Card payment/self employed help

[mrslamps]

Ladies who rent a space, i am opening a salon and I have a hairdresser starting and obv all clients pay her, however the card machine will be registered to the salon and attached to my bank so is this going to create a problem when I come to do my books and with HMRC.
Thanks X

 

[Misty Eyebrow Artist Crew]

Is she going to be self employed? If so there's a few card machines that link to your own personal bank account, I use Payleven in my salon, I don't take too many card payments as there's a few banks right next to me but it works through my phone and they just take a small percentage per transaction x

 

[x Fee x]

If the person is renting from you, as in self employed, then she needs to have her own method of taking card payments if she chooses so x

 

[PamieD]

It won't cause a problem but you'll have to charge her enough for the fees too otherwise you'll be out of pocket. Probably easier if she does her own payments.

 

[x Fee x]

It won't cause a problem but you'll have to charge her enough for the fees too otherwise you'll be out of pocket. Probably easier if she does her own payments.

But it does cause a problem, because the salon books will show them as having more takings than they actually do, with no way to account for those treatments.
This is especially a problem if it raises the salon takings above the VAT threshold and they aren't VAT registered.

HMRC rules clearly state there should be no blurred lines between a self employed person and the place they work in. The salon cannot take payments for a renter.

 

[PamieD]

No because the hairdresser's takings are paid back to her, so that isn't entered onto the salon books as a sale. Lots of salons do the payments for their renters. Although I think personally everyone should have their own.

 

[surf girl]

If it went through the salons card machine how is that not a sale? It would show on the accounts as a credit then going out to the renter as a debit (or whatever their called in accounting terms)

Op I'd listen to Fee she's bang on with this, it's no bother to the renter to get her own card machine I Zettle. & many others give a free card reader all you pay is a transaction fee & all the accounts will be in your control

 

[mrslamps]

But it does cause a problem, because the salon books will show them as having more takings than they actually do, with no way to account for those treatments.
This is especially a problem if it raises the salon takings above the VAT threshold and they aren't VAT registered.

HMRC rules clearly state there should be no blurred lines between a self employed person and the place they work in. The salon cannot take payments for a renter.

This is what I was initially thinking, thanks fee X

 

[PamieD]

If you get cashback from a supermarket they don't process it as a sale. And if you're taking cards on behalf of someone else then you aren't taking a sale for yourself either, you're processing it on their behalf.

 

[Hive Salon Software]

Ladies who rent a space, i am opening a salon and I have a hairdresser starting and obv all clients pay her, however the card machine will be registered to the salon and attached to my bank so is this going to create a problem when I come to do my books and with HMRC.
Thanks X

Hi if you want to keep things separate she can use Hive for all her own appointments and marketing and also use it for taking her card payments. Alternatively if you don't have a salon software package you can use hive and give her a chair in your salon and be able to monitor everything.

Regards

Kim

 

[NailsXpress]

I'm self employed and I use iZettle for my own clients card payments. No hassle. I can also use it whenever I go mobile.

 

[kinkyboots33]

Could someone tell me more about iZettle please?