Accountant’s guide: preparing your nail & beauty business for the 2026/2027 tax year

Ria-Jaine Lincoln, founder of award-winning accountancy practice, The Beauty Accountant, offers up advice for the 2026/2027 UK financial year…

As UK nail and beauty businesses review their budgets for April, what do they need to consider?

“Making Tax Digital (MTD) – from 6 April 2026, sole traders earning over £50,000 will need to implement MTD-compliant systems. They should research the costs of this, and affordable solutions such as access to FreeAgent’s accounting software when a Mettle business bank account is opened, which is available at The Beauty Accountant.

“Systems and processes should be the main focus, along with navigating increasing employer costs and business rates. Now is a great time to check out any support that is available if you pay business rates.”

What are the biggest financial mistakes you see nail and beauty businesses making?

“Not tracking income or setting up systems/processes to make the day-to-day running of a business and money management easier. Incorrect accounting records can result in you overpaying tax.

“When beauty businesses set up their booking systems, often dedicated business bank accounts, bookkeeping processes and HMRC registration can be neglected. Cash flow and exit planning is something that is rarely considered in the early days of a business, but is so important – even for planning sales prices and spending budgets.”

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For nail and beauty pros who find money matters overwhelming, what would you suggest?

“Speak to a trusted professional or fellow business owner that understands, and don’t be afraid to utilise the gov.uk support pages to help navigate tax challenges.

“Create a one-page business plan and ensure that every business decision aligns with the plan, so that you are not overspending or second-guessing. Focus on your numbers and reverse engineer what you need to do to get there.”

What services does The Beauty Accountant offer?

• “Making Tax Digital-compliant software solutions, setup and submissions.
• “Bookkeeping, tax accounting and VAT.
• “Payroll.
• “‘Back office setup services’ to organise and automate admin/bookkeeping mailboxes and folders. This saves time, keeps costs down, ensures your accountant or bookkeeper is happy with your records, and keeps HMRC off your back.
• “All clients have access to our online finance hub, featuring tax and business guides, resources and on-demand learning.

“Access all of these services by emailing hello@thebeautyaccountant.co.uk or visiting www.thebeautyaccountant.co.uk.”