VAT Limit with Employed & Self Employed

[Dain]

Hi, I own a salon and currently, we have employed and self-employed people working in the salon.

Currently, the customer could have services from our employed staff and some from our self-employed staff, however, the customer just pays 1 bill at the end into the till and then any self-employed give me an invoice for their part of the bill at the end of the week (they pay rent to me separately each week)

We are nearly at the VAT limit taking into account ALL takings from all staff (employed and self-employed) When we become VAT registered do we charge our customer VAT on services by the self-employed? or can these appointments be out of scope? (Or should their income not be included in mine?)

I know I will have to charge vat on appointments by my employed staff (and on top of the rent element to self-employed staff) but not sure if we can charge VAT on behalf of self-employed if they are not VAT registered?

Or do HMRC see it that customer pay me so I have to charge VAT on everything and self-employed only claim portion excluding VAT on their invoice to me?

Any help would be appreciated?

Thanks

 

[S2K]

You will have to charge VAT on all takings, as you are the supplier of the service. The only way you can avoid it is if your non-VAT registered subcontractors are paid directly, in which case the customer becomes theirs.