Opening up myself help needed

[Thompson1]

Hi guys

Some of you might have read the problems I was having in the salon I worked for.

I have previously owned my own franchise salons but the paperwork and finance and tax etc was all taking care for me and had nothing to do with it.

I have been offered my own salon to rent off a women who is in her 60's and is looking to retire.

I have never done this before and have always had things sorted for me and handed on a plate. I was wondering if I took on the salon I would need to rebuild my clientell and wondered if anyone has done this before as I am worried if I do this i wont be able to afford my house hold bills etc as some weeks i might have nothing when i start as its a brand new area. Can you claim any benifits when you start up to ensure your gaurenteed a min take home pay when you first start?

 

[crazysaz]

only thing you might be able to get would be child and working tax credits. starting a business isnt easy

 

[leonnib]

if your renting you can ger housing benefit and council tax also even if your self employed.. going by how much you earn.

 

[jotommo]

doubt it really............. everyone would be doing it wouldn't they??
if your renting off someone that is retiring where is the exsisting custom????
would she not do you a deal on reduced rent til you get on your feet??
i hada salon for 4 years and it took me 2 to build it up.. resulting in not much money at all for 2 years...
my advice is do most of the work yourself as much as you can... and maybe rent chairs/room out to bring money in by stylists/therapists that have clientelle already
good luck x

 

[persianista]

I dont think you're gonna be entitled to benefits as you are a business owner. I wouldn't expect any help if I had a bad year!
If you are taking over a salon, there should be clientelle there already, which will tide you over.

 

[Blue Rose]

It may be worth having a look at this website: Start Calculation just to double check. If you're on a low income and/or have children it's surprising about what & how much you may be entitled to.

 

[persianista]

Do persian furbabies count???

 

[lelaah]

are u currently self employed? u can trade for 3 months before notifying them so see if its a viable business.. so you could claim benefits during this time?

 

[Thompson1]

Hi

Im currently unemployed at min, what do you mean by claiming benefits for 3 mths and working?

 

[lelaah]

if your not working at the minute... you can claim any thing your entitled to... and then u can run the salon for 3 months before notifying inland revenue that your self employed.

then you can notify tax credits, etc and say your self emplyed now. they will ask ur income but you may still be entitled to benefits if your not earning alot.

when i first started my other business, i wasnt working due to having a family, then started it... after the 3 months i notified inland revenue. i then told the tax credits and job centre that im self employed but earning .£*** a week now and they just adjusted my tax credits etc.

as my business grows and i earn more the benefits reduce.

But will depend if you have dependants, children etc to what you can claim.

 

[leonnib]

if your self employed you get help with your council tax and rent not mortage..
depends on how much your earning. you tell them how much you will approx make for the first year and its allowed to be £0 for the first year. but you will need to show account etc after the year. so if you are earning loads it best to tell them so you dont pay much back.
im entiteld to help with my rent etc even though im self employed now it aint alot but it helps.

you can get child tax credits and working tax credit etc same as if your working as mentioned and it will go down the more you earn.

 

[lelaah]

this may help Registering as self-employed | Business Link

 

[jes]

if your not working at the minute... you can claim any thing your entitled to... and then u can run the salon for 3 months before notifying inland revenue that your self employed.

then you can notify tax credits, etc and say your self emplyed now. they will ask ur income but you may still be entitled to benefits if your not earning alot.

Erm... I don't think this is legal . You can't claim to be self employed three months after being self employed! You are self employed from the very first day you start in business, but you have three months to notify HMRC of this date