Coronavirus: Financial support available to the hair and beauty industry
In the latest industry update; salons, spas and mobile therapists must remain closed until at least March 8th. Such news is panicking many in the industry due to financial worries. We’ve put together a list of all the financial support available to the hair and beauty industry at the current time. Hopefully it can help you and your business!
Latest Financial Support
All businesses affected by lockdown, including salons, spas etc, are eligible for a one-off Government grant. The amount your are entitled to will vary depending on the size of your business:
-£4,000 for businesses with a rateable value of £15,000 or under.
-£6,000 for businesses with a rateable value between £15,000 and £51,000.
-£9,000 for businesses with a rateable value of over £51,000.
For further information see the GOV website.
There have been a series of grants available for those who are self-employed and eligible through application on the GOV website. Details about the fourth grant will be announced on 3 March 2021.
The recently closed grant was worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total; the forth is predicted to be of similar value.
These grants do not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self Assessment tax return.
To be eligible for the grant you must be a self-employed individual or a member of a partnership. You can’t claim the grant if you trade through a limited company or a trust.
You must have traded in both tax years:
-2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
-2019 to 2020
How to apply:
Details on applying for the forth grant will be announced on March 3rd 2021.
For further details on the grant, whether you are eligible, and how to claim, click here.
Further financial support for the self-employed include:
- Universal Credit; a rate equivalent to Statutory Sick Pay (£95.85 per week)
- Tax deferral – you’ll now pay your normal ‘on account’ July tax bill in January 2021.
Deferring VAT payments
If you have deferred VAT between March 20th 2020 and June 2020, and still have payments due, you can;
-Pay the deferred VAT in full on or before 31 March 2021
-Opt in to the VAT deferral new payment scheme when it launches in 2021
-Contact HMRC if you need more help to pay
Coronavirus Bounce Back Loan
The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.
This scheme helps small and medium-sized businesses borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The scheme is open to applications until 31 March 2021.
12-month business rates holiday
There has been be a 12-month business rates holiday. This means the retail, hospitality and leisure industries won’t need to pay business rates from the 2020 to 2021 tax year.
How to apply:
You shouldn’t need to take any action. Your local council will apply the discount automatically.
You can estimate the business rate relief using the business rates calculator.
Contact your local council if you’re not getting a relief you think you’re entitled to or have any issues/questions regarding this.
Mortgage Payment Holiday
Mortgage lenders have announced support if your income has been affected by the coronavirus outbreak, including a repayment holiday of up to a maximum of six months. The deadline for applying for a repayment holiday is 31 March 2021.
Find out more information here!
You can get £95.85 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.
You cannot get less than the statutory amount. You can get more if your company has a sick pay scheme (or ‘occupational scheme’) – check your employment contract.
Hopefully you have found our guide on Financial support available to the hair and beauty industry USEFUL!
PLEASE GET IN TOUCH IF YOU NEED ADDITIONAL HELP!