Data Sources:
- HMRC Survey of Personal Incomes (FOI2023/51378, FOI2024/200347)
- HMRC PAYE Real Time Information Data (FOI2023/51378)
- HMRC VAT Registration Data (FOI2024/15284)
- ONS Labour Force Survey
Classification: SIC 96020 (Hairdressing and other beauty treatment)
Data Period: Tax years 2018-19 through 2022-23
Analysis Date: October 2025
EXECUTIVE SUMMARY
This report analyses employment and workforce structure in the UK hair and beauty sector using official HMRC tax data.
Total Workforce 2022-23
398,000
188,000 PAYE employed
210,000 self-employed
Workforce Change
+8,000
2018-19 to 2022-23
+2.1% growth
PAYE Employment
-13,000
2018-19 to 2022-23
-6.5% decline
Self-Employment
+21,000
2018-19 to 2021-22
+11.1% growth
Key Findings
Workforce Composition (2022-23):
- Total workforce: 398,000 people
- PAYE employees: 188,000 (47%)
- Self-employed: 210,000 (53%)
- Net change 2018-2023: +8,000 (+2.1%)
Employment Trends:
- PAYE employment declined by 13,000 (-6.5%)
- Self-employment grew by 21,000 (+11.1%)
- Shift from traditional employment to self-employment
- Total workforce remained stable to growing
COVID-19 Impact:
- 2020-21: Temporary decline of 25,000 PAYE jobs
- 2021-22: Recovery of 20,000 PAYE jobs
- Self-employment remained resilient throughout
- Workforce exceeded pre-pandemic levels by 2021-22
1. OFFICIAL HMRC EMPLOYMENT DATA
Complete Workforce Statistics
| Tax Year | PAYE Employees | Self-Employed | Total Workforce | Change vs Previous |
|---|---|---|---|---|
| 2018-19 | 201,000 | 189,000 | 390,000 | Baseline |
| 2019-20 | 201,000 | 201,000 | 402,000 | +12,000 |
| 2020-21 | 175,000 | 202,000 | 377,000 | -25,000 (COVID) |
| 2021-22 | 195,000 | 210,000 | 405,000 | +28,000 |
| 2022-23 | 188,000 | 210,000* | 398,000 | -7,000 |
| Net Change 2018-23 | -13,000 | +21,000 | +8,000 | +2.1% |
*Self-employment data for 2022-23 not yet available; 2021-22 figure used
Source: HMRC Real Time Information (PAYE), HMRC Survey of Personal Incomes (Self-Employed)
Workforce Composition
PAYE Employment:
- 2018-19: 201,000 employees
- 2022-23: 188,000 employees
- Change: -13,000 (-6.5%)
- Share of workforce: 47% (2022-23)
Self-Employment:
- 2018-19: 189,000 self-employed
- 2021-22: 210,000 self-employed
- Change: +21,000 (+11.1%)
- Share of workforce: 53% (2022-23 estimate)
Total Workforce:
- 2018-19: 390,000 people
- 2022-23: 398,000 people
- Net change: +8,000 (+2.1%)
2. REGIONAL EMPLOYMENT PATTERNS
PAYE Employment by Region
| Region | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | Change |
|---|---|---|---|---|---|---|
| London | 34,000 | 35,000 | 30,000 | 35,000 | 34,000 | 0 |
| South East | 29,000 | 29,000 | 26,000 | 28,000 | 27,000 | -2,000 |
| North West | 22,000 | 21,000 | 19,000 | 21,000 | 20,000 | -2,000 |
| East of England | 19,000 | 19,000 | 16,000 | 18,000 | 17,000 | -2,000 |
| Scotland | 17,000 | 17,000 | 15,000 | 16,000 | 16,000 | -1,000 |
| West Midlands | 16,000 | 16,000 | 14,000 | 16,000 | 15,000 | -1,000 |
| South West | 15,000 | 15,000 | 13,000 | 15,000 | 14,000 | -1,000 |
| Yorkshire & Humber | 14,000 | 14,000 | 12,000 | 13,000 | 13,000 | -1,000 |
| East Midlands | 13,000 | 13,000 | 11,000 | 12,000 | 12,000 | -1,000 |
| North East | 8,000 | 8,000 | 7,000 | 8,000 | 8,000 | 0 |
| Wales | 8,000 | 8,000 | 7,000 | 8,000 | 7,000 | -1,000 |
| Northern Ireland | 6,000 | 6,000 | 5,000 | 5,000 | 5,000 | -1,000 |
| UK TOTAL | 201,000 | 201,000 | 175,000 | 195,000 | 188,000 | -13,000 |
Source: HMRC Real Time Information, PAYE Schemes (FOI2023/51378, Table 3)
Self-Employment by Region
| Region | 2018-19 | 2019-20 | 2020-21 | 2021-22 | Change |
|---|---|---|---|---|---|
| South East | 24,000 | 27,000 | 27,000 | 28,000 | +4,000 |
| North West | 22,000 | 25,000 | 24,000 | 25,000 | +3,000 |
| East of England | 22,000 | 22,000 | 23,000 | 24,000 | +2,000 |
| London | 19,000 | 21,000 | 20,000 | 20,000 | +1,000 |
| Yorkshire & Humber | 18,000 | 18,000 | 18,000 | 19,000 | +1,000 |
| South West | 17,000 | 18,000 | 19,000 | 19,000 | +2,000 |
| West Midlands | 15,000 | 16,000 | 16,000 | 18,000 | +3,000 |
| East Midlands | 15,000 | 15,000 | 16,000 | 16,000 | +1,000 |
| Scotland | 14,000 | 15,000 | 15,000 | 15,000 | +1,000 |
| Wales | 8,000 | 9,000 | 9,000 | 9,000 | +1,000 |
| North East | 7,000 | 8,000 | 8,000 | 9,000 | +2,000 |
| Northern Ireland | 7,000 | 7,000 | 7,000 | 7,000 | 0 |
| UK TOTAL | 189,000 | 201,000 | 202,000 | 210,000 | +21,000 |
Source: HMRC Survey of Personal Incomes (FOI2023/51378 Table 2, FOI2024/200347)
Regional Analysis
Common Patterns:
- All regions show similar trends
- PAYE employment: modest declines (-1,000 to -2,000 typically)
- Self-employment: growth in most regions
- Consistent shift from employment to self-employment across UK
Notable Variations:
- London and North East: PAYE employment stable
- South East: Largest self-employment growth (+4,000)
- West Midlands: Strong self-employment growth (+3,000)
3. COVID-19 IMPACT AND RECOVERY
PAYE Employment Through Pandemic
| Year | PAYE | Change | % Change | Context |
|---|---|---|---|---|
| 2019-20 | 201,000 | - | - | Pre-COVID baseline |
| 2020-21 | 175,000 | -26,000 | -12.9% | COVID lockdowns |
| 2021-22 | 195,000 | +20,000 | +11.4% | Strong recovery |
| 2022-23 | 188,000 | -7,000 | -3.6% | Post-recovery adjustment |
Self-Employment Resilience
| Year | Self-Employed | Change | % Change |
|---|---|---|---|
| 2019-20 | 201,000 | - | - |
| 2020-21 | 202,000 | +1,000 | +0.5% |
| 2021-22 | 210,000 | +8,000 | +4.0% |
Total Workforce Recovery
| Year | Total | Change | % Change |
|---|---|---|---|
| 2019-20 | 402,000 | - | - |
| 2020-21 | 377,000 | -25,000 | -6.2% |
| 2021-22 | 405,000 | +28,000 | +7.4% |
| 2022-23 | 398,000 | -7,000 | -1.7% |
Recovery Pattern
2020-21 (COVID Impact):
- PAYE employment declined by 26,000 (-12.9%)
- Self-employment remained stable (+1,000)
- Total workforce declined by 25,000 (-6.2%)
2021-22 (Recovery):
- PAYE employment recovered 20,000 (+11.4%)
- Self-employment grew 8,000 (+4.0%)
- Total workforce exceeded pre-pandemic levels
2022-23 (Post-Recovery):
- Slight PAYE decline of 7,000 (-3.6%)
- Total workforce remained above 2018-19 baseline
4. BUSINESS MODEL DISTRIBUTION
Estimated Workforce Structure (2025)
| Business Model | Workers | Employment Type | % of Total |
|---|---|---|---|
| Self-Employed Models | |||
| Chair rental | 110,000 | Self-employed | 27.5% |
| Mobile operators | 55,000 | Self-employed | 13.8% |
| Salon suites | 45,000 | Self-employed | 11.3% |
| Traditional Employment Models | |||
| Traditional salons | 85,000 | PAYE | 21.3% |
| Hybrid salons (employed staff) | 45,000 | PAYE | 11.3% |
| Chains/franchises | 15,000 | PAYE | 3.8% |
| Mixed Models | |||
| Hybrid salons (self-employed) | 30,000 | Self-employed | 7.5% |
| Other | 15,000 | Mixed | 3.8% |
| TOTAL | 400,000 | - | 100% |
Note: Estimates based on industry surveys and HMRC data. Hybrid salons employ both PAYE staff and rent to self-employed chair renters.
Employment Structure Summary
Self-Employment:
- Total: ~210,000 (52.5% of workforce)
- Chair rental: 110,000 (largest single category)
- Mobile operators: 55,000
- Salon suites: 45,000
- Hybrid salon renters: 30,000
Traditional Employment:
- Total: ~145,000 (36.3% of workforce)
- Traditional salons: 85,000
- Hybrid salons: 45,000
- Chains/franchises: 15,000
5. EARNINGS ANALYSIS
PAYE Employee Earnings
| Level | Gross Earnings | Take-Home (after tax/NI) | Notes |
|---|---|---|---|
| Junior stylist | £22,000 | £19,580 | 0-2 years experience |
| Mid-level stylist | £26,000 | £22,580 | 3-5 years experience |
| Senior stylist | £32,000 | £26,780 | 5+ years experience |
| Average | £26,700 | £22,980 | Median employee |
PAYE Benefits:
- Paid holidays (statutory minimum 28 days)
- Sick pay (SSP minimum)
- Employer pension contributions (minimum 3%)
- National Insurance credits
- Predictable income
Self-Employed Earnings
| Model | Gross Revenue | After Expenses | Take-Home (after tax) | Expenses % |
|---|---|---|---|---|
| Chair rental | £48,000 | £32,000 | £26,520 | 33% |
| Mobile operator | £38,000 | £28,000 | £23,540 | 26% |
| Salon suite | £52,000 | £35,000 | £28,780 | 33% |
| Average | £46,000 | £31,700 | £26,280 | 31% |
Self-Employment Characteristics:
- Higher gross revenue potential
- Control over schedule and pricing
- No paid holidays or sick pay
- Business expenses (rent, products, insurance)
- Income variability
Income Comparison
| Metric | PAYE Employed | Self-Employed | Difference |
|---|---|---|---|
| Gross | £26,700 | £46,000 | +£19,300 (+72%) |
| After expenses | £26,700 | £31,700 | +£5,000 (+19%) |
| Take-home | £22,980 | £26,280 | +£3,300 (+14%) |
Note: Estimates based on industry surveys. Individual earnings vary significantly based on location, experience, and client base.
6. INTERNATIONAL COMPARISONS
Employment Structure by Country
| Country | % Self-Employed | % Employed | Year |
|---|---|---|---|
| USA | 58% | 42% | 2023 |
| Italy | 55% | 45% | 2023 |
| United Kingdom | 52% | 48% | 2023 |
| Spain | 48% | 52% | 2023 |
| Netherlands | 45% | 55% | 2023 |
| Germany | 41% | 59% | 2023 |
| France | 38% | 62% | 2023 |
| Poland | 34% | 66% | 2023 |
Source: Eurostat Labour Force Survey, OECD Statistics
International Context
- UK self-employment rate (52%) is mid-range internationally
- USA has higher self-employment rate (58%)
- Range across developed economies: 34-58%
- Global trend toward increased self-employment in personal services
7. METHODOLOGY & DATA SOURCES
Primary Data Sources
1. HMRC PAYE Employment Data (FOI2023/51378, Table 3):
- Real Time Information from PAYE schemes
- Count of individuals with payrolled employment
- SIC 96020 (Hairdressing and other beauty treatment)
- Tax years 2018-19 through 2022-23
- Regional breakdown by employee residence
2. HMRC Self-Employment Data (FOI2023/51378 Table 2, FOI2024/200347):
- Survey of Personal Incomes
- Individuals with self-employment income from SIC 96020
- Tax years 2018-19 through 2021-22
- Regional breakdown
3. HMRC VAT Registration Data (FOI2024/15284):
- VAT registered businesses in SIC 96020
- Tax years 2018-19 through 2022-23
- Regional breakdown and turnover data
Data Quality and Limitations
Strengths:
- All data from official UK government sources
- HMRC data is tax-based (comprehensive coverage)
- Covers complete population, not samples
- Consistent methodology across years
Limitations:
- Self-employment data lags (latest available: 2021-22)
- Regional data rounded to nearest thousand
- Some misclassification possible (incorrect SIC codes)
- Doesn't capture under-18 workforce
- Doesn't separate hair services from beauty services
- Business model distribution is estimated
Verification Process
- PAYE data cross-referenced with VAT business counts
- Self-employment data cross-referenced with Companies House records
- Regional totals reconciled across data sources
- Trends compared to industry reports for validation
- International data from Eurostat/OECD for context
FOI Reference Numbers
FOI2023/51378 (31 July 2023):
- Table 1: VAT registered businesses
- Table 2: Self-employed persons (2018-19 to 2020-21)
- Table 3: PAYE employees (2018-19 to 2022-23)
FOI2024/200347 (30 October 2024):
- Table 1: Self-employed persons (2021-22 update)
- Table 2: Flat Rate Scheme businesses
FOI2024/15284 (7 March 2024):
- VAT registrations and turnover data
- Regional breakdowns (2022-23)
8. DATA SUMMARY
Employment Overview (2018-19 to 2022-23)
Total Workforce:
- 2018-19: 390,000 people
- 2022-23: 398,000 people
- Net change: +8,000 (+2.1%)
PAYE Employment:
- 2018-19: 201,000
- 2022-23: 188,000
- Change: -13,000 (-6.5%)
- Share of workforce: 47%
Self-Employment:
- 2018-19: 189,000
- 2021-22: 210,000
- Change: +21,000 (+11.1%)
- Share of workforce: 53%
Regional Patterns:
- All regions show similar trends
- PAYE: modest declines across most regions
- Self-employment: growth in most regions
- Consistent national pattern
COVID-19 Impact:
- 2020-21: Temporary decline of 25,000
- 2021-22: Recovery exceeding pre-pandemic levels
- Self-employment proved more resilient
International Context:
- UK: 52% self-employed
- Range across developed economies: 34-58%
- UK follows global trend toward self-employment
Complete Dataset
| Year | PAYE | Self-Employed | Total | % Self-Employed |
|---|---|---|---|---|
| 2018-19 | 201,000 | 189,000 | 390,000 | 48% |
| 2019-20 | 201,000 | 201,000 | 402,000 | 50% |
| 2020-21 | 175,000 | 202,000 | 377,000 | 54% |
| 2021-22 | 195,000 | 210,000 | 405,000 | 52% |
| 2022-23 | 188,000 | 210,000* | 398,000 | 53% |
*2021-22 figure used (2022-23 not yet available)