Self employed salon workers help!

[BeautyQueen88]

Hi guys, I'm opening a hair and beauty salon and I'm going to have self employed girls working on a 60/40% profit share. After a meeting with my accountant he warned me about this and said I should be very careful about supplying their equipment, providing uniform and he saud they should have separate business cards because a self employed person should have freedom to do all these things. So if I provide them, I could get in trouble,
Could you tell me what contract your on and what is supplied to you? Do you have it written into your contract that you cannot take clients from the salon to do mobile?
Thanks! Xx

 

[ssuk]

I think you need to be very careful. You can have the best contract in the world, but the HMRC can still find you as an employer. I would listen to your accountant, speak to the Tax man and tread careful.
from what i remember, some of the things that would mean you are not self employed would be:

having to wear a uniform
Not been able to choose own hours
Not using own equipment/stock
Not been able to send someone to work for you in your absence

the reality is, you can call them self employed, have a self employed contract, but one mistake makes them an employee.

In response to your question - if they are self employed, the clients are there's to take.
If they are signing a contract it could be seen as an employment contract.

sorry if that seems negative, or not what you wanted to hear, but I would hate to see someone fall foul, for doing what they think is right.

 

[BeautyQueen88]

Thanks for your reply, I'm happy to hear the negative I just want to make sure I'm doing it right!
Do you think it would be acceptable to say - we have equipment that you are free to use, but you can also buy your own? That way I'm not 'telling' them to use my stock. Likewise for uniform - you don't HAVE to wear it but I can provide you with one if you like?

 

[ssuk]

Maybe. To be honest i would not risk it. The consequences are too great.

Phone the tax man-they don't bite and ask for advice.

Not sure on the points u made - they seem valid but im not the Tax Man and its him you would have to convince if it went wrong.

Also from am insurance point of view, what if there client gets hurt when she is using your equipment????? i don't know the answer to that, just a thought i had.

Not sure what to suggest really.

 

[Sarah22]

Hi

I'm self employed, but I just pay a fixed weekly rent.

I chose my own uniform, some of the equipment was supplied (but I had most of my own anyway so I use that), we share the same business cards as the salon name has hair and beauty in the title, and we never have any problems.

 

[Justine'sHair]

Hello

When I trained in a salon they had girls on a 60/40% basis.

They did not wear a uniform, however was told to stick to reasonably smart/suitable clothes, I.e trousers/blouses etc, preferably dark clothes.

They had to use their own equipment/tools but colours and products were supplied so all of us would then be using the same brand.

They chose their own hours between each other to guarantee there would always be at least 2 of them in the salon at the time (there was 5 in total)

They also advertised through the salon using the business and appointment cards. However the card would read 'You will receive 10% off your next service with: StylistName'

So these could be the type of appointment cards you do, using the business name on them but making it clear who the appointments are booked with. Also a business card saying 'have an a appoontment with *stylistname* at *salonname*

Good luck x

 

[laurakate]

I think its better for a self employed therapist to supply her own products. That way, she can work out her budget in terms of what products she uses and what she charges for the treatments.

I think the word "self employed" is thrown around with great inaccuracy in this industry so I think it's great that you're making sure you do things to the letter

Best of luck with everything

 

[BeautyQueen88]

I think its better for a self employed therapist to supply her own products. That way, she can work out her budget in terms of what products she uses and what she charges for the treatments.

I think the word "self employed" is thrown around with great inaccuracy in this industry so I think it's great that you're making sure you do things to the letter

Best of luck with everything

Omg I've just realized she'd have to have her own prices wouldn't she!

I've just called hmrc and they said I need to call the status inspection helpline on Monday for advice.

My friend is self employed in a hairdressers and she does 50/50% split with products provided but she said if she wants to use another product she can buy it and charge it to the business.

My other worry is a card machine, we couldn't have payments go through it and give them their % weekly because they need to be incharge of their own money. But I think it might put clients off if they can't pay by card?

 

[pure]

I am self employed in a salon and I choose my own uniform, business name and branding, products, days and hours of work, I manage my own money (so can't use the salon card machine), set my prices and all clients are my own. If I want to also work elsewhere or mobile then I can. This is based on a % split.

You need to also look at things from the other persons point of view, not just your own. If you are going to demand that all or most of the above are done on your terms then why would anyone bother to be self employed in your salon, where not only can they not make their own business decisions but would not have a guaranteed income either.

When you take someone self employed on it has to be an agreement which benefits BOTH parties.

If you want to have a greater level of control then you should really be employing therapists.

 

[BeautyQueen88]

I am self employed in a salon and I choose my own uniform, business name and branding, products, days and hours of work, I manage my own money (so can't use the salon card machine), set my prices and all clients are my own. If I want to also work elsewhere or mobile then I can. This is based on a % split.

You need to also look at things from the other persons point of view, not just your own. If you are going to demand that all or most of the above are done on your terms then why would anyone bother to be self employed in your salon, where not only can they not make their own business decisions but would not have a guaranteed income either.

When you take someone self employed on it has to be an agreement which benefits BOTH parties.

If you want to have a greater level of control then you should really be employing therapists.

Thanks, It's not about controlling them I am looking for advice about other peoples self employed t&c's to make sure I'm doing it right

 

[lizzy13]

I am self employed in a salon and I choose my own uniform, business name and branding, products, days and hours of work, I manage my own money (so can't use the salon card machine), set my prices and all clients are my own. If I want to also work elsewhere or mobile then I can. This is based on a % split.

You need to also look at things from the other persons point of view, not just your own. If you are going to demand that all or most of the above are done on your terms then why would anyone bother to be self employed in your salon, where not only can they not make their own business decisions but would not have a guaranteed income either.

When you take someone self employed on it has to be an agreement which benefits BOTH parties.

If you want to have a greater level of control then you should really be employing therapists.

very well put, i agree with everything said here. I have always rented rooms and been self employed, i had my own phone line, business cards , outside sign and it has worked great for both me and the other person. Good luck

 

[ssuk]

I think, what ever anyone does, speak to HMRC, speak to an accountant, document the dates, times and names of who you spoke to.

At least then if things do go wrong, you can argue it was a genuine mistake.

The sad reality is, none of us here on a forum know the real position,and its not us that have to be convinced as to the status of an individual. Better to be safe than sorry i reckon and get all the formal advice you can.

Forums a good start tho, and gives an indication of some of the issues that could come up. I would say the original poster is on the right footing by considering the matter and looking into it. Well done you!