The £200 Service Breakdown: Where the Maths Goes Wrong
A viral social media post claims a £200 salon service leaves just £22 in profit. The calculation contains multiple compounding errors — wrong VAT treatment, commission applied to the wrong figure, and NI counted twice.
Key Findings
- VAT must be deducted first — it was never the salon's money
- Commission should be 10% of £166.67 net, not £200 gross
- Employer NI double-counted as a per-service deduction
- Corrected contribution: ~£66, not £22