Employees and renting chairs

[Gretchin1]

Hi
How do your salons work. Do you have employees and renters in one salon or is it not a good mix is it too complicated. I'm really busy and not wanting to go vat registered so I thought It maybe a way to reduce my earnings slightly

 

[TheDuchess]

You want to avoid VAT. It’s never worth registering unless your turnover is over £140k and even then it’s very marginal for services because our costs are so low relative to our hourly rate. It’s different if you pay VAT on your rent of course.

You need to think about how you’d manage to create a business within a business. If it looks like one business to clients it probably looks like one business to HMRC and Customs and Excise and you could find yourself paying holiday pay etc to your renter as well as VAT.