Business rates

[Queenofnails]

I started working from home July last year. I gained a new client who is a hairdresser, and after doing her nails for a few months she offered me a few hours a week working in her salon on a self employed basis, id pay her 25% of my earnings. Id still have my own Facebook Business Page etc and work under my own name and not the salon.
Anyway all was going well untill begining of the month when i decided to do a few clients at home (my clients that i had gained before working in her salon) as i couldnt fit them into the hours i was working in the salon. There are 2 other beauticians that work there so my hours are limited as there is only 1 beauty room and 1 nail desk. The owner got a bit funny at me because i was doing MY clients at home and not the salon. I explained it was because i couldnt fit them into my hours at the salon and that i was quite in my own right to do so. She offered me an extra day in the salon which i took but explained that if any of my clients couldnt make day apps then i would be doing them from home in the evening. I also said that i wouldnt do any of the clients i had gained from the salon at home out of respect.
Fast forward to today..... i had ONE client booked in who i had gained from the salon, who then messaged me privately and not the salons facebook page to cancel her appointment. I let the owner know she had cancelled and that as i had no clients booked in that i wouldnt be coming in. It also happens that my 2 year old is ill, so i decided to stay at home with her instead of taking her to babysitter.
The owner then messaged me back asking why the client had messaged me privately and not her facebook page cancelling the appointment. I replied with "i have no idea why". I screen shotted the messages and sent her them so she could see for herself.
I then got a message saying that she needs to talk to me on Monday about me working from her salon under my own name, as she cant have more than 1 business (self employed person) work from her salon as it will up her business rates and business tax, and that she needs to discuss this with me. Nothing was mentioned about this when i first started there. She was well aware that i had my own facebook business page etc. I feel like she has said this because one of the salons clients has private messaged me to cancel an app and not her facebook page.
I may add that there is also another 5 other self employed people who work there, who as far as i know hasnt been asked in to talk about business rates etc.

Can anyone please give me some advice on where i stand in all this, if my rambling has made any sense to any of you lol
I have asked the advise of a friend who owns her own business and as far as she is aware she thinks that i dont have to pay towards the owners business rates and tax as this is what my commision pays towards.

 

[AcidPerm]

You are an independent business owner operating in her salon. She is simply your landlady, nothing more.
You are entitled to choose when you go into work and it’s reasonable to let her know if you are not coming in on a specific day but you do not owe her any explanation. She’s not entitled to police the way you run your business.
Any tax implications for her salon business are entirely her responsibility and absolutely nothing to do with you.

More importantly, any clients that you service via the salon are your clients and absolutely nothing to do with the salon owner so you were actually in breach of data protection laws by showing the owner the texts. Do not do this again!
She isn’t entitled to know anything about your clients, even if they are also clients of the hairdressing salon.

 

[Traveller75]

Business rates are calculated on the rateable value of the property and a multiplier. Business taxes are calculated on profits. So her rates could go up because she's making a bigger profit but, as far as I'm aware it has nothing to do with how many self employed people you have.

 

[Queenofnails]

You are an independent business owner operating in her salon. She is simply your landlady, nothing more.
You are entitled to choose when you go into work and it’s reasonable to let her know if you are not coming in on a specific day but you do not owe her any explanation. She’s not entitled to police the way you run your business.
Any tax implications for her salon business are entirely her responsibility and absolutely nothing to do with you.

More importantly, any clients that you service via the salon are your clients and absolutely nothing to do with the salon owner so you were actually in breach of data protection laws by showing the owner the texts. Do not do this again!
She isn’t entitled to know anything about your clients, even if they are also clients of the hairdressing salon.

Thank you for your reply. I now know i shouldnt have shown the messages, i just wanted to show her she had cancelled, as just lately there has been a bit of a funny atmosphere at the salon since i said i was going to work from home if i couldnt fit my clients in the hours i work at the salon. Also this is all new to me amd wanted to be armed with the correct info before our "talk" on Monday about her business rates. Personally i think she is trying to find an excuse to get me to leave. I dont think she likes it because ive decided to do some clients at home and that i will "steal" the salons clients, which i would never do. Thank you for your infomation

 

[Queenofnails]

Business rates are calculated on the rateable value of the property and a multiplier. Business taxes are calculated on profits. So her rates could go up because she's making a bigger profit but, as far as I'm aware it has nothing to do with how many self employed people you have.

Thats good to hear. She has put it across to me that because im working from her salon as self employed, that im technically running a 2nd business from her Salon and that it isnt allowed. Im all new to this so im not sure on whats what. Thank you for your help

 

[Traveller75]

You can run as many businesses as you like, it's irrelevant to her and what you do in her salon. You could be self employed as a nail technician by day and self employed as a plumber by night, it's really none of her business!

 

[AcidPerm]

https://www.salongeek.com/threads/hmrc-guidelines-for-determining-self-employment.295298/

Read this and perhaps print off a copy to take to the salon with you.

 

[Alison Pilkington-Child]

Yep, business rates are based on the premises, the tax she pays is based on her gross income. She is fobbing you off. Sounds overall like you don't need her anyway.

 

[Maria1705]

Thats good to hear. She has put it across to me that because im working from her salon as self employed, that im technically running a 2nd business from her Salon and that it isnt allowed. Im all new to this so im not sure on whats what. Thank you for your help

I worked on business rates for over 20 years, it is based on a rateable value which is then multiplied by a rate in the pound. The rateable value is determined by various factors, size, useage of property, potential footfall in area, & how much rental value it could demand. It has absolutely nothing to do with how many staff work there or how much profit she makes.

 

[jamiereid92]

What she is doing is completely wrong she is trying to treat you like an employee without paying you.

However, if you're getting lots of new clients from the salon and you're only paying 25% you have an amazing deal!

Those new clients that get given to you are yours, stay there for a while, get their details and take them with you!