Commision based chair rental

Published 24th Jun 2013 by Admin

Hi,

Im opening a new barbers and I would to set up a new pay structure that slightly moves away from the traditional chair rental to a commission based structure.

I would like to adopt a new structure that is more subcontracting the services than renting.

Firstly, I should point out that the barbershop will be 7 day, 51 week, and 6 chair business model of a projected £200,000 turnover in the first 12 months. It will be walk in service but bookable for clients with specific needs or time constraints.

So I would like to offer my new team a self-employed status on a 40% commission on services & 10% on products with monthly incentives for the best performers & product sales persons.

Even though they will be self-employed, there will be a company code of conduct & practice and pricing structure that they will be expected to adhere to. They choose their own hours but I will need to be notified of what they are.

I would also like to AGREE with each team member what hours that they will be committing to each month and request to be notified of any changes.

I would like all sales to go through the till with commissions paid at the end of each week.

I will pay VAT on all sales & they will be expected to pay their own IC & NI.

Now I know that this is a mixture of employment & self-employment rules but I’d like to know if with this structure I am breaking any laws with a sub-contracting structure?