Self employment help

[stanyer21]

I need some help of you guys that do self employment in a beauty salon and wonder how you work it..i currently have a girl work for me self employed as it's easier for me as my other girl is just part time and don't pay tax or ni. Anyway I'm finding it quite hard as if she has any gaps inbetween clients she is constantly moving clients around but I worry this will annoy clients and it seems constant and irrelevant to me . She also never does any tidying or cleaning as she isn't getting paid for that ?? I kind of had it in my head someone working self employed wouldn't make any difference and all staff would be the same. She uses my stock and the salons clients and I take 35 % of her income . I have a baby and currently can only work part time myself

 

[AcidPerm]

You have to stop thinking of her as 'staff'. She is just renting space from you. If she's self employed it's up to her to run her business as she chooses.

I certainly wouldn't expect her to help with any general cleaning or tidying when you have also got paid employees. That's part of their normal duties.

Also, she shouldn't really be doing the salon clients because then, they legally become her clients and she's responsible for keeping their records updated. You really must (for legal reasons) keep separate client record systems.

 

[stanyer21]

I don't feel like she is renting a space as when she started with us I told her I could provide her a clientele as she didn't have one but it was the only way she could work full time . I basically run a small shop which I ran on my own and then got a junior in part time who I trained up. Years later I went on to have a baby so cut my hours to part time whilst the other girl ran it for me whilst I wasn't there. Then she told me she was pregnant so I was left with no option but to get someone else in . The clients ring my shop as we have a good name but I have to pass them on to her as I don't have time to do them. I am trying to fit a weeks worth of clients into 3 days so if o can't fit them in with me for that appointment I move them into her coloum. We use one book. I just feel I have to tidy the salon so why shouldn't everyone . :/

 

[stanyer21]

I don't feel like she is renting a space as when she started with us I told her I could provide her a clientele as she didn't have one but it was the only way she could work full time . I basically run a small shop which I ran on my own and then got a junior in part time who I trained up. Years later I went on to have a baby so cut my hours to part time whilst the other girl ran it for me whilst I wasn't there. Then she told me she was pregnant so I was left with no option but to get someone else in . The clients ring my shop as we have a good name but I have to pass them on to her as I don't have time to do them. I am trying to fit a weeks worth of clients into 3 days so if o can't fit them in with me for that appointment I move them into her coloum. We use one book. I just feel I have to tidy the salon so why shouldn't she to.she is using the full salon so it needs to be kept maintaned I don't pay my employee to do this as she is only in part time and is busy with clients to so I tend to do it myself

 

[Ruby S]

I completely agree that everyone should take responsibility for the cleanliness and hygiene of the salon. I have 2 self employed stylists and when I leave earlier than one of them the salon is a mess when I return and I have to spend extra time cleaning colour out the basin (that I don't use, but don't want stained because a. it was expensive & b. because I don't want the reputation of the salon to go downhill because someone can't clean up), sweeping hair that has been kicked around and generally tidying mess that I haven't made… this is wrong, lazy and disrespectful. Everybody should take pride in their work and the area that they (and the rest of us) have to work in. I have come to accept it because no matter how many times I've asked for things to be left a certain way, it just doesn't happen. I can't understand why they can't pick up a cloth and clean some equipment (that they regularly use) when they are waiting between clients instead of reading magazines?!! I feel like i'm ranting again...

 

[stanyer21]

I completely agree that everyone should take responsibility for the cleanliness and hygiene of the salon. I have 2 self employed stylists and when I leave earlier than one of them the salon is a mess when I return and I have to spend extra time cleaning colour out the basin (that I don't use, but don't want stained because a. it was expensive & b. because I don't want the reputation of the salon to go downhill because someone can't clean up), sweeping hair that has been kicked around and generally tidying mess that I haven't made… this is wrong, lazy and disrespectful. Everybody should take pride in their work and the area that they (and the rest of us) have to work in. I have come to accept it because no matter how many times I've asked for things to be left a certain way, it just doesn't happen. I can't understand why they can't pick up a cloth and clean some equipment (that they regularly use) when they are waiting between clients instead of reading magazines?!! I feel like i'm ranting again...

At the moment this is exactly how I feel its just always a mess and it's hard when we all share the space . I feel I use my time so widely and if I have a spare 30 min I would tidy around not go out :/

 

[AcidPerm]

I don't feel like she is renting a space as when she started with us I told her I could provide her a clientele as she didn't have one but it was the only way she could work full time

Sorry, I appreciate what you're saying but your feelings about it are irrelevant when it comes to the legal position. Unfortunately, it sounds like you've blurred the line between employed and self-employed in the way that you've run your salon and you run the risk of HMRC deciding that it's a sham employment arrangement. If they did this, you could be fined as well as required to pay outstanding NMW, holiday & sick pay, income tax and national insurance payments for the entire period of her 'employment'.

If she is paying her own tax and NI contributions, she's self employed and 100% responsible for managing her own business. You're simply her landlord in this instance.

If she's accessing your client records, you're actually breaking the law as the Data Protection Act requires you to ensure that your client records remain confidential within your own business.

In terms of cleaning, I would expect most self employed staff to work tidily so I would expect her to keep her work area clean but not necessarily contribute to general salon cleaning.

 

[stanyer21]

Sorry, I appreciate what you're saying but your feelings about it are irrelevant when it comes to the legal position. Unfortunately, it sounds like you've blurred the line between employed and self-employed in the way that you've run your salon and you run the risk of HMRC deciding that it's a sham employment arrangement. If they did this, you could be fined as well as required to pay outstanding NMW, holiday & sick pay, income tax and national insurance payments for the entire period of her 'employment'.

If she is paying her own tax and NI contributions, she's self employed and 100% responsible for managing her own business. You're simply her landlord in this instance.

If she's accessing your client records, you're actually breaking the law as the Data Protection Act requires you to ensure that your client records remain confidential within your own business.

In terms of cleaning, I would expect most self employed staff to work tidily so I would expect her to keep her work area clean but not necessarily contribute to general salon cleaning.

Aww I don't know what to do I am so confused about it all now I didn't know it was all that technical. She has only been working self employed for 4 weeks before this she was working for me 2 days a week but just since Xmas

 

[AcidPerm]

Don't worry.
Read this and just try to keep within the guidelines and you should be fine.

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

 

[stanyer21]

Thanks and does she need her own business name