I want to open a hair salon with self employed stylists on a 50/50 basis. Will i pay VAT on their turnover?

I'm very confused on the chair rent in salons. I've been told that VAT is not applicable if I charge a fixed daily / weekly rate. I would prefer to have self employed stylists on a 50 / 50 set up. Will i still need to pay VAT on the percentage I make from them? Do i pay VAT on a flat rate chair rent? Would love to hear from a anyone who can shed some light on the VAT minefield of chair renting.I want to open a hair salon with self employed stylists on a 50/50 basis. Will i pay VAT on their turnover?
If you are registered for VAT then you will have to add VAT to everything you charge the stylist. If you are not presently registered for VAT you will have to be careful incase the amount you are charging the stylist takes you over the registration limits (currently 拢61,000 pa). Your Hairdressing Federation will have information about how to deal with chair rentals and how to word the agreement.I want to open a hair salon with self employed stylists on a 50/50 basis. Will i pay VAT on their turnover?
Not VAT, but their will be some tax added the revenue hat you recieve from them using your chair will be classed as your revenue and thus you will be required to pay tax for this revenue.





P.S. i would go and speak to the tax office as you may get misled.
u have them rent your chair,which you pay vat on premises for.


they are self employed,they pay their own stamps ,nat insurance,tax.what they give you is up to them to declare,if u know what i mean,
The powers that be would probably work out a similar thing to what happened in the building trade. You have a team of three workers, two brickies and one labourer and they all used to work out their own tax returns, Then along came the dreaded VATMAN who ruled one man in the team was self employed, the others were employed by him. This caused the break-up of many good teams of men, and quite a few friendships into the bargain. I saw former best friends in fistfights overr the ruling................