VAT are your takings subjected to it via salon till ?

[nail witch]

:cry: I recently closed my little nail salon to move into a hairdressers.
I secured a deal with the owner making it very clear that I would still have my buisness and still be self employed just it would be located within her salon to which she agreed. The money side was a good deal for me and we agreed a weekly amount to be paid on a percentage basis.
All my takings go through her till and I use their isalon system to book my appointments- but because my takings go through the salon till I am loosing an extra 17.5% as she pays VAT on all takings. I am not VAT registered and have been compleatly foolish in not realising this would happen. The owner failed to tell me about this too !!
I have tried to re-negotiate to no avail and also asked for my takings to be down to me but the salon owners accountant has advised her that for me to have my own till would be illegal ! ? .......
has anyone else encountered any problems like this........ I would love to know how other techs in salons work in these situations
nail witch xxxx

 

[~cHeRiSh~]

If you are self employed then you should be taking your own money and only pay VAT if you are over the threshold (which i am assuming you are not). You should have a rental agreement with the owner. She does not have to pay vat on someone elses business.

You can use her booking system, but dont arrive and depart you r clients through it. Or keep your own diary on reception desk.

Please get some advice from an accountant or maybe business link can help you, but this scenario isnt right. If you are self employed then she is taking an extra 17.5% of YOUR money.

Hope you get this sorted soon hun :hug:

 

[nail witch]

Hi there Cherish
You are right I am not registered for VAT and have spoken to my accountant who says that if the takings go through her till then I am subjected correctly to pay the VAT. BUT I dont think its right and she wont budge - I think my next move is the buisness link and tomorrow have been trying to sort this out for 6 weeks now, I am down £600 already - I could cry .....
Thank you hun :hug:
nail witch

 

[Lil Linz]

I might be completely wrong here, but couldn't you take payment for your treatments separately, so that they dont go through her till? I.e. if you get yourself your own cash box for your money to go in, that way everything is completely separate.

You may find that your rent is subject to VAT being added on top, if she pays VAT. Do you have a written contract with rent etc clearly stated?