In light of the UK government’s latest recommendations that people should avoid contact with others to prevent the spread of Coronavirus (Covid-19), many hair and beauty salons will need to reduce operations, or possibly even close, for a significant period of time. So far, only places where people socialise such as clubs, bars and restaurants have been officially told to close. It may be that further official restrictions come into force soon and we understand how difficult and worrying this period may be.
The UK Government’s recently announced stimulus package offers some hope in the form of several financial support initiatives aimed at assisting the retail, leisure and hospitality industry - which will include hair and beauty salons. Treatwell hopes that these packages will maintain the UK’s successful hair and beauty businesses and the skilled workers that you employ through this difficult time.
This includes a package of measures to support businesses including:
- Coronavirus Job Retention Scheme: announced on 20th March, is highly significant. In an effort to protect jobs, the Government has offered grants to cover the wages of those who cannot work due to the restrictions that have been put in place, but have not been laid off. In return for businesses keeping staff on the books, employees will receive 80% of their salary up to £2,500 per month. This will cover staff who were on your books from the 28th February onwards, even if you have had to let them go subsequently. The Government has said the first grants will be paid within weeks and the scheme will be fully operational by the end of April.
- deferring VAT and Income Tax payments: Businesses will now not have to pay any VAT until the end of June and will have until the end of next year to make the payments. Self-assessment payments will be deferred to the end of January 2021.
- a Statutory Sick Pay relief package for SMEs: employers with fewer than 250 employees will be able to reclaim Statutory Sick Pay for employees unable to work because of coronavirus. This refund will be for up to 2 weeks per employee.
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans. These loans will be interest free for 12 months.
- the HMRC Time To Pay Scheme
To help you get the best support during this uncertain time, we’ve outlined how to check if your business is eligible, compiled details about financial support measures available across the UK, and provided information on what you could do next.
- How do I know if I’m eligible?
- What’s included?
- Cash grants for retail, hospitality and leisure businesses
- If you own a salon in England
- If you own a salon in Scotland
- If you own a salon in Northern Ireland
- If you own a salon in Wales
How do I know if I’m eligible?
All UK businesses are eligible but Business Rates relief varies by nation as below.
The Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch in a few weeks to help businesses access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £1.2 million in value. This new guarantee will initially support up to £1 billion of lending on top of current support offered through the British Business Bank. Businesses can access the first 6 months of that finance interest free, as the government will cover the first 6 months of interest payments.
Cash grants for retail, hospitality and leisure businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they can receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
Support for the self-employed
Self-employed workers can apply for a grant worth 80% of their average monthly profits to help them cope with the financial impact of coronavirus, the chancellor has announced.
The money - up to a maximum of £2,500 a month - will be paid in a single lump sum, but will not begin to arrive until the start of June at the earliest.
If you own a salon in England
Small business rates waivers
New measures mean there is now a business rate holiday for the next 12 months for all retail, hospitality and leisure businesses.
There will be an increase in grants to small businesses eligible for ‘Small Business Rate Relief’ from £3,000 to £10,000. Also, there will be further £25k grants available to small salons operating from smaller premises, with a rateable value over £15,000 and below £51,000.
If you own a salon in Scotland
Small business rates waivers
Based on the government budget announcement, from 1 April 2020, there will be a 75% rates relief for retail, hospitality and leisure businesses that have a rateable value of less than £69,000.
An £80m fund has been allocated to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of coronavirus (Covid-19).
According to the government website, businesses affected will be contacted.
If you own a salon in Northern Ireland
While The Northern Ireland Government hasn’t yet confirmed what specific programs will be rolled out for businesses, the Treasury has announced that Northern Ireland will receive £260m to support its response to the coronavirus outbreak.
If you own a salon in Wales
Small business rates waivers
Retail, leisure and hospitality businesses with a rateable value of £51,000 or less will receive 100% business rate relief.
A further £100m will be available for a new grant scheme for small businesses.
How to apply
Please follow the gov.uk website carefully as it is continuously updated with the latest information on how to apply. That website will have all the information you need to access or apply for these packages.
HMRC Tax helpline for all of the UK
The government has also set up a dedicated helpline to support businesses and self-employed individuals. If your business is suffering financially with outstanding tax liabilities, you can use the helpline to receive help with tax affairs. Through this initiative, businesses may be able to agree to a bespoke Time to Pay arrangement.
If you are concerned about being able to pay your tax due to the impact of the coronavirus (Covid-19), please call HMRC’s dedicated helpline on 0800 0159 559.
Please note: as we gather further updates we’ll update this post.
We referred to the following sources when writing this article: