The Budget For The Hair And Beauty Industry
The Latest Budget for the Hair and Beauty Industry:
Furlough Scheme extended
Furlough has been extended until the end of September 2021. Employees are currently receiving 80% of their wages through the scheme, however employers will soon have t contribute 10% in July and 20% in August and September. Many of those in the industry that are currently on furlough have concerns about job losses over summer.
The Self-Employment Income Support Scheme has been extended
The fourth grant will cover February to April, and is worth 80% of average trading profits up to £7,500. A fifth grant will be available from July covering the period May to September 2021. The amount allocated in the fifth grant will depend on: whether your turnover has fallen by more than 30%, in this case you will continue to receive the full 80%. However, if it is less than 30% your grant will be reduced to 30%. The scheme will be expanded to allow those who became self-employed in the 2019-2020 financial year to claim provided they filed a tax return by midnight last night.
From April 2021, the government is offering Restart Grants of up to £18,000 for individual businesses within the industry. The scheme will see £5bn across England and £794m in extra funding to Scotland, Wales and Northern Ireland.
For those not eligible for restart grants, local authorities in England will get £425m to support businesses.
Business Rate Holiday
The 100% Business Rate Holiday initiative will end in June 2021, a discount of up to two thirds will follow for the rest of 2021.
Businesses in England that take on apprentices will receive double the usual incentive payments (£3000).
Grow to help Scheme
A UK-wide ‘Help to Grow’ scheme aimed to help small and medium-sized businesses across the UK learn new skills, reach new customers and boost profits will be introduced. This includes a 12-week management programme and free technology advice plus discounted software. Register now at gov.uk/helptogrow.
Reduced Tax Bill
For two years, businesses will be able to reduce their tax bill by 25p for every pound they invest in new equipment under a ‘super-deduction’ scheme’.
Statutory Sick Pay (SSP)
Small and medium-sized hair and beauty salons in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the government.
Recovery loans of between £25,000 and £10m will be available with a government guarantee to lenders of 80%.