Holiday when self employed?

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Oldtimer

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I'm planning on taking someone on but would prefer to pay them as self employed and let them deal with the tax etc. So, my question is what would someone be entitled to when employed on that basis?
 
I would recommend taking a look at the checklists on the HMRC website regarding whether someone is an employee or is self-employed. You cannot just decide their status, a number of factors will determine the question and then you can work out what their rights will be once you know whether they would be classed as an employee or self employed.

A genuinely self employed person is not entitled to paid holidays.
 
If you pay them they are employed. They don't take an hourly wage. Are not entitled to holiday pay or sickness pay from the salon.
They would pay you a rent, and you mutually agree on a price for services (receptionist, phone, products if supplied etc...) but everything they make is theirs, you have no entitlement to it other than the pre agreed rent and or rates xoxo
 
Self employed staff can choose their own hours, take as many sick days and holidays as they like or never go sick or have a holiday!

They have to collect their own money from clients and then pay you the agreed rent.

It's a lot to consider taking on a self employed therapists.

I don't think you can even insist in a uniform!

But it works for lots of people.

X
 
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Staff can choose their own hours, take as many sick days and holidays as they like or never go sick or have a holiday!

They have to collect their own money from clients and then pay you the agreed rent.

It's a lot to consider taking on a self employed therapists.

I don't think you can even insist in a uniform!

But it works for lots of people.

X

Nope no uniform.
I'm in a salon where we are all self employed and the owner comes in to collect rent and has her weekly blowdry (but she does reimburse us for the tea coffee chocolate ad milk we buy in return).
As a group we agreed on price's and have just one price list for us all, we also agreed on a black simple uniform and had matching name badges made. We want the clients to see us as a salon and a brand although we do run our own promotions as well as work together to do a promotion that benefits all of us.

You've also got to consider that as a owner you have no say on the hours worked or days, uniform, price's, products used and or sold, promotions or style of promotions. And they must have a key and security codes if there is an alarm fitted.
It works for us and our salon. Xoxo
 
I'm planning on taking someone on but would prefer to pay them as self employed and let them deal with the tax etc. So, my question is what would someone be entitled to when employed on that basis?

You do not pay someone who is Self employed, they rent a space from you and pay you this sum each week/per day, depending on your contact. Regardless of holidays/sick etc.

They are not entitled as such to anything, unless otherwise stated in your contract.

You can not just decide to pay (employ) someone but give them the self employed title.

Self employed decide their own hours, uniform, treatments etc. Alls you have control over is how much they pay you.

If they want to take a weeks holiday (or sick), or a month they can do, as long as their rent is paid to you.

They then control their own accounts and taxes.

Good luck :) xx
 
Forgive me if I'm wrong, but when paying self employed staff you still have to pay their tax for them, before you pay them, unless they pay you. Eg you pay them 70% of their weekly earnings on Friday - you will have to take the tax off first then you pay the HMRC. ( like I said i may be wrong as I pay self employed staff in the construction industry so it may be different )

So if that is the only reason you do not want to take in employed staff I wouldn't bother!

If I were you I would employe a member of staff , even on a temp basis, as you will have much more control over them - like others have said self employed can do what they want ! Have a look a HMRCS guide to self employed, I was surprised when I first took people on s/e the rulesvare very strict , they have to supply all of their own equipment, can choose if and when they want to work etc! Even if you class someone as self employed but the HMRC deem them employed your liable to a slap on the wrists and a fine.

Personally I would employe with a basic wages plus commission x
 
Forgive me if I'm wrong, but when paying self employed staff you still have to pay their tax for them, before you pay them, unless they pay you. Eg you pay them 70% of their weekly earnings on Friday - you will have to take the tax off first then you pay the HMRC. ( like I said i may be wrong as I pay self employed staff in the construction industry so it may be different )

So if that is the only reason you do not want to take in employed staff I wouldn't bother!

If I were you I would employe a member of staff , even on a temp basis, as you will have much more control over them - like others have said self employed can do what they want ! Have a look a HMRCS guide to self employed, I was surprised when I first took people on s/e the rulesvare very strict , they have to supply all of their own equipment, can choose if and when they want to work etc! Even if you class someone as self employed but the HMRC deem them employed your liable to a slap on the wrists and a fine.

Personally I would employe with a basic wages plus commission x

As far as I'm aware you are not to take any of the self employed persons money other than tent/ rates. The client pays the person not the salon. Then the person pays the salon. If you are taking their money then its not self employed xoxo
 
As far as I'm aware you are not to take any of the self employed persons money other than tent/ rates. The client pays the person not the salon. Then the person pays the salon. If you are taking their money then its not self employed xoxo

I wasn't totally sure , as I guess it would depend on how you pay them, if they paid rent then it wouldn't matter but if they worked on % commission and the salon paid them it may be different. I'm only going on what I ave learnt recently, as I pay wages for construction so each industry may be slightly diff, but recently ( to stop the naughty people avoiding paying tax
Lol) when I pay a self emplyee I have to take the tax out first ( ie it a labourer earns 400 for a job that week i have to take 20%, tell the tax man their ref number and pay te tax direct for them)

My main point is that a lot of people assume they can label someone as self employed coz it suits them, but in theory the person is employed which leads to getting a telling off by Hmrc, and sadly they don't take ignorance as an excuse - but there is loads of info available - either that or get an accountant lol! :D
 

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