The mandatory lockdown affects all specialists working in the hair and beauty industry, no matter if they run their own salon, rent space or work from home. As we want to deliver as much useful information and materials as possible, we have gathered advice on help schemes provided by the UK government. Bear in mind that many help schemes are still under development and that some elements may change as the situation progresses. For all the relevant updates, make sure to follow:
The government has ordered salons and barbershops to close from 23rd March 2020. Home appointments go against the government's strict social distancing instructions, which say you must stay at home apart from essential travel - this excludes treating customers on their own premises.
If you are self-employed (including members of partnerships) and are losing income due to the outbreak of COVID-19, you can take advantage of the Self-Employment Income Support Scheme. It allows you to claim a taxable grant worth 80% of your trading profits, up to a maximum of £2,500 per month, for the next 3 months. The period may be extended if needed.
You cannot apply for this scheme as of yet - you will be contacted by the HMRC if you are eligible, and will be invited to apply online. Get more information from the official guidance delivered by GOV.UK. Do not contact HMRC now - it will only delay the urgent work being undertaken to introduce the scheme!
Important: Beware of scams! You can access the scheme only through GOV.UK - text messages, calls and emails claiming to be from HMRC asking you to click on a link or to give information such as your name, credit card or bank details are most definitely phishing attempts.
Under the Coronavirus Job Retention Scheme, all employers in the United Kingdom are able to access support to continue paying part of their workers’ salary (for the employees that would otherwise have been laid off during the crisis - so hair and beauty salons’ staff fit the criteria). The support will cover up to 80% (maximum of £2,500 per person) of their salary. The payments will be backdated to the 1st of March 2020 and will be open for three months (for the time being).
HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.
The government has announced that the next quarter of VAT payments is deferred - deferral will apply from 20th March 2020 until 30th June 2020. However, the VAT bill will have to be paid in full until the end of the financial year.
This is an automatic offer with no applications required.
If you are due to pay your second self-assessment payment on account on 31st July, but are unable to due to the current situation, the payment can be deferred until 31st January 2021. You do not need to be self-employed to be eligible for the deferment.
This is an automatic offer, no penalties or interest for late payments will be charged if you defer payment until January 2021.
If your business is UK-based and small or medium-sized (250 employees or less as of 28th February 2020), you will be able to reclaim Statutory Sick Pay (SSP) paid for employees’ sickness absence due to COVID-19. You should maintain records of staff absences and payments of SSP. The scheme will come into effect the day after the regulations on the extension of SSP to those staying at home come into force. The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
This scheme is still under development - further details will be provided by the government once the legislation passes.
If your business is UK-based and you work in retail, hospitality and leisure (it is said to include salons and barbershops in England, we are still waiting for the decision concerning hair and beauty businesses in Scotland, Wales and Northern Ireland), you will be eligible for a year-long holiday from paying business rates.
This is an automatic offer with no applications required. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge.
If your business is UK-based, you occupy a property and you already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief, you can be provided with a one-off grant of £10,000. You can find detailed information in the government’s guidance for the local authorities concerning the grant schemes.
You do not need to do anything. You will be contacted by the local authority if you are eligible for this grant. For additional information, contact your local authority - use this finder to locate them in your area.
If your business is UK-based, is in the retail, hospitality and/or leisure sector and has a rateable value of under £51,000, you may be eligible for a grant of up to £25,000 per property. Businesses which don’t pay business rates are not included in this scheme. Businesses fitting these criteria with a rateable value of up to £15,000 will receive a grant of £10,000. Those with a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000. You can find detailed information in the government’s guidance for the local authorities concerning the grant schemes.
You do not need to do anything. You will be contacted by the local authority if you are eligible for this grant. For additional information, contact your local authority - use this finder to locate them in your area.
If your business is UK-based, has no more than £45 million in turnover per year and meets the other British Business Bank eligibility criteria, then you have access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. All of the requirements and list of accredited lenders can be found on the British Business Bank website.
Contact your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible to discuss your business plan.
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