Hi. I am new to this forum and I really hope that I could get some help from you. I have been aproached by a hairdresser who had recently opened a salon. I would love to take her as a client to improve my knowledges but I am so confused now :( Here is her situation - she is renting the salon and having two other girls working there. The renting contract is on that lady's name but one of the girls unofficialy pays her the half of the rent. Then they share some profit which is not very clear at the moment as this is only the beginning. Here is my question: would she be allowed to rent the chairs to the girls for a certain rate provided that on the tenancy agrrement a subletting is not permitted. Is chair rental a type of subletting and if so, can she declare the income as a serrvice charge for example and provide the girls with invoices. Then she might also get a percent of their income to cover all other expenses. Would it be easier to pay the rent herself and then pay the girls fees as self-employed hairdressers? And if she chosed to rent the chairs would it be neccessary for each girl to have a till for her own income? If all the money are to go to the same till then it seems too complicated to count each share on a daily basis..............so many questions and so much hope to get this sorted out........Thank you very much for reading this and trying to think with me :) Regards to all of you. Silviya
-- Edited by silviya on Thursday 29th of July 2010 01:08:01 AM
I would suggest you get your client to join the National Hairdressers Federation. I believe they have contracts that have been verified by hmrc when it comes to the rent a chair scheme. I think if the contracts are in place and the salon operates in the prescribed manner then it is very beneficial regarding vat/ self employment. The NHF will probably be able to answer all your queries too.
