All of our stylists are self-eomployed contractors and have their merchant account set up on Phorest. Currently all hair services revenue gets sent to their individual merchant account and any retail sales gets sent to our business account. As our stylists work on a commission basis, and given they get sent 100% of the hair services revenue, we invoice each stylist each week for our share of the revenue (60%). This set up is starting to cause problems for some of our busiest stylists due to turnover and VAT threshold, as HMRC will look at the total amount of revenue going into a stylists account to assess if they are over the VAT threshold, even if 60% of that revenue is going to be paid back to the salon. I believe there is a very easy fix for this that would be very appealing to all your Self Employed salon clients. Using the same functionality that allows you to send hair services revenue to the stylist through their individual merchant account and send any retail sales revenue (associated with same appointment) to the the salon's business account, it should be possible to send only the stylists share of revenue (40%) to their individual merchant account, and to send 60% of the revenue to the salon's business account. Allowing this would mean that Stylists are unlikely to go over the VAT threshold, and would mean that salon's no longer need to invoice stylists for its share of the revenue. The salon already pays VAT on the 60% share and this is included in the invoice, and this would not change. If you functionality allows for this, you will have a lot of very happy freelance stylists and a lot of happy salon owners. Please feedback on what is possible here, or if you need any further clarification on what I am looking for.
