The Autumn Budget 2026: What Does It Mean for Your Nail Business

Whether you're a self-employed nail technician, working from home, running your own salon or employing a team, changes to tax and business regulations can have a real impact on how you manage your business.

With several proposed and upcoming changes affecting small businesses, understanding what applies to you is an important part of planning ahead.

At HONA, we know that running a successful nail business involves much more than creating beautiful nails. That's why we're breaking down the key topics covered in our Autumn Budget guide, from trading allowances and business rates to mileage, staff wages and Making Tax Digital.

Here's what nail professionals need to know and where to find further guidance.

1. Starting Out or Working Part-Time: What About the Trading Allowance?

Q: I'm doing a few clients alongside another job. What does this mean for me?

The supplied Budget information outlines an increase in the trading allowance from £1,000 to £3,000 from 6 April 2027.

This would allow eligible individuals to receive up to £3,000 annually in trading income without paying income tax on that income.

Importantly, trading income refers to the money your business receives before expenses are deducted, rather than your profit.

You can generally choose between claiming the trading allowance or deducting eligible business expenses, but not both against the same income.

For nail techs building a clientele alongside another job, it's worth understanding which approach is most appropriate for their circumstances.

Further information: Trading Allowance Guidance – GOV.UK

2. Salon Owners: Could Your Business Rates Change?

Q: Could my salon's business rates bill go down?

Business rates are a council charge on certain non-domestic properties, including eligible salon premises.

The supplied Budget information highlights potential business rates relief for qualifying smaller salons.

From 1 April 2027, eligible salons in England with a rateable value of up to £18,000 could pay no business rates, subject to the relevant rules and eligibility requirements.

It's important to remember that rateable value isn't the same as your rent or annual earnings. It is an official assessment of the property's rental value.

Business rates and relief schemes can also vary across the UK, so salons in Wales, Scotland and Northern Ireland should check their respective arrangements.

Further information: Business Rates Relief – GOV.UK

3. Home Salons: Do You Need to Pay Business Rates?

Q: What if I do nails from home?

Working from home doesn't automatically mean you'll need to pay business rates.

However, certain circumstances can affect whether part of your home is considered business premises.

For example, if you regularly welcome clients or have converted a dedicated space specifically for business use, it's worth checking whether any business rates obligations apply.

If no business rates are due, there is no bill for a relief scheme to reduce.

Our advice: If you're unsure how your home salon is classified, check with your local council or the relevant property valuation authority.

Further information: Working From Home and Business Rates – GOV.UK

4. Mobile Nail Technicians: What About Mileage?

Q: How do the changes affect me if I drive to my clients?

If you're a mobile nail technician, travel can be a regular business expense.

The supplied Budget information outlines the following mileage rates:

• 55p per mile for the first 10,000 qualifying business miles.

• 35p per mile for business miles above 10,000 from April 2027.

For self-employed nail techs using the simplified mileage method, these rates are used to calculate allowable business expenses rather than representing a cash refund for every mile travelled.

Keeping accurate records of your business journeys is important, particularly if you're travelling between clients throughout the week.

Further information: Simplified Expenses for the Self-Employed – GOV.UK

5. Employing a Team: What About Minimum Wage?

Q: What if I have staff?

For salon owners employing nail technicians, wage changes are particularly important when planning staffing costs, appointment pricing and profitability.

The supplied Budget information states that from 1 April 2027, the legal minimum hourly wage for workers aged 21 and over will increase to £13.21.

Different rates apply to younger workers and eligible apprentices.

If you employ a team, reviewing your wage costs ahead of any confirmed increase can help you understand whether adjustments to your service pricing or business budgets may be necessary.

Further information: National Minimum Wage and National Living Wage Rates – GOV.UK

6. Making Tax Digital: What Do Nail Techs Need to Know?

Q: What is Making Tax Digital?

Making Tax Digital (MTD) is a government initiative designed to modernise how eligible businesses keep financial records and report information to HMRC.

It involves using compatible software to maintain digital records and submit updates.

The supplied information highlights that individuals joining Making Tax Digital in April 2027 will not receive late-submission penalty points for their first four quarterly updates.

However, those updates are still required, and this arrangement doesn't remove existing tax-payment obligations or deadlines.

For self-employed nail technicians, it's worth checking whether Making Tax Digital applies to your income and when you may be required to join.

Further information: Making Tax Digital for Income Tax – GOV.UK

7. Tax Payments: Are the Rules Changing?

Q: Tax payments are changing, but when?

If you're self-employed, you may already be familiar with HMRC's Payments on Account system, which requires certain taxpayers to make advance payments towards their next tax bill.

The supplied Budget information states that from April 2029, the government plans to collect these payments in smaller, more regular amounts throughout the year.

This would change when payments are made, rather than automatically increasing the total tax owed.

For now, it's important to continue setting money aside for your tax obligations and following your existing payment deadlines unless HMRC confirms otherwise.

Further information: Understand Your Payments on Account – GOV.UK

What Should Nail Techs Do Next?

You don't need to become an accountant overnight, but understanding the changes that could affect your business is an important part of staying prepared.

Whether you're building your first client base, managing a home salon or running a larger business, start by identifying which areas apply to you.

Keep accurate records, review your business costs and check official guidance before making financial decisions.

Not every change will affect every nail technician, and eligibility can depend on your business structure, income and location.

If you're unsure how any of these changes could affect you, speak to a qualified accountant or check the latest information directly with HMRC.

At HONA, we're committed to supporting nail professionals beyond their products, with practical education and business guidance to help you build a business you're proud of.

Explore more advice in the HONA Business Mastery Hub.

This article is intended for general information and does not constitute personal tax, legal or financial advice.