Advice needed for self employed staff pay!

[Beautypro123]

Hello all!

This is my first post so I'm not sure if I'm posting in the right place etc it's all a bit confusing!

I need some professional advice please if anyone can help.

I'm a self employed beauty therapist based within a health club, and I have a long standing client base. I will soon be taking leave for maternity and will be looking for a therapist who is self employed to cover my clients while I am away. There is also great opportunity for them to gain new clients and continue working even when I come back.

My question is how do I decide or know what to pay? I have decided a percentage of earnings is the best way forward but what percentage I'm unsure of. I will provide all equipment and products as it's already there and set up so I have to cover those costs.

In my mind I was thing a 60/40 with the higher percentage to me, any advice would be greatly appreciated!

 

[AcidPerm]

Unfortunately, it's a lot more difficult taking maternity leave when you're self employed.

Just beware that if they're self employed (set rent or percentage split), the clients they service will 'belong' to them so that if they leave they can take the client details with them and effectively poach them from you.

When you return to work, how will you allocate the clients between you? For instance, if you normally had 10 clients a day, will you and she be happy taking 5 each and a fifty percent pay cut or would you expect them to only see you as they were your clients originally?

How long are you planning to take off for your maternity leave?

 

[Beautypro123]

Thank you for your reply, I will have a contract drawn up that states they are only covering my existing clients for my maternity period and that when I return these clients will come back to me. They will also not Be allowed to take any record card information. New clients that they gain during that period are theres and they can continue treating them when I return.

I just don't know what percentage to pay?!

 

[pinknsparkly]

I don't think you can have someone self employed from what you describe, why not look at paying a wage?

 

[AcidPerm]

Sorry, but I don't think your contract will be enforceable.

See HMRC guidelines as they pertain to Hairdressing...

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

This sub-section is especially relevant

3. Clients
The clients should be in direct contract with the Contractor and be fully aware of this fact.....The details, records, and addresses of clients who receive attention from the Contractor to be the property of the Contractor.
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Depending on how much time you want to take off, it might be worth employing someone on a short term contract? Have a search on here for maternity related threads in case they can help you further.

I know it's tough being self employed and a small business, but you do need to be careful when going down this route as you risk HMRC classing the arrangement as a sham and all that that entails.

 

[trixiebellewax]

If someone is self employed then they will need to keep their own record card information for their own insurance. And if they are employed then they will need access to your record cards to carry out treatments and cover you on your insurance.
I'm self employed as well and started my maternity leave a couple of weeks ago.
After lots of worrying I decided to employ someone on a fixed term contract for 6 months, at an hourly rate. Once the 6 months is up we will review hours etc and not as tied as a permanent contract.
I'm planning on taking about 8 weeks off, then going back part time and building back up.

I am going into the salon once a week to check and order stock, collect cash for banking and general checking up etc, so not completely handing everything over.

Also bear in mind that anyone can poach clients, regardless of them being employed or self employed, it's just one of those things.
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[Cottoncandy]

Thank you for your reply, I will have a contract drawn up that states they are only covering my existing clients for my maternity period and that when I return these clients will come back to me. They will also not Be allowed to take any record card information. New clients that they gain during that period are theres and they can continue treating them when I return.

I just don't know what percentage to pay?!

You can't do that. It sounds very off putting.

Plus, the clients may choose to follow the therapist. You don't have control over that. As for record cards, I would take mine with me if that was the case.

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[Steph86]

The obvious answer is, to employ someone.

You cant pick and choose aspects that suit you around the law... Ie treating someone as an employee but choosing you want them to be self employed so you aren't paying them if they aren't earning.

If you want control of any aspects of the business, you need to employ, if that doesn't suit you then its tough.

Xx