“Disguised Employment” (also called false self-employment), which is when someone is officially treated as self-employed but in practice works like an employee.

In the UK, HMRC and employment tribunals look at the reality of the working relationship, not just what’s written in a contract.

For a chair renter in a salon, the test for genuine self-employment typically includes:

• Independence: You control your own hours and days of work.
• Own clients and payments: Clients pay you directly; you manage your own books and taxes.
• Own stock and tools: You buy and use your own supplies.
• No percentage commissions: You pay a flat rent, not a share of takings.
• No integration into the salon business: You aren’t managed, scheduled, or treated like a team member.
• Freedom to work elsewhere: You’re not tied exclusively to one salon.

If any of these points don’t apply, HMRC may decide you’re really an employee. Meaning the salon owner could be liable for unpaid tax, NI, holiday pay, and other employment rights.

For the worker, being caught in disguised employment can mean:

• Possible backdated tax and NI adjustments
• Changes in employment status
• Entitlement to holiday pay, sick pay, pension, etc. (but only after proving employee status)
• Risk of losing the current working arrangement

It’s a complex area and often comes down to evidence and patterns of work, not just labels.

If any of this applies to you and you have any doubts, email sabrahams@thefha.org.uk.
Your enquiry will be treated in the strictest confidence.