Holiday break in rent-a-chair contract
- Thread starter swilks12
- Start date
Help Support SalonGeek:
hair206
Well-Known Member
No they should pay even when on holiday I do x
hair206
Well-Known Member
I would love if I didn't but it's common practice and renters know that xx
tronk7
Well-Known Member
I rent a chair and don't pay rent when I'm on holiday ( I have to have a full week off not to pay, I can't just have the odd day off).
- Joined
- Aug 11, 2011
- Messages
- 10,907
- Reaction score
- 6,923
I think it's not very common for most chair rental contracts to allow for a holiday break, but some salons choose to offer it as an incentive to promote good relations and to keep hold of the best workers.
customs and excise look on any “rental” is for 52 weeks a year if they are truly independent of the salon owner and no rent free holidays .also percentage deals are illegal as there is a tax liability issue here . You can build the rent free two weeks by your calculations over the 50 weeks . Remember the independent chair renter has to be totally free of the salon owner .
The hairdresser federation run work shops with customs and excise which I have attended for clarity re V A T .the main grey area is when you combine everyone in the salon there takings as a whole are over the v a t threshold but because they are independent no individual is over the £85000 be carful to this !!!!!
The hairdresser federation run work shops with customs and excise which I have attended for clarity re V A T .the main grey area is when you combine everyone in the salon there takings as a whole are over the v a t threshold but because they are independent no individual is over the £85000 be carful to this !!!!!
Hi Joppa guy, could you tell me why percentage is illegal if you’re paying tax on it?
I have spoke with NHF and my accountant and they recommend percentage OR weekly or daily fee? I can’t believe these legitimate places for advice would recommend doing it if it’s ‘illegal’ do you have a salon?
Hi there
I attended a meeting with custom and excise with The federation
When there was a change to v a t regarding chair renting in hairdressing about 3 or four years back it is a grey area for v a t
The guy who was there was the ex head of investigation at custom and excess now a director with an accounting company
He explained with regard to percentage set ups it’s the way the tax and v a t is collected which is the main problem especially with mixed staff on payroll and self employed renting chairs .
Particularly who is liable in the collection of tax .chair rental has a magic word RENT which strangely comes under land taxation .there were many people at that meeting and we were all asked to explain our business set up and out of 43 business there were 3 vat legal ,I had a stand up argument with a fellow salon owner who had a percentage set up and I explained that they were no being looked at by customs she was furious and thought I was talking **** . A couple of years ago I bumped into her and she thanked me as it turned out I was right what I’m saying is it’s all in the collection at source but double check with your advisers please ,all I’m saying is be cautious all the best
Even with my legal percentage terms and conditions drawn up by the national hairdressers federation, the chair rental is classed as income therefore taxable. Same for weekly rent. Even with that I’m still waaaay under the vat threshold so to tell ppl that it’s illegal to have booth renters on a percentage set up is wrong. As long as your booth renters truly are self employed and you pay owed tax then it’s not illegal. So you work for the national hairdressers federation? Or Hmrc? Own a salon? Xx
Last edited:
- Joined
- Aug 11, 2011
- Messages
- 10,907
- Reaction score
- 6,923
You’re getting confused.
The term generally used is ‘Rent a Chair’.
It has nothing to do with renting property.
Sub-letting of premises is an entirely separate issue.
Hello guys
Very interesting this discussion about chair rental ,this morning I had a conversation with customs and excise as well as the hairdressers federation as I’m looking for clarity about this issue of holiday rent breaks .I am looking for a fair deal for my self employed staff as well as for my Business the revenue has explained it is entirely up to me if I give them rent free periods for holidays and as long as we have a contract it should simply state whether we rent for 52 or say a 48 week rent agreement depending what I want to give them .My confusing as it were was when I received a different answer from the V. A. T seminar that I had attended .But a warning here the definition of self employment is being looked at by the revenue and will have a strict wording as to what true self employment will be as we have seen with gig and in particular Uber
And also the V. A. T. Threshold might be reduced to a turnover of £43000.
Very interesting this discussion about chair rental ,this morning I had a conversation with customs and excise as well as the hairdressers federation as I’m looking for clarity about this issue of holiday rent breaks .I am looking for a fair deal for my self employed staff as well as for my Business the revenue has explained it is entirely up to me if I give them rent free periods for holidays and as long as we have a contract it should simply state whether we rent for 52 or say a 48 week rent agreement depending what I want to give them .My confusing as it were was when I received a different answer from the V. A. T seminar that I had attended .But a warning here the definition of self employment is being looked at by the revenue and will have a strict wording as to what true self employment will be as we have seen with gig and in particular Uber
And also the V. A. T. Threshold might be reduced to a turnover of £43000.
Guys
My apologies if I have worried anyone I simply wanted clarity for both parties re chair renting and what is the correct way to set up our Business’s to be TAX legal . I must also say that something that has become apparent is not all our professional bodies that we ask advice know the correct answer !!! That is why there is confusion to an all to grey area in our business. Best wishes to all .
My apologies if I have worried anyone I simply wanted clarity for both parties re chair renting and what is the correct way to set up our Business’s to be TAX legal . I must also say that something that has become apparent is not all our professional bodies that we ask advice know the correct answer !!! That is why there is confusion to an all to grey area in our business. Best wishes to all .
Similar threads
