We’re aware that Slimming World has published a number of scenarios within the Consultants’ Zoom Magazine this month (September 2018) in relation to venue rent and percentages
The examples provided by Slimming World show the change in earnings depending on whether your venue rent is deducted before or after your Franchise Fees are paid to Slimming World.
The article confirms that you “physically pay the rent on your venue” (As we have confirmed in our Venue Rent article, and in several Facebook posts), however suggest that they effectively contribute towards it due to the earnings percentage effecting the final balance.
Whilst the location of where the rent amount is in the calculation impacts the amount you pay to Slimming World, they still do not pay towards your rent.
Venue Rent is paid in full by the business (in this case, the self-employed Slimming World consultant). You should use the full rental value as an expense on your tax return.
An example on the Venue Rent article explains how you would view this at the end of group, when you open your franchise account. The total group fees is your income from the group, then expenses are taken off (such as venue rent and your franchise fees). You can view the example here.
To clarify further that the rent is paid in full, another example is where a group is run and no members turn up, resulting in the group income being £0. The venue will still need paying, and the amount is paid in full by the business, as Slimming World do not contribute to this.