Room rent-how are you paid?

[Holisticfreak]

Hi all!
I've posted once previously about a self employment opportunity where I work. After negotiating I have the opportunity of 3 days per week at £50 inc vat per day.
In my discussion with salon owner/manager I ventured I would like my own pdq machine so any treatments I do I'm paid for as soon as poss for cash flow/stock/living(!) etc.
I've been told under no circumstance will this be happening and I will or 'paid' the week after. I've not even yet had chance to discuss with her the fact she is vat registered, charge per card transaction etc
Is this normal? I don't have a clue! She told me 'your just renting the room' to which I answered 'yes, as a self employed person therefore I don't want to wait to be paid!
One of my issues is she clicks about not having money to pay wages etc and I've at times got paid later than others so I'm worried I'll be self employed, yet having the stress of chasing for my money!
Help!! Xx

 

[AcidPerm]

NO NO NO!

Remind her that in this situation she is just your landlady. Be very firm and tell her you'll handle your own client monies or it's no deal.

If she takes client payments, they'll end up being included in her overall takings for VAT purposes.

DO NOT agree, otherwise it will cause you to lose income as she will likely deduct the VAT she has to pay before reimbursing you.

 

[Beckybee]

As above, walk away or stand your ground.

If you are paying rent per day, the client pays you not the salon owner.

Perhaps she thought you wanted her to pay for a terminal?

You can take card payments in a few different ways,, we have a terminal for us, not our rent a chair staff. I am unsure if you can have several terminals on one landline? Again perhaps she thought she might have to have another line put in for you.

You can do it all via your mobile phone nowadays all quite easily.

Personally I would not want someone's taking going into my bank account, it'll take me longer to do the books, there will be mistakes where she's missed your £60 one day so that will take time to sort out.... I wouldn't want that hassel.

Think long and hard about the next move

 

[Holisticfreak]

Thanks ladies *feeling vindicated dance*!!!

She was well aware that I would be completely paying for my own portable pdq and the wifi to go with it as told her I would need this at home-she was also very shocked I planned to work from home.....she seems to forget I will be self employed! Assured her instant worry of me stealing clients-never any intention as I don't live near where I work so I can see clients who live near me (approx 15 miles from salon), as I feel I can comfortably fill 3 days at salon but would have always been willing in the future to rent a 4th day if the time came and the room was available.

I told her today (as husband checked with his accountants) that as she pays vat I want no part in that being taken from my money as I (for now) will not be vat registered, also today said does she pay business bank account charges? I want no part in that, card transactions can differ per card, different cards go into the bank at different times etc and that it will be too messy and that also for my book keeping and accounting (and cash flow) I need to be in charge of my own money.
She categorically said no, so it's no deal for me. This was my line, and I'm sticking to it. I believe there's other reasons why but who cares I guess? I don't get holiday requests approved for weeks, I don't always get paid on time so I cannot trust this.

She said today 'you are only renting the room' I said yes so I'm self employed. Think the controlling aspect of her personality will not ease up if I changed.
Thank you both very very much for easing my mind xx

 

[rachelizabeth]

I used to work "for" someone like this. I was technically self employed but she treated me like an employee. If I ever tried to stand my ground and tell her that I don't want to work etc she'd come back with a snarky comment.

Best thing I ever did was tell her exactly what I thought of her and walked out! Unfortunately you can't win with people like this. They just keep making things difficult for you and you have to decide whether it's worth it or not

 

[❤️Louise❤️]

I have 2 people that rent space from me one pa

 

[❤️Louise❤️]

Posted too soon, one pays monthly one weekly, they choose their own hours, buy their own stock and take their own payments. I book clients for them if they aren't in and they will book mine if I'm not in. But everything else is fully their own business.

 

[Holisticfreak]

Thank you all very much! It's hard when this is new and I was 99% that I was right so it's nice to have confirmation.
Lots of thinking this weekend for me, it's thrown a spanner in the works but I'll get my thinking cap on! Xx

 

[Beckybee]

As a side note.
I try to help our rent a chair/room staff. Going out of you way to make things easily for them, helps everyone, they'll stop longer and hopefully have my back when I need help.

 

[Holisticfreak]

Thanks Becky. That's what I was hoping for as it's mutually beneficial but seemingly she thinks otherwise.
All very exhausting now and too one sided, feels like I'd be self employed in just name x

 

[daydreams01]

It doesn't make sense that she wants your takings to go through her accounts as she will be taxed on them & wont be able to claim VAT back as you are purchasing your own stock! It should just be that you pay your rent either weekly or monthly. She is making it more complicated then it needs to be!

 

[Holisticfreak]

Yes she is making it more complicated, it's her to a 't'. I can't fully understand, not sure if it's to use as money to pay bills? And then pay me a couple of days after she's used my takings?
Or is it just she is still hugely controlling and can't understand that I will be self employed and she needs to let go.
I just wanted to pay rent and be left to work well, and build up my own business. Oh well!

 

[hazelb]

I don't think this will work for you, so I'd walk away if I were you.

You sound like you have a handle about what it means to be self employed, and it sounds like she doesn't have a clue!

Yes, you should pay a set rent weekly or monthly and that's it.

I wouldn't even bother with a 50 / 50 split it just complicates things if she buys crap products or lets other people use them.

What has been said is right. There is NO reason why she should take your clients money. ( That may be where the 50 / 50 split complicates things! as you would need to provide her with a list of your weekly taking )

Also they are your clients, not hers, so they can chose to see you at home instead, it may be more convenient for them.

I think she would go purple in the face if you mentioned you were changing your prices. lol!

It's actually illegal for her to take the clients money then 'pay' you later at her convenience, as then you are just an employe on a 50/50 split, (except you are paying room rent on top and not getting your tax, NI, holiday pay, sickness and pension paid for by her. - You can see why she thinks it might be a good idea! )

 

[Holisticfreak]

Hi ladies sorry I've been quiet.
Just a little update-I left my job! I finished last week and we are now in mad preparations for creating my very own beauty room at home!
Scary, exciting, exhilarating and what a relief to be out of there.

My husband says I'm like a new woman. After she told me there was no budging and she would be taking my takings, I declined self employment.
No surprise but the day after she came gunning for me with performance management. Blaming me that I wasn't getting new clients and that that I had to think of a marketing plan and reach targets over the next month. Told her I knew she was p. Managing me (my husband owns businesses!) which she denied.
I do believe she viewed me renting the room as an opportunity to cream cash off me.
Shame as if she'd have invested in courses/training for me, marketing me etc I'd have smashed it as I put 100% into each treatment for each client.
She is now trying to rent the room so I wish the person luck!
Thank you all for your advice, it really helped and I can now lurk on these pages as a business woman!!! Xxx

 

[rachelizabeth]

Hi ladies sorry I've been quiet.
Just a little update-I left my job! I finished last week and we are now in mad preparations for creating my very own beauty room at home!
Scary, exciting, exhilarating and what a relief to be out of there.

My husband says I'm like a new woman. After she told me there was no budging and she would be taking my takings, I declined self employment.
No surprise but the day after she came gunning for me with performance management. Blaming me that I wasn't getting new clients and that that I had to think of a marketing plan and reach targets over the next month. Told her I knew she was p. Managing me (my husband owns businesses!) which she denied.
I do believe she viewed me renting the room as an opportunity to cream cash off me.
Shame as if she'd have invested in courses/training for me, marketing me etc I'd have smashed it as I put 100% into each treatment for each client.
She is now trying to rent the room so I wish the person luck!
Thank you all for your advice, it really helped and I can now lurk on these pages as a business woman!!! Xxx

Aww so pleased for you hun, I did the same I left a job that was similar to your situation and started up my own business and never looked back! My passion for the industry has returned greater than ever and every day I am happy and enjoy working! Good luck with your room at home I hope it all works out well for you x

 

[hazelb]

I'm so pleased for you.

Just think for every treatment you do - you get ALL the money

That doesn't mean it's easy, and you have to do marketing, get clients, deal with stock etc. But you will have so many options on where you can take your business.

 

[Holisticfreak]

Thank you so much for the kind words of encouragement...something I've not had from work for a while. Husband, family and friends were such a support but even this first week in I can now see how much I was affected being in such an oppressive, bullying environment
This week I've been doing lots of admin, ordering and sorting. My room will need plastering which we weren't expecting but at least it'll have lovely smooth walls! It's been a pleasure to see clients and feel proper job satisfaction.
Scary but exciting and I know 100% this is my path xxx