Self employed, weekly rent and percentage split

[Saralou]

Hi everyone,

I'm looking for a little bit of advice. Today I went to visit my friend in a salon who rents the chair along with another 3 stylists.

My friend used to work in my salon with me before I sold and moved away and she was telling me she gets charged £200 a week for the chair as it's based in a gym just outside of Manchester but on top of that the owner takes a percentage split from her of 60/40, my friends the 60%.

I was thinking is this what the rules of self employment are and thought Salon Geek would be great for information. When I had self employed staff I either charged a daily/weekly rate or a percentage split but not both. She also does not handle her own appointment book as it's on the owners system and does not buy her own products.

Any advice or information would be greatly helpful and appreciated and thank you in advance.

 

[salonfrog]

Hi Saralou

Can your friend make any profit on that arrangement. It seems well over anything I’ve ever seen?

 

[Saralou]

Hi Saralou

Can your friend make any profit on that arrangement. It seems well over anything I’ve ever seen?

Thank you for your reply. No unfortunately shes not making a profit and she's struggling to make a wage. I have recommended she look elsewhere. I thought the same as you and I couldn't believe it when she told me. Ive never heard of it being that high before and wanted to see if anyone else has been in a situation like it.

 

[Beckybee]

If your friend earns £500 in a week, she has to give £200 for her chair and £200 being the % split of the £500, leaving her with £100

That's not good

My stepson pays £200 pw for his chair, while Thursday, Friday and sat are good days, Tuesday and Wednesday he only earns £20 after rent is taken off due to it being slow

 

[AcidPerm]

That sounds excessive!
It's unusual to mix weekly rent and percentage split, unless the rent is a token amount and the stylist is new without a clientele.
I'd say that £200 a week rent on its own would be reasonable. (Daily rent is usually based on the price of a cut/blow dry.)
However, it's really up to the the two parties to negotiate a deal so if she's struggling to make money, she should look for another salon to rent in.
Maybe refer her to the HMRC sticky post at the top of this forum to give her some pointers for future negotiations.