% on room rental, would HMRC agree

[mac72]

Hi,
Would it be legal to rent my room on these basis?
I pay all costs- electricity, water, products, equipment advertising, card machine etc.
In return beauty therapists pays me a % 40/60 in my favour, any takings over £1000 they get 60%. They choose their hours, deal with all bookings, pay their own tax etc. I set price list, set rules regarding behaviour and dress code. Thanks for your help

 

[Nails<3]

The self employed person is legally entitled to choose hours, price lists and dress code.

You will be their landlord as such so have no say on prices etc. You can try and come to an agreement over prices and dress code but the self employed person doesn't have to agree with you.

Sent from my GT-I9505 using SalonGeek mobile app

 

[ADiva1]

I have been renting a beauty room for over 2 years from a hair salon.
I pay a monthly rent which includes all amenities; also tea, coffee etc.
The room is my responsibility with regard to cleanliness etc. I have an accountant who does my tax returns on an annual basis.
I have my own clientele, and some from the hair salon.

There is absolutely no say about my dress code (well not face to face), price lists etc. My business is within the hair salon, but completely separate, which is what I prefer.

In answer to your question, as a Beauty Therapist, I would personally feel as if I am your employee if you wanted to have a say in my dress code and also you wanting to be included in other unrelated matters other than the rent and showing respect to your hair salon and clients.

 

[Steph86]

The pricelists, payments (ie take their own) uniform, choice if products are all perks of being SE.

You are actually doing quite alot for the extra 20%. You could take a step back & offer 60/40 in the therapists favour but do nothing but allow them to use the space. That is how you should view anyone Self employed as a tenant, not an employee. Don't provide extras, take payments etc it starts to blur the lines of employment.

A set rent per week maybe a better idea, then if they are off sick/on holiday you get paid regardless.

You could start off on a % split whilst they build up clients for a set time period then go for x per week. If you had someone in mind who cant yet afford a set rent pw.

Xx

 

[mac72]

Thanks for the advice.
Steph86 you're right I'm making it more difficult than it needs to be. I work full time as an electrologist, and have premises located in a great position, husband is in the process of putting up a stud wall creating a new self contained room. I guess it's much easier leasing out the room as long as I get right therapist. I would still like to have clinic rules -: cleaning, no smoking , professionalism towards clientele, would hate to seeing clients waiting a long time etc. as it may reflect badly on my business.

 

[Steph86]

Thanks for the advice.
Steph86 you're right I'm making it more difficult than it needs to be. I work full time as an electrologist, and have premises located in a great position, husband is in the process of putting up a stud wall creating a new self contained room. I guess it's much easier leasing out the room as long as I get right therapist. I would still like to have clinic rules -: cleaning, no smoking , professionalism towards clientele, would hate to seeing clients waiting a long time etc. as it may reflect badly on my business.

Yes definitely and a good therapist (even though SE) should not want her clients unduly waiting etc. I guess you can choose if you lease to a smoker or not. & it should be something that compliments your business. What you are looking for in a tenant isn't unrealistic.

Although sometimes not everyone has the same work ethic, which is why a set rent weekly rent could work in your favour. Xx