SPLIT the cost | Pocketmags.com

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SPLIT the cost

Growing your business by bringing in self-employed staff certainly has its benefits, but until now there have always been issues. From trusting your staff that you are getting paid the correct amount when commission splitting, to bumping into the VAT threshold if you are processing all the payments, it has all been a bit messy – until now.

Avoid registering for VAT

With a few self-employed staff working through the same card machine and bank, it is all too easy to hit the VAT threshold of £85,000. The only other option until now was separate card machines for each staff member, requiring a messy reconciliation of accounts to ensure everyone is getting paid what they are owed.

Beu has just released a huge update to end this for good. With Beu, all staff can use the same software and share a card terminal while Beu routes the payments to the correct bank accounts at the point of payment.

Imagine the following example. Jo owns a salon and has a self-employed staff member called Matt. In exchange for using her premises, Matt pays Jo 50% of each booking. Before Beu, they would sit down at the end of each day, calculate Matt’s earnings, and Jo would transfer Matt 50% of what he put through the card machine to his bank account. Not only did this take time and require trust, it also meant that Jo had to report all of Matt’s earnings as her own, which put her earnings over £85,000 and required her to register for VAT. This meant all services in her salon had an additional 20% VAT charge.

Split payments easily

Since moving to Beu, Jo doesn’t have to be registered for VAT, or sit down every day sending money to Matt. She simply adds Matt to her salon and sets his commission rate at 50%. Now, when Matt takes a payment at the end of the service, the payment is split, with 50% going to Matt’s bank account, and 50% going to Jo’s.

With this new set-up, Jo only has to account for her portion of Matt’s turnover, which puts her under the £85,000 limit, meaning she no longer has to be VAT registered. As customers at her salon were used to paying VAT on top of their appointment, she can now make 20% extra profit on all services, without having to raise prices.

Saving on VAT isn’t the only thing Beu can do for your business. Beu allows you to take online bookings and deposits; automatically calculates and pays any commission owed; takes payments with an integrated card reader; and much more. Beu software can help you grow your business while providing your staff and clients with a great service.

Available on any internet connected device, and on iOS and Android, get Beu now from just £25 a month. Find out more at  https://app.beuapp.com/get-software 

This article appears in December 2022

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This article appears in...
December 2022
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