Confused! Am I self employed or not?

[aww_suze]

Hello, this is my first time posting here so I hope I'm in the right place.
I qualified level 2 last year and got an hourly paid job in the salon I'm still at now.
However, after a couple of months the owner said they couldn't afford to pay me hourly. They said I could stay if I worked for 50/50. I take home 50% of what I make and they keep 50%. I don't pay chair hire. I use all their tools and tints/colours etc. The only thing I bring to work with me is my scissors.
Am I self employed?
It's a quiet salon and it's cheap too. They charge pensioners £5 for a cut... You can imagine how small my wage is some days I take home £20 if I'm lucky. They've now decided that they want to take 60% for doing a colour which means I only take home 40%. If I do a colour that takes 4 hours to do and they're only charging £39 on special offer days, it means I'm on £3.90 an hour? Is this right? Is it legal?
I'm so confused but don't know where to turn!
Thanks for your help xxxx

 

[Trashqueen]

You are self employed. But this means they cannot dictate your hours or your rates.

Everything sounds fishy to me. Are you registered as self employed? Because I don't doubt they are not paying taxes for you.

 

[Candystarrstarr]

Yes you are self employed, maybe suggest renting a chair instead? If not I'd personally go to another salon x

 

[daydreams01]

Have you been getting pay slips? Do they dictate your working hours? Do you get holiday pay? If yes then you are employed and prob not being paid NMW. If no to all above then you are s/e and need your own liability insurance and to pay your own NI and tax although you are prob below tax threshold.

 

[surf girl]

You also can set your own prices & working hours

 

[laurakate]

Get out of there. They are breaking the law. They took you on as an employee (and probably still treat you like one) and have changed things so that they can get away with paying you sod all.

It makes me really angry. You're being exploited. Seriously run for the hills.

 

[Trashqueen]

For sure. Plus if you are not on their books, your not insured. Assuming that you don't have your own, which I would guess not if you don't know your employment status. They sounds dodgy as hell.

 

[AcidPerm]

This might help you understand your position better.

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

 

[aww_suze]

Thank you all so much for replying. I'm not registered as self employed it's all cash in hand. However when I go to do wedding hair and make up; I get paid £10 an hour. My boss said "it's not worth me doing it if you're talking half of it!" I'm not allowed to have the 50% even though it's all my make up and tools/grips/hairspray I'm using! So does this mean I'm employed but only when it suits her? What do I do?! I have only been hairdressing a year and haven't built up enough of a client base to leave so I'm scared of the big wide world and going solo but my gut instinct tells me I'm good enough to do it. Should I ride it out a bit longer or run for the hills??

 

[Elcb]

This isn't fair what is happening. I would get out of there. They are trying to have their cake and eat it. If u don't have much of a client base then u have the opportunity to start over somewhere. When the boss said its not worth her doing it if ur taking half of it, same works the other way for u doing it and her taking half! I would get out and start over. Good luck x

 

[Trashqueen]

You really musn't carry on working like this. What if something happened with a client? You have no insurance and your boss doesn't have any either. Plus, by not being registered or employed your skipping paying tax, which could land you in trouble and affects your contributions later in life.

Honestly, if I were you, I'd try and get an employed position elsewhere, even if its part time.

 

[laurakate]

It means she's full of rubbish that can't be reasoned with and you need to get out of there.

She is actually breaking the law.

Thank you all so much for replying. I'm not registered as self employed it's all cash in hand. However when I go to do wedding hair and make up; I get paid £10 an hour. My boss said "it's not worth me doing it if you're talking half of it!" I'm not allowed to have the 50% even though it's all my make up and tools/grips/hairspray I'm using! So does this mean I'm employed but only when it suits her? What do I do?! I have only been hairdressing a year and haven't built up enough of a client base to leave so I'm scared of the big wide world and going solo but my gut instinct tells me I'm good enough to do it. Should I ride it out a bit longer or run for the hills??

 

[AcidPerm]

She needs reporting to HMRC now, for your own sake.

If you are not paying tax or submitting a tax return, when you finally get on the books, HMRC will want to know what happened during 2015/16 and they'll not have a record of your income and will start to ask awkward questions.

She will tell them it's your responsibility as you're self employed and deny any wrong doing.
Get in there first!

 

[hazelb]

think of it this way:

you are being treated as an employed person BUT she's calling you self employed.. So she doesn't have to pay you holiday pay, sick pay, pension contributions, NI contributions and your not insured.

But as you are not properly self employed you can't charge your own prices, build up your own client base or work the hours you want to.

What she is doing is illegal and whats worse is that she is treating you like sh..

So what exactly do you gain from this 'business relationship' ?

I'd vote that you should walk away. You've got experience and drive to do your job well. You could even work in an office and earn more as you look for a new position for yourself. There are business owners on here saying how hard it is to get good staff... so get looking.

 

[laurakate]

Walk to the extent that you give yourself the day off tomorrow and thereafter. If you're not making money from going into work there's no point.

I'm all for professionalism but this person's business is her problem, not yours.

 

[byKaty]

Get out of there ASAP. You are being treated like crap and taken for a ride! Good luck!

 

[Cey]

That's out of order, Report them and start being self employed [emoji173]️
Make some business cards and take your clients with you.
You can do this [emoji123] find a new salon or start mobile work x

 

[HairdressingBug]

You are self employed yes. The 60/40% is the going rate when they are providing stock thats not what concerns me. Whats worrying is that they have changed you from employed to self employed without you even realising it. Which means your not doing your books/accounts, paying tax, stamp duty etc. If they were going to do this they should have voided your contract and created a new one stating your self employed and explained all this to you properly. From what you have said your earning i would say they are taking the mick out of you. I suggest you leave this salon immediatley and find somewhere else x

 

[Makeupandbeauty]

I agree with everyone on this and in the kindest possible way, you also need to take some responsibility and research the hmrc website as they have very clear guidelines on this xx