Who pays the VAT on a employed commission based deal

[Brows to go]

Hi
I am going to start my brow and nail bar in a busy hair salon.

I am technically not self employed, and we have agreed a 60-40 commission split, 60 going to me as i supply all the product.

I will pay my social security, tax etc.

Now the salon owner is saying we must take of the 20% tax first before we split...

Is he right to do this?? surely its his business so he pays the tax on his 40% share.

Please help???

 

[LauraStreet]

I could be totally wrong. But if you are responsible for your own tax and are not recieving a salary then you are self employed.

You only have to pay VAT when you reach a certain income threshold too. So you may not be liable for this.

I would be doing the split before tax and then each of you is responsible for your own deductions.

Im sure a more experienced geek will advise better than me, it's just this is the way I did in when I had a room in a salon xx

 

[Lynne Baker]

You need to contact the Spanish version of HMRC for the definitive answer.