Self employment plan for workin in salon....advice needed pls

[yve93]

Self employment plan for workin in salon....advice needed pls
-Background: 11 yrs in admin world, newly qualified NVQ level 2
-Also planning to get speed wax training with Kim Lawless
-hairdresser salon owner is buying beauty equipt & products & wants me to work in her salon FRI & SAT every wk
-she did propose 30% cut & no minimum rate.*
-was thinkin of proposing following:
Fri & sat - guaranteed minimum of £6 x 8hrs (additional hrs £6 per hr) plus 5% on treatments carried out & 10% on retail
-any other days worked minimum callout fee £12 or £6 per hr plus 5% of treatments & 10% retail

It normally takes me 30 mins to drive to salon in rush hr, 15 mins otherwise.*

Any advice on whether I'm over pricing or under pricing would be greatly appreciated or if I've missed anything out x

 

[jes]

Hi,

I'm sorry but I don't believe any salon owner would pay a self employed renter any form of guaranteed wage or call out fee.

It is the norm to pay a percentage of your takings (30% is really cheap if the salon owner is providing equipment and products) or to pay a fixed rental.

 

[persianista]

What you are asking her for is a job!! The revenue would not regard your proposals as self employed either.

When you are self employed nobody is gonna guarantee your earnings like that.

 

[yve93]

The deal is that she wants me to be available in the salon all day on the Fri and Sat although she does not have a client base established yet, hence the fact that i thought i should bill per hour as i could be sitting around twiddling my thumbs...although i guess this is the nature of the game, espeically if want to have my own salon i'll have to get use to this.
perhaps i should ask for more than 30%, i.e. 40%? is this reasonable?

she also said she would pay for a bio sculpture gel course for me to go on, however she wants me to commit to every FRi and Sat for the next year if she sends me on the course.....! i'm confused not sure what to propose to her....any further suggestions grateful. my initial thought re this was to
-commit to 6 months (if i leave witin this period i pay full amount back)
-if i leave after 6 months - pay half the amount of the money back

sorry if i seem completely clueless - this is all new to me

 

[jes]

If you are self employed it means you are running your own business affairs including insurance and paying your own tax / NI etc. It isn't the salons responsibility to find you, or provide you, with clients, it's all up to you.

I imagine when the salon owner mentioned 30% she meant 30% of your takings to her and 70% to you . Personally I'd advise you to pay for your own training and preferably buy your own stock (they are your expenses and are tax deductible) and try and get a 25% split (75% to you). Do not to get caught up in any commitments, just, for the sake of a couple hundred quids worth of training

 

[yve93]

Thanks for the advice Jes. The owner wants to set up the beauty business and is quite keen that she will order equipt and products and pay for them so I guess if i was to leave she would just need to find someone else.
I'm new to the game so think it's a great opportunity for me without the risk initially of buying everything. I'm also new to the area so could not really bring a client base.
She has a hairdressing client base so is having salon for these clients.
She deffo did propose that she keeps 70% and I get 30% however I think her taking 60% and me taking 40% is more reasonable.....(do you agree)?

I get what your'e saying about the training, good point. x

I am just setting up as a new starter and have contacted business links through direct gov etc and I believe I need to register with HRMC within 3 months.

 

[jes]

She deffo did propose that she keeps 70% and I get 30% however I think her taking 60% and me taking 40% is more reasonable.....(do you agree)?

No, these percentages are way off the mark. Normally, a technician, who supplies their own products, pays something around 20 to 30% to the salon owner. If the salon owner provides the products then you would be likely to pay around 40 to 50% to the owner.

Normally a salon owner will provide the furniture but I still recommend that you insist on buying your own equipment and products. You are building your own business and you need to have the 'tools of the trade' should you wish to move on somewhere else. You need to have MSDS and do COSHH for the products you use, so buying your own will make it easier for you to find these documents. Buying your own stock will also remove any possibility of being accused of stealing or using excessive amounts as well

 

[persianista]

If it is a largish salon, taxation is now around 50% of turnover, so 30% to the therapist would only leave the salon owner 20% for stock, expenses and profit.

It is far better to have set rents and no involvement from the salon owner re- stock etc.
Also if there are demands as to hours worked etc, the revenue will regard it as employment and a tax dodge.

If the salon wishes to have control of the hours, stock and equipment, then they need to employ as opposed to rent.