Laurabeautician
Active Member
will the new national living wage affect your business in any way? Will you increase your prices to compensate for the rise?
I'm not vat registered yet but can see in the next 2 years having to do it. What is the current threshold, is it £72000? Every time I feel like I'm getting closer to making a decent living doing this then something else crops up and I need to work even harder to cover my costs! I have had a girl come today to enquire about work, I really need someone more as an assistant on a casual basis but she has just qualified at level 3 and desperate to get some salon experience, seems lovely so would be good in that I can give her blowdrys or cuts when we are too busy to do them ourselves. The only drawback is she is 26 which means I need to pay her more and I'm only just paying myself! It's catch 22, was really looking for someone younger as it's more affordable but would like to give her a chance!I wish they would raise the vat threshold. That would make a massive difference to small business's. Struggling to pay current nmw so not quite sure how we'll cope with a pay rise as well as a pension plan for any staff members!
Vic x
How can basic rate be £200? If nmw is £250 for the hours worked?Am i right in thinking that the NMW can include commission earnt? For example lets say that a weekly wage on NMW would amount to £250 for the hours worked then that £250 could be made up of a basic rate of say £200 plus a commission of £50 but if they hadn't had a good week and not hit the commission target you would still have to pay them the £250. I'm thinking of incorporating like that, a basic plus commission or Flat NMW whichever works out best for the employee.
Glad you found someone! You seem so helpful on here they will gain a lot from working for you! XWe've just employed the first member of staff that I didn't give birth to. She's employed 2 days per week. I opened her 2 days up on Tuesday and she's been really busy today and is pretty much fully booked tomorrow. I don't know how long it'll last but so far so good x
Was just using that as an example but I'm sure that the wage can be made up of a flat rate plus a commission and the employee gets whatever is the greater amount, so if she has a good week or month then it would amount to more than NMW but if it's been quiet, the NMW gets paid.How can basic rate be £200? If nmw is £250 for the hours worked?
Thank you that's a lovely thing to say xGlad you found someone! You seem so helpful on here they will gain a lot from working for you! X
It's only the truth xThank you that's a lovely thing to say x
Thanks, Just trying to figure out the best way to do things. My stylist currently gets NMW and commission which probably makes it fairly close to the new rates being put in place. I might consider just scrapping the commission altogether but do think it acts as an incentive to work harder. Lots to consider!Just for information as well. I have to give my accountant wages broken down into hourly rate and amount of hours plus commission as a separate amount. You may be able to use commission a part of the salary to make it up to nmw but I personally don't think that's ethical. Having said that, nearly every salon I know classes the staff as self employed but they have to stay all day and only take a percentage on what they do. One lady said she had to be in from 9 to 5 for the percentage on an eyebrow tidy as that was her only client all day. Totally illegal!
The reduction in Corporation tax is only 2%. Minimum wage to £9ph is just under 40%
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