- ONS Consumer Spending Data (COICOP 12.1.1, 2025)
- ONS Business Population Estimates, VAT and/or PAYE based enterprises, SIC 9602 (as at March, 2009-2016 and 2025)
- HMRC VAT Registration Data (FOI2024/15284, extended to 2023-24 by FOI2026/87008)
- HMRC Self-Employment Data (FOI2024/200347)
- HMRC Flat Rate VAT Scheme Data (FOI2024/200347, extended to 2023-24 by FOI2026/87008)
- HMRC PAYE RTI and Survey of Personal Incomes regional data (FOI follow-up to FOI2023/51378, FOI2023/99768, FOI2024/15284 and FOI2024/200347)
- ONS Consumer Price Inflation time series (MM23), series L58X — CPIH annual rate, 12.1.1 Hairdressing and personal grooming establishments
First published: October 2025. Last updated: 27/08/2026 — Pending Request 3 (Section 8) has been answered: the VAT registration count, turnover, and Flat Rate Scheme tables (Sections 2-5) have been extended to 2023-24, and the regional table in Section 4 now shows both 2022-23 and 2023-24. Section 3 now also includes a real-terms (price-deflated) analysis of the 2023-24 turnover rise, using ONS's sector-specific CPIH series for hairdressing and personal grooming. Request 2 (ONS granularity) remains outstanding.
Correction notice — August 2026
This page's consumer spending figure and classification code have been corrected to match the primary ONS series, following the same correction applied to the companion Consumer Spending Analysis page. The figure was £9.10bn under COICOP 12.1.3; it is now £10.26bn (nominal, 2025) under the correct classification, COICOP 12.1.1 (ONS series CCRE). This changes the "gap" between consumer spending and formal business turnover from £3.00bn to £4.16bn. The formal business turnover (£6.10bn) and all ONS-sourced figures on this page are unaffected — they come from independent series that were not part of the error. The VAT-registered turnover figure below has since been updated separately, to 2023-24, following FOI2026/87008 (see the update note above).
Summary
This report presents official government data on the UK hair and beauty sector (SIC 96020), covering market size, business numbers, turnover, employment, and regional distribution. Three primary measurements provide different perspectives on sector size, from total consumer demand through formal business operations to large VAT-registered businesses only — and a 2009-2025 historical series now shows how the formal business tier has actually moved over time.
Total Consumer Market
Consumer spending on hair & beauty (2025)
ONS household survey data
Formal Business Sector
All VAT/PAYE registered businesses (March 2025)
50,400 businesses · up from £5.78bn / 49,320 businesses in March 2024
VAT-Registered Businesses
Businesses above £90k threshold (2023-24)
14,480 businesses · down from 14,900 in 2022-23
2009-2025 Growth
Formal business turnover, £3.88bn to £6.10bn
Business count up 97.6% over the same period
Understanding the Three Measurements
Why three different figures? Each measurement answers a different question about the sector:
- Consumer Spending (£10.26bn): Total market demand - what consumers actually spend
- Formal Business Turnover (£6.10bn, March 2025): Registered business supply - what formal businesses declare
- VAT-Registered Only (£3.42bn, 2023-24): Large operators - businesses above £90k threshold
The gaps between these figures reflect legitimate below-threshold operators, measurement methodology differences, tips/gratuities, and some informal economy activity. None of these figures is "wrong" - they measure different aspects of the market. Note the Formal Business and VAT-Registered figures currently reference different years (2025 and 2023-24 respectively) — this is now only a one-year gap, down from two years previously; see the note in Section 3 for what would be needed to align them fully.
1. Market Size Analysis
Three-Tier Market Measurement
Tier 1: Total Consumer Market (Demand Side)
ONS Consumer Spending Data (COICOP 12.1.1):
- What it measures: Total consumer expenditure on hair & beauty services
- Includes: ALL spending on hair/beauty regardless of business size or formality
- Coverage: Formal salons, mobile operators, chair renters, below-threshold businesses, tips
- Method: Household surveys asking "How much did you spend on hairdressing/beauty?"
- Represents: Total market demand - the complete consumer spending pool
- Best for: Understanding total market size and consumer demand trends
Source: ONS Consumer Trends, COICOP category 12.1.1 "Hairdressing salons and personal grooming establishments"
Tier 2: Formal Business Economy (Supply Side)
ONS Business Population Estimates (as at March 2025):
- What it measures: Declared turnover from formal businesses
- Includes: All VAT and/or PAYE registered businesses
- Business count: 50,400 total businesses
- Employment: 178,178 total employment; 161,261 employees
- Method: Business surveys and administrative tax data
- Represents: Formal business sector - what registered businesses report earning
- Best for: Tracking registered businesses and formal employment
Source: ONS Business Population Estimates, VAT and/or PAYE based enterprises, UK SIC 2007 Class 9602, as at March 2025. ONS caution: "Turnover values in this analysis should be treated with caution as they arise from sources that we are unable to verify."
For comparison, the March 2024 reading was £5.78bn turnover, 49,320 businesses, 179,236 employment, 160,602 employees — see Section 2a for the full 2009-2025 series.
The £4.16bn Gap Between Consumer Spending and Formal Business Turnover
Consumer spending (£10.26bn) - Formal business turnover (£6.10bn) = £4.16bn
This gap reflects:
- Legitimate below-threshold operators (self-employed under £90k)
- Tips and gratuities (included in consumer spending, not always in business turnover)
- Measurement methodology differences (household surveys vs business surveys)
- Chair renters and mobile operators not captured in business statistics
- Some informal economy activity
This gap does NOT indicate £4.16bn in tax evasion - most represents legitimate structural factors in how the sector operates and how data is collected.
Tier 3: VAT-Registered Businesses Only (Large Operators)
HMRC VAT Registration Data (2023-24):
- What it measures: Actual VAT returns from businesses above threshold
- Includes: ONLY businesses with turnover above £90,000
- Business count: 14,480 VAT-registered businesses
- Method: Actual VAT tax returns (verified government data)
- Represents: Large operators sector - businesses above VAT threshold
- Best for: Most reliable turnover data, but covers only around 29% of businesses
Source: HMRC VAT Registration Data, FOI2024/15284, extended to 2023-24 by FOI2026/87008
The £2.68bn Gap: Below-Threshold Businesses
Formal business turnover (£6.10bn, 2025) - VAT-registered turnover (£3.42bn, 2023-24) = £2.68bn
This gap is now calculated across a single year's difference (2025 vs 2023-24), narrowed from a two-year gap previously (2025 vs 2022-23), since the VAT-only series has been brought forward by one year. It should still be treated as broadly indicative rather than precise until both tiers are aligned to the same year.
Subject to that caveat, this represents businesses operating below the £90,000 VAT registration threshold. These are:
- Small salons and sole traders (turnover £30k-£89k)
- Mobile hairdressers and beauticians
- Part-time operators
- Micro-businesses registered for PAYE but below VAT threshold
These businesses operate completely legally, declaring income for Income Tax purposes but not required to register for VAT.
Market Structure Implications
- Highly fragmented: around 71% of formal businesses operate below the £90,000 VAT threshold
- Large informal/semi-formal economy: the gap between consumer spending and formal business turnover suggests substantial economic activity outside traditional business structures
- Concentrated in small operations: average turnover for below-threshold businesses estimated in the £70,000-80,000 range
- Regional concentration: London accounts for 27.0% of VAT-registered turnover (2023-24) despite being ~13% of UK population
Policy implications: Any policy affecting VAT thresholds, business rates, or employment regulations must consider that the majority of formal businesses operate below £90k turnover, with substantial additional economic activity in the below-formal-threshold space.
2a. The Formal Business Tier, 2009-2025
The single-year snapshots above answer "what does the sector look like now," but they can't show direction of travel. This table gives the full available run for the formal business tier (VAT and/or PAYE registered enterprises, SIC 9602), as at March of each reference year.
| Year | Count | Employment | Employees | Turnover (£'000s) |
|---|---|---|---|---|
| 2009 | 25,500 | 128,322 | 109,284 | 3,877,261 |
| 2010 | 25,375 | 128,019 | 109,250 | 3,943,701 |
| 2011 | 24,585 | 125,938 | 107,990 | 3,817,615 |
| 2012 | 27,920 | 142,599 | 123,059 | 3,850,975 |
| 2013 | 27,605 | 145,717 | 127,652 | 3,729,315 |
| 2014 | 29,410 | 154,069 | 136,223 | 3,832,696 |
| 2015 | 39,865 | 190,351 | 162,940 | 4,695,146 |
| 2016 | 40,590 | 185,513 | 158,825 | 4,777,326 |
| 2024 | 49,320 | 179,236 | 160,602 | 5,785,698 |
| 2025 | 50,400 | 178,178 | 161,261 | 6,103,278 |
Source: ONS ad hoc analysis, "Count, employment, employees and turnover (£'000s) of VAT and/or PAYE based enterprises in the UK for UK SIC 2007 Class 9602, Hairdressing and other beauty treatments," data as at March of each reference year 2009 to 2016 and 2025 (2024 figure from a separate single-year extract of the same series). ONS caution: "Turnover values in this analysis should be treated with caution as they arise from sources that we are unable to verify. The official turnover data may be requested from ABAPS@ons.gov.uk."
A gap in the published series (2017-2023)
We do not currently hold this series for 2017-2023. The table above is genuine and directly sourced for every year shown, but treat the 2016-to-2024/25 change as a single long jump, not a smooth trend, until the missing years are obtained.
2009-2025, headline changes:
- Turnover: £3.877bn to £6.103bn — up £2.226bn, +57.4% nominal
- Business count: 25,500 to 50,400 — up 24,900, +97.6%
- Employment (total, incl. proprietors): 128,322 to 178,178 — up 49,856, +38.9%
- Employees (excl. proprietors): 109,284 to 161,261 — up 51,977, +47.6%
A note on the 2014-2015 jump
Business count rises sharply between 2014 (29,410) and 2015 (39,865) — a 35.5% jump in a single year, well outside the trend either side of it. This coincides with the staging dates for pension auto-enrolment reaching smaller employers (2015-2017), which plausibly brought a wave of previously unregistered micro-businesses into PAYE registration for compliance reasons, rather than reflecting a sudden burst of new economic activity. This does not undermine the overall 2009-2025 growth picture, but it means the shape of the curve between 2014 and 2016 should not be read as organic year-on-year growth.
Most recent single year (2024 to 2025)
Comparing only the two most recent years available: turnover and business count both grew (+5.5% and +2.2% respectively), while employment held essentially flat — total employment (including proprietors) dipped slightly (-0.6%) while employees (excluding proprietors) rose slightly (+0.4%). Both employment moves are small enough to be within normal year-to-year variation. The accurate characterisation of the most recent year is "turnover and business count growing, employment stable" — not "employment increasing," which overstates one of two employment measures while the other moved in the opposite direction.
2. VAT Business Registrations
National Totals
VAT-Registered Businesses by Tax Year:
Note: These figures represent businesses with turnover above £90,000 (VAT registration threshold). Businesses below this threshold are not included in VAT registration data.
| Tax Year | Number of Businesses | Change vs Previous | % Change |
|---|---|---|---|
| 2018-19 | 14,300 | - | - |
| 2019-20 | 14,100 | -200 | -1.4% |
| 2020-21 | 13,200 | -900 | -6.4% |
| 2021-22 | 13,900 | +700 | +5.3% |
| 2022-23 | 14,900 | +1,000 | +7.2% |
| 2023-24 | 14,480 | -420 | -2.8% |
| Total Change 2018-24 | - | +180 | +1.3% |
Source: HMRC VAT Registration Data (FOI2024/15284; 2023-24 figure from FOI2026/87008)
2018-19 to 2023-24:
- Highest number in data series: 14,900 (2022-23)
- Lowest number in data series: 13,200 (2020-21, COVID-19 impact)
- Total change from 2018-19 to 2023-24: +180 businesses (+1.3%)
- Full recovery from COVID-19 decline by 2022-23, exceeding pre-pandemic levels; 2023-24 then gave back part of that gain
By Period:
- 2018-19 to 2019-20: -200 businesses (-1.4%)
- 2019-20 to 2020-21: -900 businesses (-6.4%) - COVID-19 impact
- 2020-21 to 2021-22: +700 businesses (+5.3%) - initial recovery
- 2021-22 to 2022-23: +1,000 businesses (+7.2%) - continued recovery
- 2022-23 to 2023-24: -420 businesses (-2.8%) - registration count pulls back even as turnover rises (see Section 3)
3. Sector Turnover Analysis
VAT-Registered Business Turnover (HMRC Data)
This is the most reliable turnover data, based on actual VAT returns. However, it covers only around 29% of businesses (those above £90k threshold), and the most recent year available is 2023-24 — one year behind the formal-business tier's 2025 figure.
| Tax Year | Total Turnover | Change vs Previous | % Change | Avg per Business |
|---|---|---|---|---|
| 2018-19 | £2.96 billion | - | - | £207,000 |
| 2019-20 | £3.08 billion | +£120m | +4.1% | £218,000 |
| 2020-21 | £2.54 billion | -£540m | -17.5% | £192,000 |
| 2021-22 | £3.12 billion | +£580m | +22.8% | £224,000 |
| 2022-23 | £3.15 billion | +£30m | +1.0% | £211,000 |
| 2023-24 | £3.419 billion | +£270m | +8.6% | £236,100 |
| Total Change 2018-24 | - | +£459m | +15.5% | - |
Source: HMRC VAT Registration Data (FOI2024/15284; 2023-24 figure from FOI2026/87008)
Key Observations (2018-19 to 2023-24):
- Total turnover increased from £2.96bn to £3.419bn (+£459m, +15.5%)
- COVID-19 caused significant turnover decline in 2020-21 (-17.5%)
- Strong recovery in 2021-22 (+22.8%), exceeding pre-pandemic levels
- Stabilisation in 2022-23 (+1.0%), then a stronger rise in 2023-24 (+8.6%)
- Average turnover per VAT-registered business: £236,100 (2023-24), up from £211,000 (2022-23) — consistent with a smaller number of registered businesses (Section 2) generating higher turnover per business
Is the 2023-24 turnover rise real growth, or just price rises passing through?
HMRC's VAT turnover figures are nominal — they record total £ value declared, with no way to separate "more treatments sold" from "the same treatments at a higher price." A common response to the +8.6% turnover figure is that this simply reflects cost-driven price increases (wages, rent, product costs) rather than genuine growth, so it is worth checking against an actual price series rather than asserting either way.
ONS publishes a CPIH component specifically for this sector: 12.1.1, "Hairdressing and personal grooming establishments" — the actual consumer price index for what customers pay for these services, not a general inflation proxy. Averaging its published monthly annual rate across each tax year (April to March) gives an approximate sector-specific price change of:
- 2022-23 (Apr 2022-Mar 2023): approximately +5.9%
- 2023-24 (Apr 2023-Mar 2024): approximately +4.8%
Deflating the nominal figures by the 2023-24 sector price rise (approximately 4.8%):
- Total turnover: +8.6% nominal → approximately +3.6% in real (volume-adjusted) terms
- Average turnover per VAT-registered business: +11.9% nominal → approximately +6.8% in real terms
Reading this result: price rises account for a bit more than half of the nominal turnover increase, consistent with the cost-increase explanation commonly given. But they do not account for all of it — a real-terms residual of a few percent remains, on both total turnover and turnover per business. Separately, because business count fell 2.8% over the same period (Section 2), part of the rise in average turnover per business is likely a compositional effect (smaller/marginal businesses deregistering, leaving a pool weighted toward larger operators) rather than every surviving business individually doing more volume or charging more — this dataset cannot distinguish between those two explanations.
Method notes: (1) the tax-year average is an approximation built from calendar-month annual rates published by ONS, not an official tax-year figure. (2) CPIH 12.1.1 measures retail/consumer prices — what customers pay per treatment — not a business input-cost index; if input costs (wages, rent, products) rose faster than menu prices, margins could still be under pressure even where turnover rose in real terms. (3) For broader context, headline UK CPI averaged approximately 7.3% over calendar year 2023 and approximately 2.5% over calendar year 2024 — sector-specific hairdressing/personal-grooming inflation ran below headline CPI in 2023 and above it in 2024.
Source: ONS series L58X, "CPIH ANNUAL RATE 12.1.1: Hairdressing and personal grooming establishments," Consumer price inflation time series (MM23).
Estimated Below-Threshold Business Turnover
Calculation Method
Based on ONS formal business turnover (£6.10bn, 2025) minus HMRC VAT-registered turnover (£3.419bn, 2023-24):
- Estimated below-threshold turnover: £2.68bn
- Number of below-threshold businesses: ~35,900 (2025 formal-business count of 50,400 minus 2023-24 VAT-registered count of 14,480, estimated)
- Average turnover per below-threshold business: ~£74,600
Note: This is an estimate derived from two different data sources with different methodologies and, currently, different reference years (2025 vs 2023-24) — now a one-year gap, narrowed from two years previously. Treat as broadly indicative until both tiers are updated to the same year.
4. Regional Distribution
VAT-Registered Businesses by Region, 2022-23 and 2023-24
| Region | Businesses 2022-23 | Businesses 2023-24 | Turnover 2023-24 | % of 2023-24 Turnover | Avg Turnover per Business (2023-24) |
|---|---|---|---|---|---|
| London | 3,100 | 2,972 | £922.8 million | 27.0% | £310,600 |
| South East | 2,600 | 2,610 | £587.5 million | 17.2% | £225,100 |
| East of England | 1,600 | 1,551 | £293.6 million | 8.6% | £189,300 |
| Scotland | 1,000 | 930 | £317.2 million | 9.3% | £341,100 |
| North West | 1,300 | 1,240 | £284.5 million | 8.3% | £229,400 |
| West Midlands | 1,100 | 1,033 | £248.0 million | 7.3% | £240,100 |
| South West | 1,200 | 1,157 | £230.3 million | 6.7% | £199,000 |
| East Midlands | 800 | 811 | £155.0 million | 4.5% | £191,100 |
| Yorkshire & The Humber | 900 | 894 | £154.6 million | 4.5% | £172,900 |
| Wales | 500 | 500 | £86.2 million | 2.5% | £172,400 |
| North East | 500 | 470 | £79.6 million | 2.3% | £169,400 |
| Northern Ireland | 300 | 312 | £59.8 million | 1.7% | £191,700 |
| TOTAL | 14,900 | 14,480 | £3.419 billion | 100% | £236,100 |
Source: 2022-23 column from HMRC VAT Registration Data (FOI2024/15284). 2023-24 columns from FOI2026/87008. Rows ordered by 2023-24 turnover share (highest to lowest). HMRC notes the regional breakdown is based on the address provided as the principal place of business for correspondence, which may not capture where all trading activity occurs, and excludes traders with a missing registered business address.
Regional Patterns (2023-24):
- London concentration: 27.0% of total VAT-registered turnover, the largest single region by turnover, though not the highest average turnover per business
- South East: Second largest region (17.2% of turnover)
- Top 3 regions by turnover: London, South East, Scotland account for 53.5% of VAT turnover
- Average turnover variation: Ranges from £169,400 (North East) to £341,100 (Scotland) — Scotland has the highest average turnover per business despite ranking third by total turnover, reflecting a smaller number of higher-turnover registered businesses
- London's average (£310,600) is second-highest, behind Scotland and above South East
- Business count fell in most regions between 2022-23 and 2023-24 (e.g. London -128, Scotland -70, North West -60), while East Midlands and Northern Ireland were the only regions to gain businesses — consistent with the national picture of fewer, larger registered businesses (Sections 2-3)
Historical Regional Trends (2018-19 to 2022-23)
London Region Growth
- 2018-19: £735.2m turnover, 2,700 businesses
- 2022-23: £804.4m turnover, 3,100 businesses
- 2023-24: £922.8m turnover, 2,972 businesses
- Change 2018-19 to 2023-24: +£187.6m turnover (+25.5%), +272 businesses (+10.1%)
South East Region Growth
- 2018-19: £565.9m turnover, 2,500 businesses
- 2022-23: £570.1m turnover, 2,600 businesses
- 2023-24: £587.5m turnover, 2,610 businesses
- Change 2018-19 to 2023-24: +£21.6m turnover (+3.8%), +110 businesses (+4.4%)
Figures corrected against FOI2023/51378 and FOI2024/15284, with 2023-24 added from FOI2026/87008.
Update: the follow-up request for regional PAYE employee data has been answered for 2023-24 and 2024-25; see Section 6 for the table, and Section 8 for the request's status. Regional self-employment estimates were answered for 2022-23 and 2023-24 — also in Section 6. The regional VAT registration, turnover and Flat Rate Scheme table above has separately been extended to 2023-24 (Section 8, Request 3). A separate FOI request to ONS on data granularity remains outstanding — see Section 8.
5. Flat Rate VAT Scheme Usage
The Flat Rate VAT Scheme is a simplification scheme for small businesses that allows them to pay VAT as a fixed percentage of their turnover rather than calculating VAT on individual transactions.
| Tax Year | Businesses Using Scheme | Change vs Previous | % of VAT-Registered |
|---|---|---|---|
| 2018-19 | 2,298 | - | 16.1% |
| 2019-20 | 2,435 | +137 | 17.3% |
| 2020-21 | 2,201 | -234 | 16.7% |
| 2021-22 | 1,770 | -431 | 12.7% |
| 2022-23 | 1,738 | -32 | 11.7% |
| 2023-24 | 2,042 | +304 | 14.1% |
Source: HMRC Flat Rate VAT Scheme Data (FOI2024/200347; 2023-24 figure from FOI2026/87008)
Flat Rate Scheme usage fell from 2,298 businesses (2018-19) to a low of 1,738 businesses (2022-23), before rising to 2,042 in 2023-24. The 2018-19-to-2023-24 net change is -256 businesses (-11.1%), but the most recent single-year move is a rise of 304 businesses (+17.5%) — the first increase in the series since 2019-20, and one that breaks what had looked like a steady multi-year decline.
What the 2023-24 rise means for the earlier decline narrative:
- As percentage of VAT businesses: rose from 11.7% (2022-23) to 14.1% (2023-24), though still below the 2018-19 level of 16.1%
- The consistent year-on-year decline previously described in this section (2018-19 to 2022-23) is not the current trend — 2023-24 is the first year of growth in the series since 2019-20
- Possible reasons for the reversal: scheme rule changes, businesses re-entering as they fall below growth-related eligibility limits, or a shift in accountant/adviser guidance — not something this data alone can distinguish
- The current majority of VAT-registered businesses (85.9%) still use the standard VAT scheme
6. Self-Employment and Regional Workforce Data
Self-Employed Workers in Sector
From HMRC Survey of Personal Incomes:
210,000 Self-Employed Individuals
Reporting income from hairdressing and beauty services. This figure is now confirmed for three consecutive years running — 2021-22, 2022-23, and 2023-24 — all at 210,000 nationally (2022-23 and 2023-24 regional totals round to 211,000; see rounding note below).
Sources: FOI2024/200347 (2021-22); FOI follow-up to FOI2023/51378, FOI2023/99768, FOI2024/15284 and FOI2024/200347 (2022-23 and 2023-24 regional breakdown)
Self-Employed Individuals by Region, 2022-23 and 2023-24
| Region | 2022-23 (thousands) | 2023-24 (thousands) |
|---|---|---|
| North East | 9 | 9 |
| North West | 24 | 24 |
| Yorkshire and The Humber | 19 | 18 |
| East Midlands | 17 | 17 |
| West Midlands | 19 | 18 |
| East of England | 24 | 25 |
| London | 20 | 19 |
| South East | 28 | 27 |
| South West | 19 | 21 |
| Wales | 9 | 9 |
| Scotland | 16 | 16 |
| Northern Ireland | 7 | 8 |
| UK | 210 | 210 |
Source: HMRC Survey of Personal Incomes estimate, SIC code 96020, by region, response to FOI follow-up request (Section 8, Request 1). Estimated number of self-employed individuals in thousands. Individual regional figures are rounded independently to the nearest thousand, so they sum to 211 in both years shown — one thousand above the published UK total of 210 in each case; this is a rounding artefact, not a data error.
Understanding Self-Employment vs Business Count
The 210,000 self-employed figure differs significantly from the 50,400 business count (2025) because:
- Chair renters: Legally self-employed but work in salons (may represent 30-40% of stylists)
- Multiple self-employed in single business: A salon might be one business but employ multiple chair renters
- Mobile operators: Self-employed without fixed business premises
- Part-time operators: Many declaring some income but below full business thresholds
- Below PAYE/VAT thresholds: Many self-employed not captured in business population data
PAYE Employees by Region, 2023-24 and 2024-25
The follow-up FOI request also returned HMRC PAYE Real Time Information (RTI) data on the number of PAYE employees in SIC 96020, by region, for the two most recent tax years available.
| Region | 2023-24 (thousands) | 2024-25 (thousands) |
|---|---|---|
| North East | 8 | 8 |
| North West | 20 | 20 |
| Yorkshire and The Humber | 13 | 13 |
| East Midlands | 12 | 12 |
| West Midlands | 15 | 15 |
| East of England | 17 | 17 |
| London | 35 | 35 |
| South East | 27 | 27 |
| South West | 13 | 13 |
| Wales | 7 | 7 |
| Scotland | 15 | 15 |
| Northern Ireland | 5 | 4 |
| UK | 187 | 186 |
Source: PAYE RTI statistics, SIC code 96020, by region, response to FOI follow-up request (Section 8, Request 1). Individual figures rounded to the nearest thousand; the sum of regional figures may not exactly equal the published UK total.
This is a different figure from the "employees" total elsewhere on this page — do not conflate them
Section 2a and the finding cards above cite an ONS "employees" figure of 161,261 (as at March 2025), from the ONS Business Population Estimates series. The PAYE RTI figure above is 186,000-187,000 for 2023-24/2024-25 — around 25,000 higher, and from an entirely different source (HMRC administrative payroll data, not ONS business survey/IDBR-based estimates).
The two series are not directly comparable without further work: they may differ in reference period, in whether they count employments or employees (RTI can count an individual more than once if they hold more than one PAYE employment in the sector), and in how they treat multi-site or multi-SIC businesses. We have not attempted to reconcile them here, and readers should treat "employees" (ONS) and "PAYE employees" (HMRC RTI) as two separate data points describing related but not identical things, rather than assume one supersedes the other.
Workforce Composition Summary
Business Entities:
- Total formal businesses (ONS): 50,400 (March 2025, VAT and/or PAYE registered)
- VAT-registered businesses (HMRC): 14,480 (above £90k threshold, 2023-24)
- Below-threshold businesses (estimated): ~35,900
Employment & Self-Employment:
- Self-employed individuals: 210,000 (confirmed 2021-22, 2022-23 and 2023-24, HMRC Survey of Personal Incomes)
- Total employment (ONS Business Population Estimates): 178,178 (March 2025)
- Employees (ONS Business Population Estimates): 161,261 (March 2025)
- PAYE employees (HMRC RTI, separate source, see caution above): 187,000 (2023-24); 186,000 (2024-25)
Market Value by Measurement:
- Consumer spending: £10.26bn (total market demand)
- Formal business turnover: £6.10bn (2025, all registered businesses)
- VAT-registered turnover: £3.419bn (2023-24, large operators only)
Still outstanding: the separate ONS FOI request on whether any dataset isolates self-employment status specifically for hairdressers and barbers (rather than broader groupings) remains open. See Section 8, Request 2.
8. Pending Data Requests
In the interest of showing our working in both directions — not just when checking other organisations' figures, but our own — the following requests have been submitted. This section is updated as responses are received, with corrections and additions made explicitly rather than silently.
Request 1: Regional PAYE employees and updated self-employment estimates (SIC 96020) — ANSWERED
Follow-up to FOI2023/51378, FOI2023/99768, FOI2024/15284 and FOI2024/200347. Requested:
- The number of PAYE employees in SIC Code 96020, by region, for 2023-24 and (if available) 2024-25.
- The Survey of Personal Incomes estimate of self-employed persons in SIC Code 96020, by region, for 2022-23 and 2023-24 (if available) — extending the response of 30 October 2024 (FOI2024/200347), which gave 2021-22 as the latest available year.
Status: Response received. Both tables have been added to Section 6: PAYE employees by region (2023-24 and 2024-25) and self-employed individuals by region (2022-23 and 2023-24). Both parts of the request were answered in full — no partial refusals or gaps to flag.
Request 3: VAT registration count, turnover and Flat Rate Scheme usage, extended to 2023-24 (SIC 96020) — ANSWERED
Follow-up to FOI2023/51378, FOI2023/99768, FOI2024/15284, FOI2024/200347 and FOI2026/49720 (refused under s.12(1), 9 June 2026). A narrower resubmission focused solely on the VAT registration data previously provided, requesting a one-year extension of the tables in FOI2024/15284 (business counts and turnover, by region) and FOI2024/200347 (Flat Rate Scheme users, by region), for 2023-24.
Status: Response received (FOI2026/87008, 27 August 2026). All three tables extended to 2023-24 and added to Sections 2, 3, 4 and 5. Request answered in full, with the same regional-address caveat HMRC has applied to previous responses in this series.
Request 2: Granularity of self-employment data specifically for hairdressers and barbers
A Freedom of Information request to ONS asking:
- Whether any ONS dataset (Labour Force Survey, Annual Population Survey, Business Register and Employment Survey, or other) breaks down employment status specifically for hairdressers and barbers, by SIC 96.02 or SOC 6221/6222, rather than by broader groupings that include them.
- If such a dataset exists, a request for the data or a link to its publication, with the relevant time series.
- If it does not exist at this granularity, confirmation of that fact and a description of the most granular data that does exist, including whether it is only available at a broader SIC section (e.g. sections R, S, T — "Other services") or broader occupational level.
- Whether ONS has, since January 2024, produced any bespoke analysis specifically covering self-employed hairdressers for a government department, parliamentary committee, or external organisation — and if so, details of that release and the requesting party (organisational identity only, no personal data).
- Whether any such bespoke release has been published, and if not, why not.
Status: Submitted to the ONS Freedom of Information Team. Still outstanding.
Once a response to Request 2 is received, this section — and the relevant tables above — will be updated, with any resulting corrections noted explicitly rather than silently edited in, consistent with how corrections have been handled elsewhere on this site.
7. Methodology & Data Quality
Data Sources
1. ONS Consumer Spending Data (COICOP 12.1.1)
- Household surveys asking about spending on hair/beauty
- Living Costs and Food Survey + Retail Sales Inquiry
- Extrapolated to UK population
- Part of National Accounts (GDP calculation)
- Published in Consumer Trends quarterly release
Strengths: Captures ALL consumer spending regardless of business formality
Limitations: Survey sampling error, household recall accuracy, includes tips/gratuities
2. ONS Business Population Estimates (VAT and/or PAYE based enterprises, SIC 9602)
- Ad hoc analysis series: count, employment, employees and turnover
- SIC 96020 (Hairdressing and other beauty treatment)
- Includes all VAT and/or PAYE registered businesses
- Based on Inter-Departmental Business Register (IDBR)
- Uses administrative data plus business surveys
- Data currently held for 2009-2016, 2024 and 2025 (as at March each year); 2017-2023 not yet obtained
Strengths: Comprehensive coverage of formal business sector; now spans a 16-year window
Limitations: ONS cautions "Turnover values in this analysis should be treated with caution as they arise from sources that we are unable to verify"; gap in the published series for 2017-2023
3. HMRC VAT Registration Data (FOI2024/15284, extended by FOI2026/87008)
- VAT-registered businesses by SIC code 96020
- Annual turnover by region
- Time series covering 2018-19 to 2023-24 tax years
- Based on actual VAT returns (verified tax data)
Strengths: Most reliable turnover data (actual tax returns), precise and verified
Limitations: Only captures businesses above £90k threshold (around 29% of total businesses); most recent year is 2023-24, one year behind the formal-business tier
4. HMRC Self-Employment Data (Survey of Personal Incomes)
- Self-employed individuals by sector classification
- 2021-22 tax year (FOI2024/200347)
- 2022-23 and 2023-24, with regional breakdown (FOI follow-up, Section 8 Request 1) — all three years confirm 210,000 nationally
5. HMRC Flat Rate VAT Scheme Data (FOI2024/200347, extended by FOI2026/87008)
- Businesses using Flat Rate VAT Scheme by region
- Historical data 2018-19 to 2022-23, extended to 2023-24
6. HMRC PAYE RTI Regional Employee Data
- Number of PAYE employees in SIC code 96020, by region
- 2023-24 and 2024-25 tax years (FOI follow-up, Section 8 Request 1)
- Administrative payroll data (Real Time Information), not survey-based — a distinct source from the ONS Business Population Estimates "employees" figure, see caution note in Section 6
Understanding Measurement Gaps
Consumer Spending vs Formal Business Turnover:
Why consumer spending (£10.26bn) exceeds formal business turnover (£6.10bn):
- Tips and gratuities: included in consumer spending, not always in business turnover
- Legitimate below-threshold operators: sole traders declaring income but below VAT/PAYE thresholds
- Chair renters: self-employed contractors whose income doesn't appear in salon VAT/PAYE returns
- Survey methodology differences: different data collection methods create apparent gaps
- Some informal economy: genuinely undeclared activity
Formal Business Turnover vs VAT-Registered Turnover:
Why ONS business turnover (£6.10bn, 2025) exceeds HMRC VAT turnover (£3.419bn, 2023-24):
- ~35,900 businesses below £90k VAT threshold (estimated): operating legitimately, declaring income for tax but not VAT-registered
- Different reference years: part of this gap reflects one year of genuine growth between 2023-24 and 2025 that the VAT-only series hasn't yet captured — narrowed from a two-year gap now that FOI2026/87008 has brought the VAT-only series forward to 2023-24
- All completely legal: these businesses have no obligation to register for VAT
ONS "Employees" vs HMRC PAYE RTI Employees:
Why the ONS Business Population Estimates employees figure (161,261, March 2025) differs from HMRC PAYE RTI (186,000-187,000, 2023-24/2024-25) — see Section 6 for the full caution. In short: different data collection method (business survey/IDBR vs payroll RTI), possible double-counting of individuals with multiple PAYE employments in RTI, and different reference points. Not reconciled in this report; presented as two distinct data points.
Data Quality Assessment
| Dataset | Reliability | Coverage | Best Use |
|---|---|---|---|
| Consumer Spending (£10.26bn) | Medium (survey-based) | Complete market | Total market size |
| Formal Business (£6.10bn) | Medium (mixed methods); turnover figures carry ONS's own verification caveat | Registered businesses | Business tracking; long-run trend (2009-2025) |
| VAT-Registered (£3.419bn) | High (tax returns) | ~29% of businesses | Large operator analysis |
| PAYE RTI employees (186k-187k) | High (administrative payroll data) | PAYE employments only; may double-count multi-job individuals | Regional employee headcount by tax year |
Calculations and Estimates
Direct Calculations:
- Average turnover per business: Total turnover ÷ number of businesses
- Year-on-year changes: Percentage and absolute changes between years
- Regional percentages: Regional turnover ÷ total UK turnover × 100
Estimates (Clearly Labelled):
- Non-VAT business count: ONS total businesses - HMRC VAT-registered businesses (currently cross-year, see caveat above)
- Estimated below-threshold turnover: ONS total turnover - HMRC VAT turnover (currently cross-year, see caveat above)
- Average below-threshold business turnover: Estimated gap ÷ estimated business count
Data Verification
All primary data in this report can be independently verified through:
- ONS Consumer Spending: Consumer Trends quarterly release, COICOP 12.1.1
- ONS Business Population Estimates: ad hoc request, contact IDBRDAS@ons.gov.uk (business population) or ABAPS@ons.gov.uk (turnover verification)
- FOI requests to HMRC using reference numbers: FOI2023/51378, FOI2023/99768, FOI2024/15284, FOI2024/200347, the Section 8 Request 1 follow-up, and FOI2026/87008 (Section 8 Request 3)
- ONS Consumer Price Inflation time series (MM23): series L58X, CPIH annual rate, 12.1.1 Hairdressing and personal grooming establishments — published monthly, freely available via the ONS website
- Cross-referencing with published HMRC statistics where available
9. Key Data Points Summary
Market Size (Three Measurements)
- Consumer spending: £10.26bn (2025) - total market demand
- Formal business turnover: £6.10bn (March 2025) - registered businesses
- VAT-registered turnover: £3.419bn (2023-24) - large operators
Business Population
- Total formal businesses: 50,400 (ONS, March 2025)
- VAT-registered: 14,480 (HMRC, 2023-24)
- Below VAT threshold: ~35,900 (estimated, cross-year)
Employment & Self-Employment
- Total employment (ONS): 178,178 (March 2025)
- Employees (ONS): 161,261 (March 2025)
- PAYE employees (HMRC RTI): 187,000 (2023-24); 186,000 (2024-25) — separate source, see Section 6
- Self-employed individuals: 210,000, confirmed for 2021-22, 2022-23 and 2023-24 (HMRC)
Formal Business Tier, 2009-2025
- Turnover: £3.88bn to £6.10bn (+57.4%)
- Business count: 25,500 to 50,400 (+97.6%)
- Employment: 128,322 to 178,178 (+38.9%)
- Employees: 109,284 to 161,261 (+47.6%)
- Data gap: series not currently held for 2017-2023
VAT Business Changes (2018-19 to 2023-24)
- Business count: 14,300 to 14,480 (+180, +1.3%)
- Turnover: £2.96bn to £3.419bn (+£459m, +15.5%)
- COVID-19 impact: -900 businesses, -£540m turnover (2020-21)
- Most recent year (2022-23 to 2023-24): business count -420 (-2.8%), turnover +£270m (+8.6%)
Regional Concentration (2023-24)
- London: £922.8m (27.0% of VAT turnover)
- South East: £587.5m (17.2%)
- Scotland: £317.2m (9.3%)
- Top 3 regions: 53.5% of total VAT turnover
Regional Workforce, Most Recent Years
- PAYE employees (2024-25): London highest at 35,000; North East and Northern Ireland lowest (8,000 and 4,000)
- Self-employed (2023-24): South East highest at 27,000; North East and Wales lowest (9,000 each)
Structural Characteristics
- Highly fragmented: majority of businesses below £90k threshold
- Average VAT business turnover: £236,100 (2023-24)
- Estimated below-threshold average: ~£74,600 (cross-year estimate)
- Flat Rate VAT usage: 14.1% of VAT businesses (2023-24), up from an 11.7% low in 2022-23