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The short answer
The big costs of opening a UK barbershop are the lease (rent, deposit and legal fees), the fit-out, equipment, insurance and business rates. In England, retail, hospitality and leisure relief closed to new claims from 1 April 2026 and bills now use rate multipliers, while small business rate relief still removes the bill on a single shop with a rateable value of £12,000 or less. Budget each item from quotes, not averages.
A barbershop has low stock costs and steady repeat trade, which is why many Nigerian founders in the UK start one. The money goes in before the first cut: a lease, a fit-out that meets your landlord's and the council's expectations, chairs and equipment, insurance, and business rates that arrive whether or not the chairs are full. This guide sets out each cost, what the official rules say, and a worked budget you can adapt.
The lease
Most barbershops rent a shop unit. The rent is only part of the cost of the lease. Before you sign heads of terms, get these in writing:
- Rent and rent-free period: a landlord may offer months rent-free to cover your fit-out time.
- Deposit: can be several months' rent for a new business without trading accounts, and a landlord may ask for a personal guarantee.
- Term and break clause: a break gives you a way out if trade is poor.
- Repairs and service charge: a full repairing lease can make you responsible for the building's condition.
- Permitted use: the lease must allow a barbershop, and you should confirm with the council that the unit's planning use allows it before you spend on fit-out.
- Legal fees: you normally pay your own solicitor, and some landlords ask the tenant to pay theirs too.
Fit-out and equipment
Fit-out covers plumbing for basins, electrics for clippers and lighting, flooring, mirrors, stations and signage. Equipment is chairs, clippers, trimmers, sterilisers, towels and a booking and payment system. Prices vary widely by area and by whether you buy new or used, so get at least two quotes for the building work. If you register a company, the shop sign must show the company name: GOV.UK says the name must be displayed at the registered address and wherever the business operates.
Business rates and the 2026 changes
Business rates are worked out by multiplying the shop's rateable value by a multiplier, then taking off any relief. Two changes matter for anyone opening in 2026:
- GOV.UK says you cannot make a new claim for retail, hospitality and leisure relief for 2026 to 2027; from 1 April 2026 bills use rate multipliers instead.
- GOV.UK's small business rate relief page lists the 2026 to 2027 multipliers as 43.2p for small businesses (rateable value under £51,000), 48p standard, and 38.2p for small retail, hospitality and leisure properties under £51,000.
Small business rate relief still applies. If the shop is the only property your business uses, you pay nothing on a rateable value of £12,000 or less, and relief tapers from 100% to 0% between £12,001 and £15,000. GOV.UK's example is a rateable value of £13,500 getting 50% off. Check a unit's rateable value on GOV.UK's find a business rates valuation service before you agree the rent. More on reliefs is in our guide to business rates relief for a small shop.
Example: rates on two units (England, 2026 to 2027)
| Unit | Rateable value | Multiplier | Before relief | After small business rate relief |
|---|---|---|---|---|
| A | £11,000 | 43.2p | £4,752 | £0 (100% relief) |
| B | £13,500 | 43.2p | £5,832 | £2,916 (50% relief) |
| C | £16,000 | 43.2p or 38.2p | £6,912 or £6,112 | No relief (over £15,000) |
These are examples. Whether a barbershop is billed on the lower retail, hospitality and leisure multiplier is for your council to confirm, and City of London rates differ.
Insurance and staff
GOV.UK says employers' liability insurance is compulsory from the day you become an employer, from an authorised insurer, with at least £5 million of cover, and the fine for not being properly insured can be £2,500 a day. Public liability and treatment cover are not on that page but a landlord may ask to see public liability cover before handing over keys.
Many barbershops rent chairs to self-employed barbers instead of employing them. Whether someone is really self-employed depends on how the arrangement works in practice, not the label, so check HMRC's employment status guidance before you set the model. If you employ staff, you will need payroll and right to work checks; see hiring on UK Graduate visas for one common case.
A budget template
| Cost | Paid | Where the figure comes from |
|---|---|---|
| Rent deposit and first rent | Before opening | Heads of terms |
| Legal fees on the lease | Before opening | Solicitor's quote |
| Fit-out works | Before opening | Two or more builders' quotes |
| Chairs and equipment | Before opening | Supplier quotes |
| Company registration | Before opening | £100 online at Companies House |
| Insurance | Before opening, then yearly | Insurer's quote |
| Business rates | Monthly or yearly | Council bill, after relief |
| Working capital | First months | Your own estimate of fixed costs until trade builds |
Once trade picks up, watch the VAT registration threshold of £90,000 of taxable turnover over a rolling 12 months. A busy barbershop can reach it, and most of its customers cannot reclaim VAT. See the £90,000 VAT threshold.
Where Pryme fits
A Pryme Business Account can be opened from any country and holds GBP, NGN, USD and EUR. Payroll tools help you pay staff, and the Finance agent prepares records for a person to approve. This page is general information, not legal or tax advice.
Questions people ask
How much does it cost to open a barbershop in the UK?
It depends on the lease, the fit-out and the area, so build the budget from quotes. Fixed items you can check now include the £100 online Companies House fee and the shop's rateable value on GOV.UK.
Can a barbershop get retail, hospitality and leisure relief in 2026?
No new claims can be made for 2026 to 2027. GOV.UK says bills from 1 April 2026 use rate multipliers, including a lower 38.2p multiplier for eligible small retail, hospitality and leisure properties.
Will I pay business rates on a small barbershop?
Not if the shop's rateable value is £12,000 or less and it is the only property your business uses, under small business rate relief in England. Relief tapers between £12,001 and £15,000.
Do I need insurance to open a barbershop?
Employers' liability insurance is compulsory once you employ anyone, with at least £5 million cover. Public liability is not on that GOV.UK page, but a landlord may ask for it.
Sources
- GOV.UK: Small business rate relief · accessed Oct 2026
- GOV.UK: Retail, hospitality and leisure relief · accessed Oct 2026
- GOV.UK: Employers' liability insurance · accessed Oct 2026
- GOV.UK: Set up a private limited company - Register your company · accessed Oct 2026
- GOV.UK: Signs, stationery and promotional material · accessed Oct 2026
- GOV.UK: VAT registration - when to register · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.