The government has announced a few new help schemes for businesses all across the United Kingdom, as well as extensions and adjustment of the existing ones. We have gathered advice on the ones relevant to our industry. The below-mentioned grants and programs are dedicated to both salon owners with employees and solo specialists. Without any further ado, let’s see what you can do to receive financial support, what the current situation is with the loan schemes introduced earlier this year, and whether or not the eviction ban applies to the hair and beauty industry.
The government has announced a new help scheme dedicated to businesses who face a smaller demand during the winter months due to the COVID-19 outbreak. Under this scheme, the government will contribute to the wages of employees who are working fewer hours than normal and would otherwise struggle with keeping their job.
The business taking part in this scheme will continue to pay its employees, but the burden of hours not worked will be split between the employer, the government (through wage support) and the employee (through a wage reduction). The government will pay a third of hours not worked up to a cap, with the employer also contributing a third. Thanks to this, employees will be able to earn a minimum of 77% of their regular wages, where the government contribution has not been capped.
The main goal of the Job Support Scheme is to protect viable jobs in businesses that may struggle during a slow season. The government wants to focus on businesses that are being impacted by the COVID-19 outbreak, while still being able to support their employees, need more time and some backing to recover.
When it comes to businesses who can claim the grant, the criteria are as follows:
When it comes to employees who can take advantage of the scheme, the criteria are as follows:
Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
The scheme will begin on 1st November 2020 and will run for 6 months, until April 2021.
Employers will be able to make a claim online through the government website (gov.uk) from December 2020.
You can find all the available information on the new Job Support Scheme on the government’s website. It is said that more detailed guidance will follow shortly, so make sure to stay updated!
If you are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but face difficulties due to the lower demand for your services caused by the COVID-19 outbreak, you can take advantage of the grant extension.
You will receive two grants, paid in two lump sum instalments, each covering a three-month period.
The first instalment provides approximately the same level of support for the self-employed as is being provided for employees through the Job Support scheme. It will cover a three-month period from the start of November until the end of January. It will take the form of a taxable grant that will cover 20% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
The second instalment will cover a three-month period from the start of February until the end of April. The level of the second instalment is yet to be determined.
The criteria are as follows:
HMRC will provide full details about claims and applications in guidance on the government website (gov.uk) in due course.
You can find all the available information on the new Self-Employment Income Support Scheme grant extension on the government’s website. There will be more information available soon so stay tuned for that!
“Pay As You Grow” is an adjustment to the Bounce Back Loans scheme. Businesses who took advantage of that loan will be given the option to repay it over a period of up to ten years, nearly halving the average monthly repayment. Moreover, interest-only periods of up to six months and payment holidays will be available.
Furthermore, in case you took advantage of the Coronavirus Business Interruption Loan scheme, you will be able to extend the length of loans from a maximum of six years to ten years.
Finally, the government announced that four temporary loan schemes will be extended to 30th November 2020 for new applications. Namely, they are:
The government has decided to extend support to stop business evictions for the rest of 2020. The eviction ban applies to commercial tenants, including hair and beauty salons, barbershops, nail and eyelash bars and tanning shops.
There are also dedicated schemes available for particular countries of the United Kingdom. If you are a hair and beauty specialist from Northern Ireland, Scotland or Wales, you may be entitled to additional forms of financial assistance. Make sure to get familiar with:
It's no news that COVID-19 has been deeply impacting our industry, but with the government's support and hard work of all hair and beauty specialists that are affected, we are positive we will manage to pass through it all and come out stronger than ever. The Booksy team is proud to keep supporting salon owners and solo specialists to manage their businesses throughout these uncertain times. We do not only keep creating useful content but are also launching important features - like online gift cards and the COVID-19 disclaimer form - to help our customers make it through.
Grab your free Booksy account now and see for yourself how we can help you run your business effectively in the new normality.
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