HMRC owed after Witney salon goes into liquidation

A hair salon in Witney has entered liquidation, with HM Revenue & Customs (HMRC) listed among those owed money. The development highlights the financial pressures facing small salons and the ripple effects insolvency can have on staff, suppliers and local customers. This article explains the situation, what it means for those affected and practical precautions salon owners and workers can take.

What happened and why it matters

Local reporting confirms a Witney-based hair business has gone into liquidation and that HMRC is one of the creditors owed funds. While the details of the salon’s accounts and the precise sums involved were not disclosed in the initial report, the situation is a reminder of how tax liabilities, rent, payroll and other overheads can accumulate and overwhelm a small business.

For the wider hair industry this is significant for two reasons. First, small salons often operate on tight margins; a downturn in trading, rising costs or unexpected liabilities can quickly tip a business into insolvency. Second, when a salon closes or enters liquidation, unpaid invoices, staff wages and client bookings are disrupted — creating practical and emotional consequences for those who rely on these services or incomes.

What this means for staff, clients and suppliers

When a salon goes into liquidation, there are immediate questions for employees, customers with bookings or vouchers, and suppliers who have outstanding invoices. While outcomes vary, the following points are useful to bear in mind:

• Employees: Staff may be entitled to statutory redundancy pay, notice pay and unpaid wages — but these claims usually need to be submitted through official channels. Support and guidance bodies such as Citizens Advice, ACAS and the Insolvency Service can help clarify entitlements and how to make claims.
• Customers: If you have an upcoming appointment, deposit or gift voucher with the business, check communications from the salon or the liquidator. Vouchers and prepaid appointments are typically treated as part of the company’s assets, and refunds may not be guaranteed without a formal claims process.
• Suppliers and freelancers: Those owed money should register as creditors with the appointed insolvency practitioner and provide documentation to support claims.

Practical steps for each group include keeping records (contracts, payslips, receipts and email confirmations), contacting support organisations early and registering claims through the liquidator where required.

How salon owners can reduce insolvency risk

While not every business difficulty leads to liquidation, salon owners can take proactive measures to reduce risk and strengthen resilience. Consider these practical actions:

• Maintain clear financial records and regular cashflow forecasting to spot shortfalls early.
• Seek professional advice sooner rather than later — accountants, solicitors or insolvency specialists can help evaluate options such as restructuring, negotiation with creditors, or formal insolvency processes.
• Prioritise communication with staff, landlords and suppliers to negotiate payment terms where possible and avoid surprises.
• Diversify income streams — for example, retailing carefully chosen products, offering online consultations, or introducing appointment deposits to improve cash predictability.
• Understand legal obligations around payroll and tax, and retain proof of payments and filings to avoid disputes with authorities.

Business support is available from a range of sources, including trade associations, local business support hubs and government guidance on insolvency and redundancy procedures. Early, transparent steps often produce better outcomes than leaving issues to escalate.

Practical advice for affected customers and workers

If you are directly affected by this particular liquidation — as a client with a cancelled appointment, an employee facing uncertainty, or a supplier owed money — these practical actions will help you navigate the next steps:

• Gather documentation: payslips, contracts, receipts and any written confirmation of bookings or deposits.
• Contact the salon or appointed liquidator for official guidance and next steps; look for public notices or statements posted at the business or published online.
• Seek free advice from Citizens Advice or ACAS about employment rights and how to register claims.
• If you paid by card, check whether your card issuer offers chargeback protection for cancelled services.
• Follow local news updates and official insolvency filings to monitor creditor meetings or distribution outcomes.

Takeaway

The liquidation of a Witney hair salon, with HMRC among creditors, is a reminder of the financial fragility many small salons face. For employees, clients and suppliers, practical steps — gathering documentation, contacting advisers and registering claims — are essential. For salon owners, robust financial control, early professional advice and clear communication can reduce the risk of insolvency and improve recovery options.