50/50 commission & VAT

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This isn't quite right Lynn.

The law states that when calculating holiday pay for somebody whose wages varied due to commission etc. you must work out the average pay based over the previous 13 weeks and pay them that figure. Only paying minimum wage whilst on holiday would be illegal.

Aw I knew they would have to get at least minimum wage :-D

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Having read through this post in confused....
I'm SE part time nail tech I'm working in a vat reg salon and the owner is saying all my earnings have to go through the salon till is this correct ? Why would they be saying this ? I want to take my own money then pay my rent plus vat on it at the end of the month but this is becoming a huge issue as there accountant is saying that I would be avoiding paying t
ax which scares me! :suprised:
 
I agree with many of you on this subject however just wanted to share my experience with things. I worked in the barber industry for a couple of years and my dad has worked for several delivery couriers in his time.

Working as a barber some hire a chair and everything as per norm and take there money but everyone has to chair the same obviously. Some others you just get paid per head you cut and you pay your own bits and bobs.

My dad has worked for several courier firms and some of which have uniforms, set hours and what not. A lot of DHL and Parcelforce staff are all self employed. Bet you wouldn't think that when seem them at your door in full uniform.

I am not saying it's right by far but just thought it's an interesting topic when big companies get away with it.
 
Having read through this post in confused....
I'm SE part time nail tech I'm working in a vat reg salon and the owner is saying all my earnings have to go through the salon till is this correct ? Why would they be saying this ? I want to take my own money then pay my rent plus vat on it at the end of the month but this is becoming a huge issue as there accountant is saying that I would be avoiding paying t
ax which scares me! :suprised:

They have no right to take the the money and put it through the till. As a SE person you have the control. You have the clients, hours etc that you want and take your own money and then pay your Landlord when you have too.

Its not you that will have to pay VAT, that is the salon owners role unless you are earning more than 79k (dont quote me on that figure) and registered to pay VAT.

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Having read through this post in confused....
I'm SE part time nail tech I'm working in a vat reg salon and the owner is saying all my earnings have to go through the salon till is this correct ? Why would they be saying this ? I want to take my own money then pay my rent plus vat on it at the end of the month but this is becoming a huge issue as there accountant is saying that I would be avoiding paying t
ax which scares me! :suprised:
You take your money, you pay your bills with that money and you do your self employed return and pay any tax & VAT that is due (you prob won't have enough profit to be paying VAT or taxes in the first year or two as self employed).

Self employed MUST take their own money from THEIR clients (you should have client record cards with all client info in your possession as they are your clients) and the prices you charge are up to you not them. It is your choice if you want to do an offer or not, it is your choice what days & hours you work, it is your choice if you wear a uniform or not and it is your choice if you take holidays etc.. (you do have to pay rent even when your not there but it is your choice to be there or not).
 
I agree with many of you on this subject however just wanted to share my experience with things. I worked in the barber industry for a couple of years and my dad has worked for several delivery couriers in his time.

Working as a barber some hire a chair and everything as per norm and take there money but everyone has to chair the same obviously. Some others you just get paid per head you cut and you pay your own bits and bobs.

My dad has worked for several courier firms and some of which have uniforms, set hours and what not. A lot of DHL and Parcelforce staff are all self employed. Bet you wouldn't think that when seem them at your door in full uniform.

I am not saying it's right by far but just thought it's an interesting topic when big companies get away with it.

Think they are sub contract which is different to self employed :-D

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Think they are sub contract which is different to self employed :-D

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I normally would totally agree but the contract clearly says self employed ;)
Interesting though.
 
You take your money, you pay your bills with that money and you do your self employed return and pay any tax & VAT that is due (you prob won't have enough profit to be paying VAT or taxes in the first year or two as self employed).

Self employed MUST take their own money from THEIR clients (you should have client record cards with all client info in your possession as they are your clients) and the prices you charge are up to you not them. It is your choice if you want to do an offer or not, it is your choice what days & hours you work, it is your choice if you wear a uniform or not and it is your choice if you take holidays etc.. (you do have to pay rent even when your not there but it is your choice to be there or not).

How does this work then if commission was 60/40, salon owner provides all material and the higher amount goes to salon owner ? How can they dictate price and offers?
 
How does this work then if commission was 60/40, salon owner provides all material and the higher amount goes to salon owner ? How can they dictate price and offers?
They can't dictate prices and offers.

The same as a self employed therapist paying a set rent you take the money from all your clients and you pay them what you owe (this can be paid daily, weekly or monthly depending on how often you agreed to pay them).

It is your business under their roof, you set the prices, you choose when & IF you do offers, you take money from the clients and you pay the landlord their share (so 60% if that is the agreed amount), you work when you want, you take holidays when you want - although seeing as you don't pay rent when your not there it would be good to clear it with the landlord or offer to have a set rent if your planning a lot of days off or a long holiday.
 
I normally would totally agree but the contract clearly says self employed ;)
Interesting though.

Yes might be one to run pasr the hmrc :-D

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out of interest has anyone ever paid over 50/50 .45/55....40/60 ..with the higher amount going to the SE ..sadly with the way employment is going within the hairdressing industry it would seem in some areas SE can call the shots.
 
out of interest has anyone ever paid over 50/50 .45/55....40/60 ..with the higher amount going to the SE ..sadly with the way employment is going within the hairdressing industry it would seem in some areas SE can call the shots.
60/40 is 'the norm' with the majority going to whoever supplies the products.
 
I know , 60/40 is the normal .. but has anyone heard of it going the other way . 40/60 .. or may be 40/60 when over a threshold maybe when over 6500 p/m .. or even everything over 6500 -- 75%.. I know this seem high , last year i had an advert up for over a year. and got two apply one non speaking English the other someone wanting 150 a day with no clients . so i guess to make it look more interesting to local already busy stylists you have to up the bar..also the salary and com package i already offer is NLW + good commission.
 
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I know , 60/40 is the normal .. but has anyone heard of it going the other way . 40/60 .. or may be 40/60 when over a threshold maybe when over 6500 p/m .. or even everything over 6500 -- 75%.. I know this seem high , last year i had an advert up for over a year. and got two apply one non speaking English the other someone wanting 150 a day with no clients . so i guess to make it look more interesting to local already busy stylists you have to up the bar..also the salary and com package i already offer is NLW + good commission.

Yep.....it's not just the clients having 'unrealistic expectation.....'
If they take £300 a day....they expect to be earning £200 at least!:p
It's sooo hard to turn a profit nowdays.

Don't get me wrong....someone offering to bring with them a clientele, has reason to negotiate a higher salary.... but in my experience, they come along, call the shot's, bring little to the table, but still expect the full package!!:rolleyes:
 

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