How SplitSum Works
SplitSum automates the process of separating contractor payments from your business income, helping your VAT returns reflect only your share of each payment.
Client Pays
Your client makes a single payment via card, Tap to Pay, or payment link.
Automatic Split
SplitSum instantly divides the payment between your business and your contractors according to your predefined rules.
No VAT Stress
Your turnover reflects your true business income, excluding contractor's earnings.
Key Benefits & Who It's For
Key Benefits
- Save hours every week on admin
- Stay transparent. No need to adjust figures to manage VAT.
- Improve contractor trust and transparency
- Use your phone or card reader
Who It's For
- Tattoo Studios
- Salons, Barbers & stylists
- Med spas & injectors
- Beauty & Wellness studios
Frequently Asked Questions
What is VAT?
Value Added Tax (VAT) is a consumption tax applied to most goods and services in the UK. The standard VAT rate is 20%. Businesses with a taxable turnover above the VAT threshold (currently £90,000 in any 12-month period) must register for VAT and charge it on their sales.
How can SplitSum affect my VAT calculations?
SplitSum automatically separates contractor payments from your business income, helping ensure your turnover reflects only your share of each transaction. Depending on your setup, this may reduce your VAT liability. Always confirm with your accountant.
Is SplitSum compliant with tax regulations?
SplitSum’s approach follows standard accounting principles. The key point is that contractors earnings are sent directly to them and are not part of your business income. They never pass through your business bank account.
It’s your responsibility to maintain proper contracts with your contractors and ensure your wider business remains compliant. We provide a free contractor agreement template you can downloadhere.
Is this tax avoidance?
No. SplitSum simply reflects the genuine self-employed status of your contractors. If your staff are independent contractors, they are responsible for their own taxes, just as your business is for its own. Platforms like Uber and Lyft operate in a similar way, where each driver is an independent contractor. SplitSum and Lyft use the same underlying payment-split technology (Stripe) to automate this process.
How does the SplitSum platform work?
SplitSum integrates with Stripe to automatically divide incoming card payments between your business and your contractors in real time. When a client pays, the contractor’s portion is transferred directly to them, while your portion goes to your business account. The platform also generates clear documentation showing where each portion of the payment went.
How long does it take to set up SplitSum?
Most businesses can be fully set up on SplitSum within 1–2 business days. Our onboarding team will guide you through the process, helping you connect SplitSum to your payment system and contractor setup. You can also complete the setup yourself using our step-by-step guide here.
How do I get started?
Visit the sign up page to request access. Once your account is created, you can connect your Stripe account and start splitting payments instantly.
Disclaimer: SplitSum does not provide accounting or tax advice. The information on this page is for general informational purposes only and should not be relied upon as professional advice. Businesses remain responsible for determining their own VAT treatment. We recommend consulting a qualified accountant or tax adviser to confirm how these principles apply to your business.
Ready to stop stressing about VAT?
Register now and we'll walk you through setup.
SplitSum is a card-payment splitter for contractor-based businesses. Powered by Stripe. No dev work required. Start for free.
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