Self employed stylists/beauticians

[Shelly1984]

What do you think is a fair deal in terms of self employed stylists and beauticians 'renting' and station in a salon? Do you charge per week and then take a percentage of their takings as well?

I'm not really sure what is the 'going rate' so would be grateful for any advice!

 

[Aphrodite26]

I pay £25 per day for 3 days a week. (I have a chair for brows/lashes and a nail desk) The salon books my appointments, provides tea and coffee and promotes me to the hair clients.
I can advertise in the window.
I use all my own products.

 

[pure]

What do you think is a fair deal in terms of self employed stylists and beauticians 'renting' and station in a salon? Do you charge per week and then take a percentage of their takings as well?

I'm not really sure what is the 'going rate' so would be grateful for any advice!

You can't have rent AND take a percentage lol it's one or the other!

I have rented space twice, at one it was £25 a day rent and at the other it was 40% per week.

 

[Sazash]

I am self employed in a salon and get 35% after vat of what I make

 

[AmynetballGA]

I have a prime location city centre salon and I charge £40 per day or a 60/40 split, I let them decide what works best for them initially & then we review after they've had chance to build a client base up. Hope that helps

 

[Nails<3]

I am self employed in a salon and get 35% after vat of what I make

Do you own the salon or just rent a chair?

Do you earn over the VAT threshold?

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[Sazash]

Do you own the salon or just rent a chair?

Do you earn over the VAT threshold?

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I just rent a chair, what's vat threshold? Cx

 

[Nails<3]

Why do you pay VAT on your takings?

Its when you earn over 75k or along those lines and you have to start paying/charging VAT.

If you earn under the VAT threshold then you don't pay VAT.

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[sdsurge]

Why do you pay VAT on your takings?

Its when you earn over 75k or along those lines and you have to start paying/charging VAT.

If you earn under the VAT threshold then you don't pay VAT.

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You can register for VAT at any point you start your business.
However, legally at £75K you must register for VAT. (Ideally before you reach the threshold which you should have forecasted)
Companies under the threshold may choose to register for VAT in order to claim VAT back on the products and services that they buy which has VAT.

 

[sdsurge]

You can't have rent AND take a percentage lol it's one or the other!

I have rented space twice, at one it was £25 a day rent and at the other it was 40% per week.

Yes you can. Where does it say that you can't?

You really think someone paying £100 per week cover the entire running cost of a salon? Have you read how many people on here complain of not having tea & coffee, advertising space, or storage for their belongs etc. These are auxiliary services, and go beyond providing a space and chair. This is why restaurants charge service charge for greater number of people at a table. They argue as their are more of you, then more services and staff need to be diverted to service you.

Disagree? Research how many Salons are closing or for sale in the UK.

 

[Sazash]

Why do you pay VAT on your takings?

Its when you earn over 75k or along those lines and you have to start paying/charging VAT.

If you earn under the VAT threshold then you don't pay VAT.

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Oh really ? If I earn the salon 1000 for example they will take off vat, and then I will get 35% I definitely don't earn over 75k. in my dreams !!

 

[Nails<3]

Oh really ? If I earn the salon 1000 for example they will take off vat, and then I will get 35% I definitely don't earn over 75k. in my dreams !!

But if you earn the salon £1000 you are employed.

The £1000 should be taken by you from clients and then the % you pay on each client or rent per day given to the salon. It is your earnings as you are self employed. You are a business working within another business. Totally seperate.

Does the salon take the money from the client. Do you pay your own tax and NI?

X

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[libbylou]

Oh really ? If I earn the salon 1000 for example they will take off vat, and then I will get 35% I definitely don't earn over 75k. in my dreams !!

It does not sound like you are self employed, you should be taking your own money and then pay the salon your rent/commission. If they are vat registered that should have no bearing on your takings. So many salons are taking advantage and using the self employed role as a means of not paying wages and holiday pay etc. Ring HMRC and they will clarify the situation for you.

 

[Sazash]

But if you earn the salon £1000 you are employed.

The £1000 should be taken by you from clients and then the % you pay on each client or rent per day given to the salon. It is your earnings as you are self employed. You are a business working within another business. Totally seperate.

Does the salon take the money from the client. Do you pay your own tax and NI?

X

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The salon takes the money and pays me my percentage. I pay my own tax and ni x

 

[libbylou]

Yes you can. Where does it say that you can't?

You really think someone paying £100 per week cover the entire running cost of a salon? Have you read how many people on here complain of not having tea & coffee, advertising space, or storage for their belongs etc. These are auxiliary services, and go beyond providing a space and chair. This is why restaurants charge service charge for greater number of people at a table. They argue as their are more of you, then more services and staff need to be diverted to service you.

Disagree? Research how many Salons are closing or for sale in the UK.

Well a service charge in a restaurant is not compulsory, you do not have to pay it. If you decide to rent space out within a salon , then charge accordingly. It would be morally wrong to charge rent & commission. You would find yourself with a high turn over of renters, as it would not be a fair deal. When you rent a room within a salon ,your rent is not going to cover the entire running costs of that salon , why should it .

To the first post, you should definitely only charge rent or commission NOT both. Do not be greedy , i would rather have some one long term, to enhance my business, than a constant turn over of new therapists because of impossible rents.

 

[libbylou]

The salon takes the money and pays me my percentage. I pay my own tax and ni x

The salon should not be taking your money, you should. You are a separate business within that salon. Do they give you set working hours or are you allowed to start & finish when you wont. Do you book your own clients. Who holds all the clients data ? x

 

[pure]

Yes you can. Where does it say that you can't?

You really think someone paying £100 per week cover the entire running cost of a salon? Have you read how many people on here complain of not having tea & coffee, advertising space, or storage for their belongs etc. These are auxiliary services, and go beyond providing a space and chair. This is why restaurants charge service charge for greater number of people at a table. They argue as their are more of you, then more services and staff need to be diverted to service you.

Disagree? Research how many Salons are closing or for sale in the UK.

The responsibility for covering "the entire running cost of a salon" lies with the owner, not someone who rents space!

Rent or percentage should be set at a realistic rate for both parties, whether that includes things like refreshments etc is entirely individual. In one salon I rented space I had my own facilities to provide tea and coffee so didn't use the main salons.

 

[Sazash]

The salon should not be taking your money, you should. You are a separate business within that salon. Do they give you set working hours or are you allowed to start & finish when you wont. Do you book your own clients. Who holds all the clients data ? x

They give me set hours they hold client data, I could just decide when I want to come on I have to request holiday I feel employee, on a self employed wage. Which is peanuts at the moment as it's not busy

 

[Nails<3]

The salon takes the money and pays me my percentage. I pay my own tax and ni x

Wow, they are not allowed to do that.

Your money should be seperate, everything to do with your business should be run through you.

You shouldn't be paying VAT on your earnings as you are not VAT registered. They are taking your earnings and taking far too much.

Do you provide your own products?

Having VAT charged on you and then only getting 35% of what you earn is incredibly greedy of the salon.



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[Nails<3]

You can register for VAT at any point you start your business.
However, legally at £75K you must register for VAT. (Ideally before you reach the threshold which you should have forecasted)
Companies under the threshold may choose to register for VAT in order to claim VAT back on the products and services that they buy which has VAT.

I didn't say the poster couldn't register for VAT but it is a pointless task if she is no where near the threshold which she has stated. The salon are charging her VAT when they shouldn't be. Its pure greediness on the salons behalf.

Its down to the salon owner with regards to the upkeep and bill paying of the salon and in no instance should this be put on the shoulders of renters.



Why make life harder when it doesn't need to be.

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