Paying a self employed beautician question

[HJHutch]

Hi

We have 3 ladies who work on s/e basis in our salon (as well as them being mobile in their own business). We take the money for treatments through the till and then 'pay' them at the end of the day or week, less our commission.

We've been paying them cash and just writing out a slip saying what we've paid them. We're now starting to pay them by BACS whenever possible. How do you pay your self employed staff please? Just wondering if we should get them to sign something or get a simple invoice from them for tax/accounting.

Thanks
H

 

[squidgernetball]

Are you vat registered?
The reason I ask is that if you are, you'll be paying vat on the money coming in, regardless if what's going out.

If you're not vat registered but near the threshold, all this money coming in will really bump it up.

It is more usual, and more accepted by HMRC, for self employed people to deal with all their own money of which they then give you your percentage each week/month keeping your involvement to a minimum. Their insurance, tax, declared income etc is then up to them to sort.

Just a few thoughts.

Vic x

Sent from my GT-I9195 using SalonGeek mobile app

 

[HJHutch]

Thanks. No, not VAT registered.

You've made me realise we're looking at it the wrong way round. Although we record the gross money received from beauty, our actual daily takings are based only on 'our' (tanning) income plus the commission we've received , not the whole amount of beauty takings so I think we're ok with HMRC. The beauticians aren't an expense of the business, their commission is an additional income. (It makes sense in my head!)

Thanks.
H

 

[cardell]

Hi. You do it exactly the same way I do. I know your kind of Ment to do it the other way (as Mentioned in other reply) but to me atm it's easier to do it this way. X