Focus on "gratuities"

Satisfied customers may leave a gratuity (or 'tip') for their stylist and/or shampooer. The size of any gratuity is left to the customer's discretion. Not all customers leave a gratuity. According to a survey by NOP Consumer Market Research reported in Hairdressers Journal International, only around 50% of salon clients leave 'tips' on a regular basis.

Some salons may find that few of their customers 'tip' on a regular basis. A downmarket barber, for example, whose clients include many students and others on a low income, might receive few or no gratuities. Other outlets may have a policy of refusing all 'tips'.

Any gratuities which are given to individual stylists (or other employees) do not form part of the business income, unless the operative in question is also the proprietor.

Pooling and redistributing gratuities or treating them as part of employees' wages may have implications for the salon's National Insurance and PAYE contributions.