Tessa Quinn
Hairdressers and beauty salons are now recognized by the UK government as a separate sector called the Personal Care sector. This means that hairdressers and beauty salons will no longer be classified under retail or hospitality when the government makes decisions. However, prior to this recognition, there was some ambiguity regarding the classification of hairdressers and beauty salons. Some sources suggested that they fell under the retail sector, particularly under the A1 classification for shops, retail, and hair salons, while others proposed that they might be categorized as D1 (non-residential institutions) for health services.
| Characteristics | Values |
|---|---|
| North American Industry Classification System (NAICS) | Beauty salons fall into category 8121 – Personal Care Services |
| UK Government Classification | Hair, beauty and spa are now recognised as a specific sector, i.e. Personal Care |
| Property Usage Classification | A1 (Retail) for shops/hair salons/post offices |
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What You'll Learn
Hairdressers are a type of retail shop
In terms of property usage classification, hairdressers typically fall under the A1 category, which is for shops, retail, and hair salons. This is different from beauty salons, which can fall under either the A1 or C3 categories. It's important to note that the classification can vary depending on the local council's definitions and requirements.
The North American Industry Classification System (NAICS) categorizes beauty salons, including hairdressers, under category 8121 - Personal Care Services. This category covers a wide range of services, including haircuts, styling, hair color, perms, nails, skincare, and tanning for both men and women.
While hairdressers are often considered a type of retail shop, it's worth mentioning that the UK government has recently recognized the hair, beauty, and spa industry as a specific sector called "Personal Care". This means that the industry will no longer be grouped with retail or hospitality when the government makes decisions. This change is a result of campaigning by various industry organizations, including the Hair and Barber Council, to highlight the size and scope of the personal care sector in the UK.
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Hairdressers provide personal care services
The classification of businesses as retail, hospitality, or another category, can have important implications for the business owner, as it may determine their eligibility for government support and the amount of tax they pay.
In the UK, hairdressers and beauty salons have traditionally been classed as retail businesses. For example, under the classification system for property usage, hairdressers are classed as A1 (retail). However, this classification system is primarily concerned with planning permission and does not necessarily reflect how a business is categorised for other purposes.
In terms of the services they provide, hairdressers and beauty salons could be considered to fall under the umbrella of 'personal care services'. This is certainly the case in North America, where, according to the North American Industry Classification System (NAICS), beauty salons fall into category 8121 – Personal Care Services. This category includes hair salons, barber shops, and a range of other services such as nails, skincare, and tanning.
In recognition of the distinct nature of the hair, beauty, and spa industry, the UK government has recently decided to recognise it as a separate sector, distinct from retail or hospitality. This means that when the government makes decisions, the hair and beauty sector will no longer be grouped with these other sectors. This change was the result of campaigning by industry organisations, including the British Beauty Council, the UK Spa Association, and the Hair and Barber Council.
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Beauty salons and hairdressers are similar
In terms of property usage classification, both beauty salons and hairdressers typically fall under the A1 category, which is for shops, retail, and post offices. However, there may be some variation, as beauty salons can also fall under the C3 category for home businesses, or the D1 category for non-residential institutions providing medical or health services.
Both types of businesses may require planning permission for changes of use, and there may be other regulations and requirements that they need to adhere to, depending on their specific circumstances and location.
In summary, beauty salons and hairdressers are similar in that they provide personal care services to clients and are classified under the same sector by the UK government. They also typically fall under the same property usage classification, but there may be some variation. Both businesses are subject to various regulations and requirements, and it is important for owners to be aware of these to ensure compliance.
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Hairdressers are not hospitality businesses
In the past, hair and beauty services were grouped with retail and hospitality. However, after campaigning from the industry, the UK government recognised hair, beauty, and spa services as a distinct sector called "Personal Care". This means that the government will no longer group these services with retail or hospitality when making decisions.
The classification of a business property can vary. In the UK, hair salons are classified as A1 (shops/retail) or C3 (home businesses), while beauty salons are classified as Sui Generis, requiring planning permission for any change of use.
The structure of a hairdressing business can vary as well. They can be sole-proprietorships, LLCs, or LLPs. Sole-proprietorships are single-owned salons where the owner assumes all financial and legal risks and rewards. LLCs (Limited Liability Corporations) and LLPs (Limited Liability Partnerships) offer more protection for the owners, with LLPs requiring at least two owners.
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Hairdressers are not restaurants or cafes
In terms of property classification, hairdressers typically fall under the A1 category for shops, retail, and hair salons. This is different from restaurants and cafes, which usually fall under the A3 category for hospitality businesses. The classification is based on the planning permission for the property and the type of business operating within it.
The distinction between hairdressers and restaurants or cafes becomes even more apparent when considering the recent recognition of the personal care sector by the UK government. Led by industry organizations, the government now recognizes hair, beauty, and spa as a specific sector, separate from retail and hospitality. This means that when the government makes decisions or provides support, hairdressers will be considered separately from restaurants or cafes, which fall under the leisure and hospitality sector.
Furthermore, the structure and operation of hairdressers differ significantly from restaurants or cafes. Hairdressers may be sole-proprietorships, LLCs, or LLPs, whereas restaurants and cafes typically have different ownership structures. The services provided, customer interactions, and day-to-day operations vary greatly between the two types of businesses.
In conclusion, while hairdressers may offer a different experience from traditional retail or hospitality businesses, they are not restaurants or cafes. They fall under the category of personal care services and have their own unique set of characteristics, industry recognition, and property classifications.
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Frequently asked questions
Hairdressers are considered part of the personal care services sector, which also includes beauty salons, nail bars, tanning shops, barber shops, and spas. While hairdressers were previously grouped with retail and hospitality, the UK government now recognises personal care as a distinct sector.
The classification of a property used for hairdressing can vary. In the UK, it typically falls under A1 (Retail) or C3 (Home Businesses), but may also be classified as B1 (Business/Offices) or D1 (Non-Residential Institutions). The specific classification depends on the local council's assessment and the property's usage.
Common business structures for hairdressers include sole-proprietorship, LLC (Limited Liability Corporation), and LLP (Limited Liability Partnership). A sole-proprietorship means the owner bears all financial and legal risks, but also receives all the credit. LLCs and LLPs offer more protection, with LLPs requiring two or more owners.
