Rent a chair schemes for hairdressers

Rent a chair schemes for hairdressers

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A client of mine is a hairdresser with one employee who wants to go self employed, renting a chair in the salon for a percentage of her takings. Does anyone have experience of a client being successful in running one of these schemes, and what are the implications for:
1) VAT (the salon currently opertaes below the VAT threshold). Would both incomes be added together for this purpose?
2) NIC - How do we avoid a problem with self employed status?
3) Sched D or A. Would the income from the chair be rental or trading income?
Grace Gariff

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By Tosie
30th Jun 2006 20:15

rent a chair
Anybody undertaking this needs to be very careful in the set up. In an ideal situation seperate appointment books, diaries, tills etc.stock purchase are operated.(in practice this does not always happen) The National hairdressing federation offers guidance to its members on the pros and cons.
If you are advising a client on this subject get prior approval from H M Customs and revenue, re Vat.Establish the self employed status with revenue prior to commencment.
many hairdressors succeed very well with the scheme but there are pitfalls.
Does schedule A still exist ?

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