using clippers or a trimmer to create clean, sharp edges around the forehead, temples, and neckline. Also called an edge-up or shape-up. Local Authority Licensing Registration or licensing required by your local council to perform certain beauty treatments. Requirements vary by area but commonly cover skin piercing, tattooing, electrolysis, acupuncture, and sometimes laser/IPL. Check with your local Environmental Health team. Making Tax Digital (MTD) An HMRC programme requiring businesses to keep digital records and submit tax information using compatible software. Mandatory for VAT-registered businesses now. Extending to Income Tax Self Assessment for self-employed people earning over £50,000 from April 2026. Margin The difference between your selling price and your cost, expressed as a percentage of the selling price. If you charge £50 for a treatment that costs you £10 in products, your margin is 80%. Different from mark-up, which is calculated on cost. Mark-Up The amount you add to your cost price to set your selling price, expressed as a percentage of cost. If a product costs you £10 and you sell the service for £50, your mark-up is 400%. Different from margin, which is calculated on the selling price. Maternity Allowance A benefit for pregnant women who cannot get Statutory Maternity Pay - typically because they are self-employed or have recently changed jobs. Paid for up to 39 weeks. You need to have been registered as self-employed for at least 26 weeks in the 66 weeks before your due date. Medical Indemnity A type of insurance that covers bodily injury arising from medical or aesthetic treatments such as Botox, dermal fillers, and chemical peels. Different from standard beauty public liability or treatment risk insurance. Required by anyone performing prescription-only or advanced aesthetic treatments. Microblading A semi-permanent makeup technique where tiny hair-like strokes are created in the skin using a manual blade and pigment to enhance or reshape eyebrows. Requires specialist training, local authority registration, and strict hygiene including sharps disposal. Microneedling A skin treatment using a device covered in fine needles to create tiny punctures in the skin, stimulating collagen production. Requires training, single-use needle cartridges, and proper clinical waste disposal. May fall under the Amber tier of the planned aesthetics licensing scheme. Minimum Booking Value The lowest amount worth accepting for a booking, especially for mobile workers. Should cover travel time, fuel, setup, and still leave a worthwhile hourly rate. Helps prevent losing money on small jobs that take just as long to travel to as larger ones. MMA (Methyl Methacrylate) A cheap chemical monomer sometimes used in acrylic nail products. Banned for cosmetic nail use in many countries because it bonds too rigidly to the nail, can cause severe allergic reactions, and may cause nail bed damage. Always use EMA-based products instead. Mutuality of Obligation A legal concept used in employment status tests. It asks whether the business is obliged to offer you work and whether you are obliged to accept it. If both obligations exist, it points towards employment rather than self-employment. National Insurance (NI) Contributions paid by workers and employers that fund state benefits including the State Pension, Maternity Allowance, and bereavement benefits. Employees pay Class 1 through PAYE. Self-employed people pay Class 2 and Class 4 through Self Assessment. National Living Wage (NLW) The legal minimum hourly pay rate for workers aged 21 and over. Set annually by the government. Currently £12.21 per hour (from April 2025). Applies to employees and workers, not to genuinely self-employed people. National Minimum Wage (NMW) The legal minimum hourly pay rate for workers under 21 and apprentices. Rates vary by age group and are set annually. If you employ anyone, including a Saturday junior, you must pay at least the applicable rate. NEST (National Employment Savings Trust) A government-backed workplace pension scheme designed to make auto-enrolment simple for small employers. If you employ staff and need to set up a pension, NEST is one of the easiest options. Net Profit Your total income minus all business costs (products, rent, insurance, travel, phone, training, and everything else). This is the figure you pay Income Tax and National Insurance on. Also called taxable profit. NHBF (National Hair and Beauty Federation) The UK's largest trade body for hair and beauty businesses. Offers legal advice, business support, model contracts, HR guidance, and lobbying on behalf of the industry. Much of their best content is behind a paywall. No Claims Discount A reduction in your insurance premium earned by not making any claims during the previous policy year. Works similarly to car insurance. Making a claim may mean you lose your discount and face a higher premium at renewal. No-Show When a client fails to turn up for their appointment without cancelling. Costs you both the appointment time and potential income. A clear cancellation policy with deposits helps reduce no-shows. Non-Compete A clause in a contract that prevents you from working for a competitor or setting up a competing business within a certain area and time period after leaving. Must be reasonable in scope and duration to be enforceable. Common in salon employment contracts. Notice Period The amount of warning either side must give before ending an employment relationship. Statutory minimum is one week for each complete year of service (up to 12 weeks). Your contract may specify a longer period. Overhead Any ongoing business cost that is not directly tied to performing a specific treatment. Includes rent, utilities, insurance, software subscriptions, and marketing. Keeping overheads low is especially important when starting out. Patch Test A small application of product on the skin (usually behind the ear or inner elbow) done 24 to 48 hours before treatment to check for allergic reaction. Required before hair dye, lash and brow tinting, and some chemical treatments. Skipping it puts you and your client at risk and may void your insurance. PAT Testing (Portable Appliance Testing) Inspection and testing of electrical appliances to make sure they are safe to use. Includes hair dryers, straighteners, clippers, UV lamps, and steamers. Not a strict legal requirement for self-employed people, but strongly recommended and may be required by your landlord or insurer. PAYE (Pay As You Earn) The system employers use to deduct Income Tax and National Insurance from wages before paying employees. If you employ staff, you must operate PAYE. If you are genuinely self-employed, PAYE should not apply to you. Payments on Account Advance payments towards your next tax bill, required by HMRC if your Self Assessment bill is over £1,000. You pay two instalments (31 January and 31 July), each equal to half of the previous year's tax bill. Can catch new self-employed workers off guard. Percentage of Takings A pay arrangement where a salon-based worker receives a set percentage of the value of treatments they perform. Similar to commission split. The percentage and what it includes (products, card fees) should be clearly agreed in writing. Personal Accident Insurance Insurance that pays out a lump sum or weekly benefit if you are injured in an accident. Covers things like broken bones, burns, or loss of sight. Useful for self-employed workers who have no employer sick pay. Personal Allowance The amount of income you can earn tax-free each year. Currently £12,570 (2024/25). Applies to both employed and self-employed people. Starts to reduce if your total income exceeds £100,000. Policy Wording The full document setting out exactly what your insurance policy covers, what it excludes, the conditions you must meet, and how to make a claim. Always read the policy wording, not just the summary - the detail matters. PPD (Para-Phenylenediamine) A chemical found in many permanent hair dyes and some henna products. A common allergen that can cause severe reactions including swelling, blistering, and in rare cases anaphylaxis. This is why patch testing before hair colouring is essential. PPE (Personal Protective Equipment) Equipment worn to protect you from health and safety risks at work. In beauty, PPE includes gloves, aprons, face masks, and eye protection. You are responsible for providing your own PPE if you are self-employed. PPL (Phonographic Performance Limited) The UK organisation that collects licence fees on behalf of record labels and performers when their recorded music is played in public. Part of the combined TheMusicLicence alongside PRS for Music. Premium The amount you pay for your insurance policy, usually monthly or annually. Premiums vary based on the treatments you offer, your claims history, your turnover, and whether you employ anyone. Prescriber A qualified healthcare professional — doctor, dentist, nurse prescriber, or pharmacist prescriber — who can legally prescribe prescription-only medicines such as botulinum toxin (Botox). Non-prescribers cannot prescribe or administer these treatments without a valid prescription. Price Reduction A remedy under the Consumer Rights Act 2015 (section 56) where a client receives a partial or full refund when a repeat performance of the service is not possible or has not fixed the problem. The amount depends on how far the service fell short. Privacy Notice A document telling people how you collect, use, store, and protect their personal data. Required under UK GDPR. Should be available to clients before you collect their information - on your website, booking page, or as a printed notice in your workspace. Products Liability Insurance Insurance covering claims arising from products you sell or recommend to clients. If a client has a reaction to a retail product you sold them, this cover protects you. Often included in comprehensive beauty insurance packages. Professional Indemnity Insurance Insurance covering claims arising from professional advice or services you provide. If a client claims your advice caused them a financial loss (for example, recommending a treatment that caused damage), this cover responds. Often bundled with treatment risk insurance for beauty professionals. Protected Characteristics The nine characteristics protected by the Equality Act 2010: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. You cannot discriminate against clients or staff based on any of these. PRS for Music The UK organisation that collects licence fees on behalf of songwriters, composers, and music publishers when their music is performed or played in public. Works alongside PPL as part of the combined TheMusicLicence. Public Liability Insurance (PLI) Insurance covering claims from members of the public for injury or property damage connected to your business. If a client trips over your equipment or you spill product on their clothing, PLI covers the claim. Essential for all beauty professionals. Reasonable Care and Skill The legal standard that all services must meet under section 49 of the Consumer Rights Act 2015. A beauty treatment must be performed to the standard a reasonable person would expect from someone with your qualifications and experience. Rebooking Rate The percentage of clients who book their next appointment before leaving or within a short time after their visit. A high rebooking rate means more predictable income and a fuller diary. One of the most important metrics for a beauty business. Red Tier Under the planned aesthetics licensing scheme, the highest risk category of non-surgical cosmetic procedures. Expected to cover treatments like dermal fillers and certain energy-based devices. Will likely require the most advanced qualifications and potentially CQC oversight. Repeat Performance A remedy under the Consumer Rights Act 2015 (section 55) giving a client the right to have a service performed again at no extra cost if it was not carried out with reasonable care and skill. The first remedy a client should request before a price reduction. Restrictive Covenant A clause in a contract that limits what you can do after the contract ends. In beauty, this typically means not working within a certain distance of your old salon or not contacting former clients for a set period. Must be reasonable to be enforceable. Retainer A recurring payment made in advance to secure ongoing services or a regular booking slot. Less common in beauty than in other industries, but some freelance makeup artists and bridal stylists use retainers to hold dates. Revenue The total amount of money your business brings in before any costs are deducted. Also called turnover or gross income. Not the same as profit - revenue is the top line, profit is what is left after expenses. Review Gating The practice of selectively asking only satisfied clients for reviews while filtering out unhappy ones. Now treated as an unfair commercial practice under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Businesses must not cherry-pick who they invite to leave reviews. RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) Regulations requiring employers and self-employed people to report certain serious workplace injuries, diseases, and dangerous incidents to the HSE. Includes things like fractures, amputations, or a worker being off for more than seven days due to a workplace injury. Right to Erasure A right under UK GDPR that allows individuals to ask you to delete their personal data. Also called the "right to be forgotten." You must comply unless you have a legal reason to keep the data (for example, financial records you need for tax purposes). Risk Assessment A structured process of identifying hazards in your workplace, evaluating the risks they pose, and putting controls in place to reduce those risks. Required by law for all businesses. Should be written down and reviewed regularly. Run-Off Cover Insurance that protects you against claims made after you stop practising or let your policy lapse. Important because clients can make claims months or even years after a treatment. Some policies include run-off cover; others charge extra for it. SA100 The main Self Assessment tax return form. Covers your personal income, deductions, and tax due. If you are self-employed, you also complete the SA103 supplementary pages for your business income and expenses. SA103 The Self Assessment supplementary pages for self-employment income. Attached to your main SA100 return. This is where you report your business turnover, allowable expenses, and net profit. Save Face A PSA-accredited (Professional Standards Authority) register of aesthetic practitioners in the UK. Being listed on Save Face demonstrates that a practitioner has met independently verified standards for qualifications, insurance, hygiene, and consent procedures. SDS (Safety Data Sheet) A document provided by the manufacturer of a chemical product detailing its hazards, safe handling, storage, disposal, and first aid measures. You must keep an SDS for every chemical product you use and make it available to anyone who needs it. Part of your COSHH obligations. Safeguarding The actions taken to protect children and vulnerable adults from abuse, neglect, or harm. If you work with or near vulnerable people (for example, mobile work in care homes, or offering children's party services), you should understand basic safeguarding principles and may need a DBS check. Self Assessment The system HMRC uses to collect Income Tax from self-employed people and others with untaxed income. You report your income and expenses once a year. The online filing deadline is 31 January following the end of the tax year. Self-Employed Working for yourself rather than for an employer. You control how, when, and where you work, set your own prices, supply your own tools, and bear the financial risk if things go wrong. Your tax affairs are handled through Self Assessment. Sharps Bin A puncture-resistant, sealable container used to safely dispose of used needles, blades, and other sharp items. Required for any treatment involving sharps, including microblading, dermaplaning, and acupuncture. Must be collected by a licensed waste carrier. Simplified Expenses A way to calculate some business expenses using HMRC flat rates instead of tracking actual costs. Covers business mileage (45p per mile for the first 10,000 miles, then 25p), use of home for business, and living at your business premises. Skin Fade A barbering technique where the hair gradually transitions from very short (or shaved) at the sides and back to longer on top. Requires precision clipper and trimmer skills. One of the most requested modern barbering styles. Soak Off The process of removing gel polish, gel extensions, or acrylic nails by soaking the nails in acetone. Proper technique is important to avoid damaging the natural nail. Never peel or force products off. Sole Trader The simplest business structure in the UK. You run the business as an individual, keep all profits after tax, but are personally responsible for any business debts. Most self-employed beauty workers start as sole traders. SPMU (Semi-Permanent Makeup) Cosmetic tattooing techniques including microblading, lip blush, eyeliner tattoo, and scalp micropigmentation. Pigment is implanted into the skin using a needle or blade. Requires local authority registration, specialist training, and strict hygiene protocols. SSP (Statutory Sick Pay) The minimum sick pay employers must pay eligible employees. Currently £116.75 per week for up to 28 weeks. Self-employed people are not entitled to SSP, which is why income protection insurance is worth considering. Subject Access Request (SAR) A request from a person to see all the personal data you hold about them. Under UK GDPR, you must respond within one month and provide the information free of charge. Includes client records, notes, photos, and communication history. Substitution A legal concept used in employment status tests. It asks whether you have the right to send someone else to do the work in your place. If you can genuinely substitute another worker, it points towards self-employment rather than employment. Tax Code A code used by employers to calculate how much Income Tax to deduct from your pay through PAYE. The standard code (1257L) gives the full Personal Allowance. If your tax code is wrong, you could be paying too much or too little tax. Tax Year The UK tax year runs from 6 April to 5 April the following year. All Self Assessment deadlines, tax calculations, and allowances are based on the tax year. Not the same as the calendar year or the government's fiscal year. TheMusicLicence A single combined licence from PPL PRS Ltd covering both the recording rights (PPL) and the songwriting rights (PRS for Music) needed to play music in a business premises. Costs from about £238 plus VAT per year for a small salon. Required if you play any music clients can hear, including radio and streaming services. Time to Pay An arrangement with HMRC that allows you to pay a tax bill in instalments over an agreed period if you cannot afford to pay it all at once. You must contact HMRC before the payment deadline to set this up. Interest is charged on the outstanding amount. Toner A semi-permanent or demi-permanent hair colour product applied after lightening to neutralise unwanted tones (such as brassiness or yellow) and achieve the desired shade. An essential part of most blonde colour services. TPO (Trimethylbenzoyl Diphenylphosphine Oxide) A photoinitiator chemical used in some UV/LED-cured gel nail products. Being banned in UK gel nail products from September 2026 due to allergy concerns. Check your product ingredient lists and switch to TPO-free alternatives before the deadline. Trading Allowance A £1,000 tax-free allowance for self-employed income. If your total self-employed income is under £1,000, you do not need to register with HMRC or file a tax return. If it is over £1,000, you can deduct the allowance instead of claiming actual expenses (but not both). Trading Standards A local authority service that enforces consumer protection law, product safety, and fair trading. Relevant to beauty professionals in areas like product labelling, pricing transparency, and advertising claims. Can investigate misleading marketing. Treatment Risk Insurance Insurance covering claims from clients alleging harm from a treatment you performed. If a client claims a colour treatment damaged their hair or a wax treatment burned their skin, this cover responds. Essential for all hands-on beauty professionals. Often combined with professional indemnity insurance. Turnover The total income your business earns before any deductions. Also called revenue or gross income. Important because VAT registration becomes mandatory when your taxable turnover exceeds the VAT threshold. UK GDPR (UK General Data Protection Regulation) The UK's data protection law (retained from EU GDPR after Brexit). Requires businesses to handle personal data lawfully, fairly, and transparently. Applies to client records, booking systems, before and after photos, marketing lists, and anything else containing personal information. Underwriter The person or team at an insurance company who assesses the risk of insuring you and decides the terms, conditions, and price of your policy. If you offer unusual or high-risk treatments, the underwriter decides whether to cover them and at what cost. Unfair Dismissal Being sacked from a job without a fair reason or without following a fair process. Employees with two or more years of service can bring an unfair dismissal claim to an Employment Tribunal. Does not apply to genuinely self-employed workers. UTR (Unique Taxpayer Reference) A 10-digit number issued by HMRC when you register for Self Assessment. You need it every time you file a tax return or contact HMRC about your self-employment tax. Keep it safe - it does not change. UV Cabinet A small cabinet with ultraviolet lights used to store tools after cleaning. Often mistakenly described as a steriliser, but UV cabinets do not sterilise tools. They only help keep already-clean tools free from airborne contamination. For actual sterilisation, you need an autoclave. Variable Cost A business expense that changes depending on how many clients you see or treatments you perform. Examples include products used on clients, disposable gloves, and wax strips. The more clients you see, the higher your variable costs. VAT (Value Added Tax) A tax charged on most goods and services sold by VAT-registered businesses. The standard rate is 20%. Registration is mandatory when your taxable turnover exceeds £90,000 in any 12-month period. Below that threshold, registration is voluntary. VAT Threshold The level of taxable turnover at which you must register for VAT. Currently £90,000 (from April 2024). Once your turnover in any rolling 12-month period exceeds this, you must register. You can register voluntarily below this threshold if it benefits you. Vento Bands The ranges used by Employment Tribunals to calculate compensation for injury to feelings in discrimination cases. Set in three bands (lower, middle, upper) and updated annually. Relevant if you face or bring a discrimination claim. Awards can range from around £1,100 to over £56,000. Walk-In A client who turns up without a pre-booked appointment hoping to be seen. Some businesses welcome walk-ins to fill gaps; others work strictly by appointment. Your approach depends on your business model and how you manage your time. Walk-In Model A business model where clients arrive without appointments on a first-come-first-served basis. Common in barbershops. Can maximise chair utilisation but makes income less predictable and harder to plan staffing. Worker (Legal Definition) A legal category sitting between employee and self-employed. Workers have some employment rights (National Minimum Wage, holiday pay, rest breaks, protection from discrimination) but fewer protections than employees. Many beauty professionals who think they are self-employed may legally be workers. Working Capital The money available to cover your day-to-day business operations. Calculated as current assets (cash, money owed to you) minus current liabilities (bills you need to pay soon). Running out of working capital is one of the main reasons small businesses fail. Workplace Pension A pension scheme set up by an employer for their staff. If you employ anyone earning over £10,000 per year, you must auto-enrol them and contribute at least 3% of qualifying earnings. If you are self-employed, you need to arrange your own pension.
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