Chair rental help!

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Bumblebee1234

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Hi all! I’m trying to get my head around chair rental. I’ve not a clue what to do! I seem to see a 60/40 split (60 to them 40 to me) I just don’t know what you do about colour? Do they supply their own or is this included in the 60/40 split? Or could colour clients be a 40/60 split or do you take a % on their colour clients

What happens with holidays? I just wondered if it’s a 60/40 split they can take a lot of time off and we are left out of pocket so to speak?
ANY advice is welcome!
 
Hi , yes you would provide the products on a 60/40 basis . You do need to be careful with doing 60/40 as people think this is classed as being self employed but it’s really classed as they are employed by you and HMRC look at it as it’s a way of avoiding paying holiday pay etc. I was advised by my legal team that if you do 60/40 that when people realise do realise that they are really classed as employed , they can backdate holiday entitlement etc from when they started with you . It’s such a headache doing 60/40 as I used to do it until I was told the legal side on it ( which I was told a lot of people don’t know about) Your better just renting a chair out and they can pay you regular rent and you’ve not got the hassle of more products to buy and more accounts to work out which will bring a higher accountants bill. If you do rent the chair out they need to have their own phone, card machine, appointment book and can work what hours they want . Hope this helps as know how hard it is as I’ve been through it xx
 
You do need to be careful with doing 60/40 as people think this is classed as being self employed but it’s really classed as they are employed by you and HMRC look at it as it’s a way of avoiding paying holiday pay etc.

No, that’s not true and I think you’ve misunderstood the advice.
It’s either a percentage split or a set rent. Either is a perfectly acceptable way of working self employed.
It‘s only when the salon owner tries to micro manage how the renter runs their business, that HMRC will query the arrangement.

Usually the higher percentage (60% in this case) goes to the person supplying all the products, so in most cases it’s the salon owner. If the salon owner rents several chairs, they’ll often provide all the basic styling and colour products. This is often due to simple logistics and limited storage space to allow each renter to keep a fully stocked colour bar.

https://www.salongeek.com/threads/hmrc-guidelines-for-determining-self-employment.295298/
 
If you're looking at it as the salon owner, you may need to decide what you want to gain from it, and what you're prepared to give.

An extra few hundred pounds a month is not to be sniffed at (flat fee rental), bit you could.male more with a %, but only if they have their own clients already and they dont over use stock.

Worse of all worlds is an unbusy and wasteful worker on a % split....
 
I might rent a chair out in the future but let the hairdresser manage their own stock. How much would they pay for chair rental alone?
 
As a guide, you’d charge a daily rate that’s roughly the equivalent to the cost of 1 Ladies cut/blow dry In your area.
Obviously, if you‘re providing extra services, such as laundry, a shared assistant, receptionist support etc, you’d charge a higher rate.
 
Hi I worked at a salon for 20 years, as self employed and it was 40/60 as he supplied everything. There were 8 stylists.
Now I have just opened my own and am looking into doing the same thing.
 

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