Self employed rates

[stanyer21]

I have a busy small salon and thinking about allowing my therapist go self employed. I want to drop my days as I have a little one I would like to spend time with . I'm trying to work it out so it's worth my while. The therapist would be using my salon my products and obviously her working more could be taken away from my employed therapists workload. She had only been in my salon a few months so doesn't really have her own clientele the odd few maybe. How much would you say was a reasonable percentage to take to make it worth my while. Bear in mind we are a small salon I only have her and 1 part time employee

 

[hazelb]

I'm not sure how the transition from employed from self employed would work out with relation to your exiting clients.

When she is self employed, her clients are her clients ( she should keep their record cards, take their payments, do her own marketing ).

If some of your clients become hers, you will have lost them. (?) She is also at liberty to work the hours she wants to and set her own prices.

I don't know how you would manage that in a salon environment, maybe someone with experience will be along to answer shortly.

 

[AcidPerm]

60/40 is the usual split if using your products or charge her a weekly rent, say £150 a week.
It might sound a simple solution to your dilemma but it's not without a few potential pitfalls.

If she goes self employed she is no longer a member of staff but your tenant. She can choose to run 'her business' how she wants and set her own prices, use her own products etc. Any clients she does become 'her clients' and legally she has to take their payments and keep their contact details separate to your records as you are two separate business entities. If she chooses to only turn up a few days a week and see her other clients mobile or at home on the other days, you can only receive your percentage from the clients she sees in the salon. If you charge a weekly rent, she has to pay that regardless of whether she has clients or not.

If she enjoys working in your Salon, it could be a win:win situation for both of you but don't take your eye off the ball. Remember that in this type of business no-one else will work as hard for YOUR business as you might.

 

[Eloise86]

Just make sure she really is self employed or you could have a visit from the vat man

 

[stanyer21]

60/40 is the usual split if using your products or charge her a weekly rent, say £150 a week.
It might sound a simple solution to your dilemma but it's not without a few potential pitfalls.

If she goes self employed she is no longer a member of staff but your tenant. She can choose to run 'her business' how she wants and set her own prices, use her own products etc. Any clients she does become 'her clients' and legally she has to take their payments and keep their contact details separate to your records as you are two separate business entities. If she chooses to only turn up a few days a week and see her other clients mobile or at home on the other days, you can only receive your percentage from the clients she sees in the salon. If you charge a weekly rent, she has to pay that regardless of whether she has clients or not.

If she enjoys working in your Salon, it could be a win:win situation for both of you but don't take your eye off the ball. Remember that in this type of business no-one else will work as hard for YOUR business as you might.

Thanks that is what I was thinking 60 /40 she would still have a contract stating because she works under my name and salon she would have to charge my prices .

 

[stanyer21]

Just make sure she really is self employed or you could have a visit from the vat man

Wouldn't this be up to her to sort out anyway though the comeback shouldn't be on me is it :/

 

[stanyer21]

I'm not sure how the transition from employed from self employed would work out with relation to your exiting clients.

When she is self employed, her clients are her clients ( she should keep their record cards, take their payments, do her own marketing ).

If some of your clients become hers, you will have lost them. (?) She is also at liberty to work the hours she wants to and set her own prices.

I don't know how you would manage that in a salon environment, maybe someone with experience will be along to answer shortly.

I would be happy for some of my clients to move over to her as I don't have the time to fit them all in. I'm struggling with the workload at he minute. I am happy for her to work the hours she wants but I have told her she needs to charge the same prices as she is still working under my name

 

[Eloise86]

Yes it's up to her to sort everything out but she should have the freedom of a self employed persons, some places still expect you to do set hours, clean salon etc and when you're self employed that's not your job

 

[AcidPerm]

Thanks that is what I was thinking 60 /40 she would still have a contract stating because she works under my name and salon she would have to charge my prices .

Sorry, but if you try to enforce that, you'll have HMRC at your door and you risk getting a criminal record if they choose to prosecute you. If you want her to be self employed, you need to stick to the rules. See the sticky at the top of this forum for the current guidelines.

However, it sounds like you'd rather keep control so perhaps she should remain employed?

 

[Nemo]

5 of the girls that work with me are self employed. We, as a collective, decided on a salon pricing structure. We all benefit if we charge the same. Anyone can at anytime though charge what they want but because I always charged top end, they all went for the same. We too have the 60/40 split that works quite well. If one of the girls wants to bring in a new treatment, we look at competitors and we both agree on a price. I'm commercial so I can help the girls work out what the costs will be. We both have an interest in getting the pricing right. Yes, they can set their own pricing, but why not work together so we both benefit. Self employed works if you work as a team. The girls have their own clients but if they're busy, then another of the girls will do the client. Better that than 'we' lose the client. It's in all of our best interests that the salon succeeds. Everyone has keys. We have salon opening hours, but the girls can do treatments outside those hours. The girls control their own diaries. Their clients have their numbers/FB details. If a new client walks through the door, then whoever is free takes them. If we're all free, then whoever is best suited with skill does them. We do different things so a client may go to everyone in the salon. The clients also don't care who is employed or self employed. They want a consistent service regardless who they have. We have a salon phone if needed and a salon fb page and website. The girls share as the choose too. We have 'team' meeting. We have conflict too on occasion but we talk and deal with it. If they were employed, they would never earn the sums they do now. We all understand what self employed means and try very hard not to cross that very fine line. The girls do their own tax and NI and have all registered with HMRC.

The one frustrating thing with self employed is I cannot control what hours they work. There are times the salon isn't 'staffed' so I do a 12 hour day. It is what it is. I can't force anyone to come in. I also can't control what they do when they're in the salon. It's not their 'job' to busy themselves if they've got an hour in between client like an employed person would. My employed girls clean and replenish when not in treatments. They're kept busy when not busy. They have set hours and no client pressure.

There are pluses for both employed and self employed.

 

[Nemo]

I should also add that the self employed girls deal with their clients. My employed girls look to me when there is a problem to sort it out.

 

[AcidPerm]

Sounds like you have a very successful salon model which others could learn from.

 

[tinetaylor26]

5 of the girls that work with me are self employed. We, as a collective, decided on a salon pricing structure. We all benefit if we charge the same. Anyone can at anytime though charge what they want but because I always charged top end, they all went for the same. We too have the 60/40 split that works quite well. If one of the girls wants to bring in a new treatment, we look at competitors and we both agree on a price. I'm commercial so I can help the girls work out what the costs will be. We both have an interest in getting the pricing right. Yes, they can set their own pricing, but why not work together so we both benefit. Self employed works if you work as a team. The girls have their own clients but if they're busy, then another of the girls will do the client. Better that than 'we' lose the client. It's in all of our best interests that the salon succeeds. Everyone has keys. We have salon opening hours, but the girls can do treatments outside those hours. The girls control their own diaries. Their clients have their numbers/FB details. If a new client walks through the door, then whoever is free takes them. If we're all free, then whoever is best suited with skill does them. We do different things so a client may go to everyone in the salon. The clients also don't care who is employed or self employed. They want a consistent service regardless who they have. We have a salon phone if needed and a salon fb page and website. The girls share as the choose too. We have 'team' meeting. We have conflict too on occasion but we talk and deal with it. If they were employed, they would never earn the sums they do now. We all understand what self employed means and try very hard not to cross that very fine line. The girls do their own tax and NI and have all registered with HMRC.

The one frustrating thing with self employed is I cannot control what hours they work. There are times the salon isn't 'staffed' so I do a 12 hour day. It is what it is. I can't force anyone to come in. I also can't control what they do when they're in the salon. It's not their 'job' to busy themselves if they've got an hour in between client like an employed person would. My employed girls clean and replenish when not in treatments. They're kept busy when not busy. They have set hours and no client pressure.

There are pluses for both employed and self employed.

 

[tinetaylor26]

What a great model to be working with. It sounds like you have it just right.