Requirements for renting a space

[kel's25]

hi guys cant find what im looking for on the thread search.

im looking into rent a space within a hairdressers. what are the legal requirements i.e. insurance, performance rights, etc.

i dont know if i need the same stuff, like i would if it was a shop. (if that makes sense) cos id be working in a rented room, no staff

thanks guys xx

 

[loubylou]

A rented room is the same as having a shop, you are still self employed running your own business so you would still need all the insurances in place and the dreaded performing rights licence,
register with tax man,
pay business rates etc
the list is endless

 

[Claire-Bear]

A quick question for Loubylou

I rent a room from a hairdresser which includes electricity, water, use of reception staff for booking appointments. I have my own insurance and pay my own tax and national insurance - do I also need to pay business rates?

I assumed that the hairdressing business would be paying the business rates for the whole building - is this not how it works?

 

[loubylou]

If you are self employed then you are running a separate business from the hairdresser so you should be paying separate business rates, just as you pay your own tax on your treatments.
The hairdresser is paying business rates for her business not the building,
you are renting space to run your own business so it is two separate business`s within one building, so you each have to pay (sorry hun)
There are 2 business`s run from the building i work in and we each have to pay our own,
we even share a bathroom, but we don't get one bill that is shared between us, we each have to pay the full charge for water rates so the Yorkshire water are getting payed twice for one bathroom and i have looked into this in depth but we both have to pay our separate bills.

 

[Cathie!]

The Inland Revenue are coming down hard and fast in our industry, they have changed the rules about sub-contracting about 2 years ago....in the first instance it was the building trade....but now the hairdressing and beauty industry.

If you go to the same place of work on a regular basis, according to the revenue, you are employed by that particular salon/place of work.....I konw of 2 salons who have been hit by this, so salon owners beware as you will be the ones to pay a backlog of employers NI and possibly tax, even if the self employed person has done their own tax returns.

 

[Claire-Bear]

This has really shocked me regarding the business rates - I will contact my local 'small business advisors' on Tuesday to find out more. I have only been trading for a year and am only just covering my room rent, products and a small wage of approx £50 per week to now find out I may owe business rates is quite worrying:cry:

 

[number1kitty]

It depends if its included in your rent with regards to business rates.

I rented a room in a hair salon. My rent included electricity, gas, water, rates, use of phone, PR License etc etc.

When I rented a floor above a hairdressers I had to pay my own rates and PR License and i had my own phone.

It dosnt matter who pays the rates as long as they are pay for every square footage of the building being used for or as a business, same applies to Perfomance licence.

As long as its clearly contracted what your rent covers you shouldnt have a problem.

Its always best though to double check with a business advisor because if they give you the wrong advice you can sue them lol!!!

Kate

 

[Cathie!]

If you are self employed then you are running a separate business from the hairdresser so you should be paying separate business rates, just as you pay your own tax on your treatments.
The hairdresser is paying business rates for her business not the building,
you are renting space to run your own business so it is two separate business`s within one building, so you each have to pay (sorry hun)
There are 2 business`s run from the building i work in and we each have to pay our own,
we even share a bathroom, but we don't get one bill that is shared between us, we each have to pay the full charge for water rates so the Yorkshire water are getting payed twice for one bathroom and i have looked into this in depth but we both have to pay our separate bills.

Interesting point....but who is paying rent to who? And will the IR see you as being employed even if you are paying rates in someone elses shop? Someone holds the lease and that makes them the employer.

 

[number1kitty]

I went limited as I found there was far less red tape with all this. My accountant dealt with this side of the business as I rented space above a hair salon, then sub let rooms.

As long as the tax man can see see clearly that the rent paid is covering everything, and that what it isnt covering is being paid by yourself then theres no probs.

The girls I sub let too were also limited companies that paid a rent per room per day that I invoiced them for. They paid their own Tax and NI.

As I am employed by my own company I pay my tax & Ni through that.

I had my solicitor draw up contracts so all the people I sub let to on various days were made to be responsible for thier own taxes etc.

With regards to utilities, I rented 2 storeys above a ground floor shop that used to be an entire building. We shared one leccy meter. It cost me £500 to have them split so I could get builed seperatly. I only did this because the shop was turned into a restaurant and they wanted me to go 50/50 on the bill! The cheek!

I am a member of a couple of local business and networking clubs. It works out well because there are always PR companies, accountants, solicitors, bank managers, printers etc their that you can become 'friends' with! It means lots of free advice on stuff like this and often huge discounts for their services!

Kate

 

[loubylou]

Interesting point....but who is paying rent to who? And will the IR see you as being employed even if you are paying rates in someone elses shop? Someone holds the lease and that makes them the employer.

It is a large building and all rented separately by the landlord,
i have bought the business that i run but i rent the room from the landlord,
the other business in there is in a separate room and pays rent to the landlord,
we each have our own lease from the landlord.
Is this what you meant hun ?

 

[kel's25]

now im confused you have both said something different, if it pulls off ill go to the local council they will tell me surely? thank you guys x

 

[loubylou]

now im confused you have both said something different, if it pulls off ill go to the local council they will tell me surely? thank you guys x

That is your best bet hun as all councils have their own rules :hug:

 

[Cathie!]

It is a large building and all rented separately by the landlord,
i have bought the business that i run but i rent the room from the landlord,
the other business in there is in a separate room and pays rent to the landlord,
we each have our own lease from the landlord.
Is this what you meant hun ?

Thanks, that makes total sense.

 

[bella-donna]

I went limited as I found there was far less red tape with all this. My accountant dealt with this side of the business as I rented space above a hair salon, then sub let rooms.

As long as the tax man can see see clearly that the rent paid is covering everything, and that what it isnt covering is being paid by yourself then theres no probs.

The girls I sub let too were also limited companies that paid a rent per room per day that I invoiced them for. They paid their own Tax and NI.

As I am employed by my own company I pay my tax & Ni through that.

I had my solicitor draw up contracts so all the people I sub let to on various days were made to be responsible for thier own taxes etc.

With regards to utilities, I rented 2 storeys above a ground floor shop that used to be an entire building. We shared one leccy meter. It cost me £500 to have them split so I could get builed seperatly. I only did this because the shop was turned into a restaurant and they wanted me to go 50/50 on the bill! The cheek!

I am a member of a couple of local business and networking clubs. It works out well because there are always PR companies, accountants, solicitors, bank managers, printers etc their that you can become 'friends' with! It means lots of free advice on stuff like this and often huge discounts for their services!

Kate

Hi lovely, can i ask which business and networking clubs you are a member of?