HMRC Guidelines To Rent A Chair For Hairdressers
Definition:
Independent Contractor – a self employed person who provides an independent hairdressing and/or beauty therapy service to the general public from within a salon owned and operated by another person or company.
VTAXPER69100 – Particular trades: Hairdressing: Guidelines agreed with the National Federation of Hairdressers
[Important note: Not all of the guidelines have to be met in any given situation. They remain what they are called, guidelines. They are indicators of the type of relationship that exists and some (like employment status of the stylists; the agreement between the parties – whether spoken or written, and the way the money/takings are handled) will carry more weight than others. In any event, you should always read them in conjunction with the foregoing guidance on hairdressing, in particular VTAXPER68600.]
Intent and General Principles
Guidelines
1. Status
The independent contractor (the Contractor) within a salon should be self-employed. An employee cannot establish an independent business within the establishment of the employer.
The business or enterprise of the Contractor should be independent of, and separate to, that of the salon and:
2. Access
Ideally, there would be separate access to that part of the salon in which the business of the Contractor is situated.
The Contractor to have access to their business at all times and have the ability to be open for custom at any time of their choice.
3. Clients
The clients should be in direct contract with the Contractor and be fully aware of this fact.
Complaints and claims from clients of the Contractor should be directed to the Contractor and not the salon.
Separate appointments (where applicable) should be maintained by or for the Contractor.
Casual clients entering the salon should themselves choose whether to patronise the Contractor or salon, and should have sufficient information to make such a choice based on:
The details, records, and addresses of clients who receive attention from the Contractor to be the property of the Contractor.
4. Money
The money received from clients attended by the Contractor to be the property of the Contractor, whether or not it is taken centrally.
Money collected centrally should either be handed over to the Contractor or paid into an account held in the name of the Contractor.
Money held for and on behalf of the Contractor, and the salon holding such funds should account to the Contractor for those funds.
5. Salon Environment
The salon should not exercise control over the Contractor, or impose upon the Contractor codes or standards relating to hygiene or behaviour unless applied equally against all parties with observance measured by an independent authority or peer pressure. Safety regulations imposed on the Contractor by the salon should be no more than that required to comply with current legislation.
The Contractor to be responsible for the conduct, appearance and presentation of the Contractor’s enterprise, and in particular for behaviour, hygiene and safety matters relating to, or arising from, the Contractor’s activities.
There should be clear agreements in respect of services provided by the salon including:
6. Agreement
There should be a clear agreement in writing between the salon and the Contractor that accurately reflects actual working practice.
There should be a clear statement in respect of the term of the agreement, and the obligations and responsibilities of the parties on termination, notice required on termination and where that notice is to be served.
That VAT is to be levied (when applicable) on the charge paid by the Contractor for the services provided by the salon.
The Contractor is responsible for insuring the enterprise against public and product liabilities, losses that could arise as a result of theft, fire, storm, accidental damage etc, and statutory cover in respect of staff retained by the enterprise.
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