Renting out salon space

[Ash@bellefemme]

Hi ladies, just wanted some advice and opinions.
I have a busy salon along a high street, have had my salon for nearly 3 years and it has grown lovely! Only down side I have is staffing, I can’t find a therapist! I have two amazing therapist but unfortunately this year health hasn’t been on our side and has resulted every month with staff sickness. I had a baby 6months ago and had to return to work just after a month of having her, to support the salon.. it’s just become way to stressful for me.. I have had thoughts on wanting to rent salon space, so instead of a room the therapist can use all parts of the salon I.e massage room/nail desk etc.. I wanted to charge a weekly fee, this would include all overheads and stock. This way I will no longer have the stress and struggle to meet over heads and stresses of being an employer.

 

[squidgernetball]

It sounds like a good idea but your staff would become self employed and you would lose control over what they charge and when they work etc. Would they be happy for the change?
Lots to consider

Vic x

 

[Ash@bellefemme]

It sounds like a good idea but your staff would become self employed and you would lose control over what they charge and when they work etc. Would they be happy for the change?
Lots to consider

Vic x

I’ve briefly spoken with them and they are happy to go self employed of the perks of having their own business within the salon, we would all still run off the same price list and our bookings are controlled via online. There is so much to still consider.. I’m just trying to think of a way not to loose the salon as it’s a great business just unfortunately I can’t manage it anymore :-(

 

[BannerPenguin]

I’ve briefly spoken with them and they are happy to go self employed of the perks of having their own business within the salon, we would all still run off the same price list and our bookings are controlled via online. There is so much to still consider.. I’m just trying to think of a way not to loose the salon as it’s a great business just unfortunately I can’t manage it anymore :-(

This issue is, they may agree now but it could quickly change. You can't really all work from the same price list as they would all have different business names. Also, due to data protection and other issues with HMRC etc. each person would have to manage their own diaries, take their own bookings and take their own payments. It can't go through one central till or HMRC are likely to class them as still employed and enforce you to back pay their tax.

 

[AcidPerm]

I agree with @BannerPenguin.
Charging a weekly rent is a good idea and makes accounting a doddle but I think you need to go further than that to ensure your former staff are obviously running their own independent businesses within your salon. Preferably having their own printed price lists and handling their own financial transactions, for a start.

When previously employed staff suddenly become self employed in the same salon, it usually rings alarm bells with HMRC and they may well investigate further. You don’t need the added stress!

Good luck with it all.