70/30 split?

Nic72

New Member
#1
Has anyone ever heard of this being offered as a self employed split in a beauty salon? 70 being in favour of the salon owner ...
 

Haircutz

Super Moderator
Staff member
#2
I wouldn’t accept working for 30% as you could end up earning less than someone on minimum wage. The common split is 50/50 or 60/40 with the larger amount going to the person supplying the products and other sundry items.

However, there’s nothing to prevent a salon owner asking for 90/10 if they want to, but it’s up to the self employed person to negotiate the best deal they can get.

May I also point out that if someone wants to work on a self employed basis and struggles to negotiate a reasonable percentage split with the salon owner, then they need to look for a new salon and also seriously consider if working on a self employed basis is right for them?
When working for yourself, you need to be confident and willing to deal with any conflict that arises. There will always be tricky salon owners and clients who will try to knock you down.
 

Nic72

New Member
#3
Thanks. IMO this is an unreasonable split in favour of the salon owner and have only ever worked 50/50 or 60/40. I was asking as this had been brought up to me by a friend on the basis the salon owner was saying as she would be liable for VAT this is why the split was 70 in her favour. Had never heard of this before so just wanted to know if this was something or the salon owner trying to take advantage of inexperience Thanks
 

salonfrog

Active Member
#4
One of our Salon Clients splits 2/3 vs 1/3 in the salons favour. However it’s a high income salon and the renters are ok with this.
Most of our other Salon Clients split 50/50 or 60/40 though.
 

Nic72

New Member
#5
The reason she’s being told it would be this split is because the salon owner would be liable for the vat ?
 

salonfrog

Active Member
#6
Yes, if the salon is VAT registered, it has to charge the self employed person VAT on top of the rental (commission) fee. So if the split is 60% for the salon, it charges the self employed person the 60% plus VAT.
 

Nic72

New Member
#7
Ok thanks. Good to know
 

Haircutz

Super Moderator
Staff member
#8
Alternatively, if I was the self employed person, I’d be negotiating hard for a set weekly rent (with the vat included) so that I could manage my outgoings more easily.

The 60/40 split plus adding VAT costs is going to be a pain to keep track of.
 
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