Self employed staff or employed?

[Hayley1]

Hi,
I am in the process of starting my own beauty salon.
I have come from a beauty salon where I was self employed. I would take home 60% of everything I earned. Obviously the salon owner took the rest and provided all the products and equipment. All her staff are self employed.
Do any other salon owners work like this?
I was wandering what would be easier for one and what would be better off for over all profit.

Many thanks, if anyone can answer my question x

 

[BannerPenguin]

Lots of places run like that and 60% of the self-employed person's takings with the salon providing everything was an extremely good deal for the renter.

It really depends on your business plan and if you want overall control or not. You can't dictate etc. to self employed people.

 

[Kayleigh12]

I don’t I just take a day rate of the girls and my day rate is £20 a day x

 

[salonsaviour]

Hi Hayley, I'm not sure if this will be useful to you...I recently wrote an article on this topic: 'Winning insights on self-employment for salon owners'.

https://www.salonsaviour.com/to-employ-or-not-to-employ-that-is-the-question/

Hope it helps you decide which system is best for you and your salon! If you have any questions, I will do my best to try and help

 

[Hayley1]

Thankyou very much, I will read through that now!x

 

[Kayleigh12]

Hi Hayley, I'm not sure if this will be useful to you...I recently wrote an article on this topic: 'Winning insights on self-employment for salon owners'.

https://www.salonsaviour.com/to-employ-or-not-to-employ-that-is-the-question/

Hope it helps you decide which system is best for you and your salon! If you have any questions, I will do my best to try and help

That’s great ... so in my salon the girls renting the space just pay me a day rate .... do I have any right to tell them what up wear ?

 

[salonsaviour]

Thankyou very much, I will read through that now!x

No worries! I hope it helped! x

 

[salonsaviour]

That’s great ... so in my salon the girls renting the space just pay me a day rate .... do I have any right to tell them what up wear ?

Hi Kayleigh, do you have a contract of sorts written up for your girls at all? You will still have some say as it is your salon premises they work in. Do you mention a dress code when they come on board?
I think its fair to say, most salons have a dress code or uniform of some description - so it wouldn't be out of the ordinary for you to ask them to wear/refrain from wearing certain items of clothing to fit in with your salon's requirements.
Alternatively, you could write it into your salon policy and review it with your girls? Hope this helps! I am happy to answer any more questions you may have if I can!

 

[AcidPerm]

https://www.salongeek.com/threads/hmrc-guidelines-for-determining-self-employment.295298/

The above thread contains the current guidelines on self employment as drawn up by HMRC. If you stick to them, you won’t go far wrong.

That’s great ... so in my salon the girls renting the space just pay me a day rate .... do I have any right to tell them what up wear ?

I would argue that if a salon owner tried to incorportate a dress code within their written contract terms for self employed stylists, HMRC are more likely to consider that as evidence of control akin to it being an employer/employee relationship. I think salon owners need to be cautious when drawing up a rental agreement to ensure that the details refer solely to the business terms of the relationship between the two parties.

Remember that each self employed person is effectively running their own independent business within the Salon premises. Obviously, you still need to check that prospective renters have high standards with regards to their quality of work etc. but you can’t dictate terms such as what hours they work or when they take holidays.

If you don’t want someone flaky with regards to their commitment, ensure you question them thoroughly during the interview process.

 

[Kayleigh12]

Hi Kayleigh, do you have a contract of sorts written up for your girls at all? You will still have some say as it is your salon premises they work in. Do you mention a dress code when they come on board?
I think its fair to say, most salons have a dress code or uniform of some description - so it wouldn't be out of the ordinary for you to ask them to wear/refrain from wearing certain items of clothing to fit in with your salon's requirements.
Alternatively, you could write it into your salon policy and review it with your girls? Hope this helps! I am happy to answer any more questions you may have if I can!

One of the girls wants to get a Tshirt with her business name on the top ... should I allow that as she is self employed

 

[AcidPerm]

One of the girls wants to get a Tshirt with her business name on the top ... should I allow that as she is self employed

You don’t have a choice. It’s her business. You are just her landlady renting out space in your salon.

 

[salonsaviour]

One of the girls wants to get a Tshirt with her business name on the top ... should I allow that as she is self employed

Hmm, it's a tricky one to broach with her. As AcidPerm says...being self-employed does mean they work for themselves. However, I think it is about mutual respect. You could try expressing that you would really rather she didn't - if that is the case? Hopefully, she would respect your reason why you are opposed to the idea.