Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many compliance investigations were (a) opened and (b) closed by HM Revenue and Customs on businesses classified under Standard Industrial Classification codes (a) 96020 (hairdressing and barbering) and (b) 96090 (nail and beauty services) in each year since 2020; and what the total (A) number and (b) value was of (1) penalties issued, (2) cash seizures and (3) civil recovery actions taken under the Proceeds of Crime Act in those sectors.

HMRC does not hold specific data showing the number of hairdressers and nail salons investigated for tax non-compliance.

HMRC’s approach to tax compliance includes a range of activities that aim to both detect and tackle current non-compliance and change future behaviours. HMRC aims to help and support customers to understand their tax obligations and provides clear guidance to make it easy for them to get things right.

HMRC is aware that some workers and businesses in the hairdressing and beauty sector find it hard to understand their tax obligations. To help support these customers, HMRC has worked with trade bodies for this sector to develop new educational material including a YouTube video and has published guidance on GOV.UK to better explain the employment status and tax implications of different business models. Details can be found at: https://youtu.be/5o3au6PyXG8 and https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty

Closing the Tax Gap is one of HMRC’s three priorities. The government is committed to measures which will raise over £7.5 billion additional tax revenue per year by 2029 to 2030. This includes the package to close the tax gap at Autumn Budget 2024 (£6.5 billion) and further messages at Spring Statement 2025 (over £1 billion).

As part of these packages, HMRC will receive extra funding over the next five years to recruit an additional 5,500 compliance staff and to fund 2,400 debt management staff.

HMRC has led multiple operations in the hair and beauty sector, specifically barbers and nail bars. For example, during March 2025, HMRC undertook a series of unannounced visits (including Turkish style barbers) across the West Midlands as part of a three-week operation conducted jointly with the NCA and other agencies. This exercise resulted in Police seizures under Proceeds of Crime provisions of more than £500k in cash and illegal funds.