Paying self employed techs

[PamperedPinkies]

Hey all,

I intend on supplying all products and uniform when I open my salon ... What's the going split 50/50 or 60/40??

 

[xXjazXx]

Somebody may have to correct me on this, but as a self employed tech they are responsible for taking money and then pay you the percentage, rather than the salon taking the money and paying the tech.

If you're supplying products I would say to do a 60/40 split, with you taking the higher percentage.

 

[pure]

Somebody may have to correct me on this, but as a self employed tech they are responsible for taking money and then pay you the percentage, rather than the salon taking the money and paying the tech.

This is correct and I believe HMRC are quite strict about this point.

 

[claire@evolve]

Oo I'm self emp in a salon and we do 50/50 split but salon takes money and provides products/equipment not sure if this is right or wrong but we've always done this and we are all happy

 

[BannerPenguin]

Oo I'm self emp in a salon and we do 50/50 split but salon takes money and provides products/equipment not sure if this is right or wrong but we've always done this and we are all happy

This is wrong and although everyones happy it doesn't necessarily effect you but if the salon get audited they will be slapped by HMRC with a massive fine and backdated tax.

 

[AcidPerm]

You might find this helpful.

link to HMRC guidelines

http://www.hmrc.gov.uk/manuals/vtaxpermanual/VTAXPER69100.htm

 

[AcidPerm]

You also need to ensure you have suitable (legally enforceable) contracts in place covering both the salon owner and the self employed person renting the space/desk/chair.

 

[PamperedPinkies]

Thanks all xxx

 

[claire@evolve]

Thanks penguin banner - I'm worried now - we do have a contract but I only pay tax on my % - Iv always thought I should be declaring the whole amount and paying back but it's always been done this way so Iv never challenged and my accountant has never said different ? Will I get into trouble ?

 

[BannerPenguin]

Thanks penguin banner - I'm worried now - we do have a contract but I only pay tax on my % - Iv always thought I should be declaring the whole amount and paying back but it's always been done this way so Iv never challenged and my accountant has never said different ? Will I get into trouble ?

By no means have I got any law degree but from what I understand it's not necessarily the end of the world for you but more so for the salon. If HMRC come in they will say you are not all self employed but employees as the salons taking all the money and therefore it causes lots of complications that way. Hopefully someone more knowledgable can help further.

 

[claire@evolve]

Thank you so much for your advice xxx

 

[PamperedPinkies]

That info from HMRC is really useful. I didn't realise it should be like that too but I suppose it make sense if you think the self emp person is basically renting from you at that percentage. We wouldn't give our wages to our mortgage company and let them give us back the bit they didn't need lol