Question regarding employing staff

[Beautific]

Hi all, From June I will be renting a room in a hairdressers to use for beauty. There are a few things that concern me and I would be greatful for any advice;

1) I am employing one member of staff to cover a few days a week on a self employed basis, she will get 40% of the days takings as I am paying all the rent and buying the products for her to use so who is responsible for her tax and national insurance?

2) Does she have any rights with regards to holiday pay etc with her being self employed?

3) I have already told her she will need to work at getting clients in on her days aswell as paying for her own beauty insurance, is there anything I have not covered?

 

[persianista]

It would be a good idea to clarify things with HMRC. the rules on self employed/ renters/ people claiming their staff are self employed, are changing all the time. They are the best to advise you.
A separate point is that she could negotiate a contract for herself with the salon owner if she was truly self employed. Is that a risk you are happy to take?

 

[Beautific]

Thankyou for your reply, I will give hmrc a call to find out more information as their website gives mixed answers. With regards to the other question the salon owner is someone I have known a long time, also there is only the one room there to rent and I am paying for 7 days a week so no option to get someone else in.

 

[persianista]

Thats good, as I saw the same situation turn very bad in my friend's salon. My contracts with renters forbid them from employing staff.
I don't do % splits because of the vat and tax implications. As I understand it, HMRC treats it as employer avoidance. Many others on here seem to do% splits just fine.

 

[emma m]

sorry if i have miss read the last post but does this basically mean that if someone rents a space or room within a place and work on a self employed basis they are unable to employ staff?

 

[marioned]

I think it was a clause in that contract, so best read your own to see if there is anything similar in it which would not allow you to do so. :hug:

 

[persianista]

I don't know about other salons, but it is a clause I put in my own renter contracts, having seen a bad situation in a friends salon some years ago.