Beauty salon in garage space?

[BeauticiansDad]

Hello!

My daughter has been in the beauty business for some years and is frustrated by working all hours for peanuts!

As I have a 'vacant' [must admit there are a few bits and pieces in there!] garage, I thought I could convert it into a beauty room, so she could work there instead.

But whilst this looks easy, there must be pitfalls; I imagine you need permission from the council, some sort of insurance, a licence for background music, and of course to declare your income and to save for tax purposes..

Is there a potential change of use/council tax problem here, as it is part of a residential building?

What happens when we eventually move; is here some sort of valuation thing?? Oh what about my mortgage providing company?

Could she claim conversion decoration and set up expenses against her income?

Of course she will have to very work hard to get clients; But in your experience, are clients 'prepared to travel' to get to a private house?

There must be loads of you who have done this, so any hints please, you seem such a knowledgable lot; she is SO keen and I am equally keen to help her!

many thanks in advance..
B's Dad

 

[Faylizzie]

Sorry I can't help as I'm mobile but didn't want to read an run!
What a lovely dad you are!
Hope you find all the answers you need
I used to use a home salon to get my treatments done until she moved to a salon an she was always booked weeks in advance so I think people are happy to travel to a home salon.
You could always give your council a ring to get some answers on converting?
Xxxxx

 

[PixieBeauty]

Hello!

My daughter has been in the beauty business for some years and is frustrated by working all hours for peanuts!

As I have a 'vacant' [must admit there are a few bits and pieces in there!] garage, I thought I could convert it into a beauty room, so she could work there instead.

But whilst this looks easy, there must be pitfalls; I imagine you need permission from the council, some sort of insurance, a licence for background music, and of course to declare your income and to save for tax purposes..

Is there a potential change of use/council tax problem here, as it is part of a residential building?

What happens when we eventually move; is here some sort of valuation thing?? Oh what about my mortgage providing company?

Could she claim conversion decoration and set up expenses against her income?

Of course she will have to very work hard to get clients; But in your experience, are clients 'prepared to travel' to get to a private house?

There must be loads of you who have done this, so any hints please, you seem such a knowledgable lot; she is SO keen and I am equally keen to help her!

many thanks in advance..
B's Dad

What a lovely dad!!

You need to ring your council. There are differences across areas & it depends if they class it as a room in your house.

She needs to register as self employed with HMRC ASAP and yes every penny spent converting it will be taken from the business. Say it costs £5k to do it , she'll be minus £5k in business & she won't have to pay any tax on profits till she reaches zero again.

Visit businesslink's website there is so much info on there you would not believe.

Yes she's need therapists insurance & public liability. Try Salon Gold, ABT, The Guild for starters.

Call your mortgage & home insurance companies. It cost me nothing extra but not telling them would've been their ticket out of helping me if I had made a claim.

You do need music licenses to play music but it's complicated, and there are two types I think at £80 per annum each, roughly. Search on here & you'll find your answers.

Regarding building up clients - it takes time but it's definitely a market for customers to visit an exclusive beauty room. Get a couple of thousand leaflets done up for less than £100 & plaster the neighbourhood. Get a free website from weebly/Yola & read Lynne's thread on 'More ways to promote your business' & you'll be away!

Simples! Good luck xx

 

[Carlalouise]

Regarding the music license, I did some homework on this, she wont have to get one if she only plays massage, spa music.

Good luck with it all

 

[MariposaKelly]

I am in the same predicament! We recently moved house and now have two garages. The back garage is separate to the house, has electricity, windows and side entrance door.

I really want to convert it into a home salon but have no idea where to start! Council? Mortgage provider? Builder? Bank? Insurance? Its all so confusing! I have no idea on what (if anything) i could claim against in set up costs.

Hubby has allowed me to take over our dining room as a beauty room for now (im actually mobile, so i only use it for the few who prefer to come to me at the moment) but my big dream is an actual separate salon from home and not just a room in my house

Wish i had a better idea of what i could do so i will be keeping an eye on this thread

 

[Beansy]

The cost of improving or altering premises isn't an allowable business expense. You can only include repairs/maintenance and renewals of small pieces of equipment.

It would be advisable to talk to an accountant re. Potential impact of tax liabilities although your daughter wouldn't need to employ one to do her accounts, unless she wants to. The accounts (as a sole trader) are very straightforward and there's plenty of help out there for small/new businesses.

Depending on her age, she should get in touch with the Princes Trust who can help her write a business plan. Maybe seen as a bit boring but it will help her understand what she needs to do, include, pricing models, liabilities etc

Also advisable (maybe for you both?) are the free HMRC courses which will answer some of your questions you've posted (including what is/isn't allowable expense).

Your profile doesn't say where you are (Neverland, really?) but there are courses all over the country. This is the link;
http://www.hmrc.gov.uk/bst/

Guide to allowable expenses;
http://www.hmrc.gov.uk/factsheets/expenses-allowances.pdf

Finally, music licences are required unless its loyalty free music which isn't necessarily for everyone. There's only so many whale noises...

If you use the search facility on here, you'll plenty of other posts that are relevant and might give you more insight/answer specifics.


Good luck!

 

[BeauticiansDad]

Thanks everso, your are clever! I really appreciate all the time and trouble taken to respond to my post.

I hope we can get this sorted; she has spent an awful lot of time working for peanuts!

(Why the long face, Beansy?)
BsDad.:biggrin:

 

[PixieBeauty]

^^ Dad joke!! ^^

 

[Beansy]

^^ Dad joke!! ^^

Lol *rolls eyes* (avoids sarcastic reply)

 

[BeauticiansDad]

PixieBeauty, Beansy and Carlalouise,you are wonderful! You have provided loads of info and ideas for me to discuss with my daughter.

I now have much more of an idea of what she can and can't do -and what she must do!

Once again, thanks for your help.

B's Dad..

 

[Beansy]

PixieBeauty, Beansy and Carlalouise,you are wonderful! You have provided loads of info and ideas for me to discuss with my daughter.

I now have much more of an idea of what she can and can't do -and what she must do!

Once again, thanks for your help.

B's Dad..

You're welcome. Good luck