Financial support for salons / freelancers

These are unprecedented times and it can be quite overwhelming. So, to help with this, we’ve brought together a round-up of the financial support available to you. If you bookmark this page, we’ll do our best to update this article as new support packages are announced, but you may also want to bookmark these key pages: 

Coronavirus Financial Support for Businesses

Coronavirus Financial Support for the Self-Employed

Coronavirus Financial Support in Scotland

Coronavirus Financial Support in Northern Ireland

Coronavirus Financial Support in Wales

What financial support is available to salons during the coronavirus pandemic?

(Please seek out the relevant financial information for your country) The government have announced a range of financial support packages available to businesses and individuals that range from loans and grants to deferred bills. If you ran a salon you have several new options available: 

Coronavirus Business Interruption Loans 

The government announced that they will provide guarantees to lenders for loans to small and medium-sized businesses who otherwise may struggle to secure financing. If your business turns over less than £45m per year then you could. The loan scheme, which will include no interest payments for the first 12 months, is now up and running and more details on how to apply can be found at the British Business Bank website. 

Business Rates Holiday 

There will be a 12-month business rates holiday for those in the retail, hospitality and leisure industries, which you can apply for directly with your local authority. This basically means your business rates bill has been reduced to £0 for the next 12 months. More information can be found over here. 

Government Grants 

For those with a salon with a rateable value below £51,000 but over £15,000 can apply for a one-off cash grant of up to £25,000 by contacting their local authority. 

Those businesses who are able to receive the small business rates relief and fall under that £15,000 limit are eligible to receive a one-off grant of £10,000. The best part – you don’t even need to apply. Local authorities are set to contact eligible businesses in early April. More information on these grants can be found here. 

Coronavirus Job Retention Scheme 

In an unprecedented move the government announced that all UK businesses, big and small, can apply for support towards the wages of “furloughed workers”. What this means, basically, is that should you need to temporarily put any of your staff on leave due to reduced demand in the salon, the government will reimburse 80% of their wages up to £2,500 per month. 

This means less people losing jobs, less pressure on employers to pay wages, but a full team ready and raring to go when this is all over and done with. Let’s face it, there’s going to be a lot of hair to cut, a lot of nails to shape and a lot of waxing to be done once this is over – the last thing you need is to be understaffed! More details here. 

Deferred Tax Payments

I bet you’d have never thought you’d be hearing good news about tax!? VAT-registered businesses will have all payments deferred until at least 30^th June 2020. Income tax payments for your own self-assessment have also been deferred, meaning that the bill you had due on 31^st July 2020 has been pushed back to 31^st January 2021. 

These are both automatic offers, so you don’t need to apply or fill in any forms. More details can be found here.

Paying Your Staff 

If you have staff that have staff that have been placed on furlough (this means they are not working during the coronavirus crisis but they have remained on your payroll rather than being laid off), the government will reimburse 80% of their salary up to a maximum of £2,500 per month.

Various Personal Support Packages 

From mortgage holidays, renter protection, potential weekly cash payments and relaxed criteria for credit card extensions, it seems even the banks are trying to help! The best thing to do is communicate. If you’re worried or having financial issues, speak to your bank or credit card provider and discuss the situation with them to find the best solution. For more information on how to apply for the reimbursement, click here.

What financial support is available to hair, nails and beauty freelancers and the self-employed during the coronavirus pandemic?

(Please seek out the relevant financial information for your country) Unfortunately, some of the finance options for businesses with a physical salon are not available to freelance workers, such as business rates holidays and cash grants. However, the government have announced support for the self-employed.

Self Employed Income Support Scheme

If you’re self-employed and have lost income due to coronavirus, this scheme will allow you to claim a grant for 80% of your average trading profits up to a maximum of £2,500 per month for three months (this may be extended). You can apply if you:

• Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• Traded in the tax year 2019-20
• Still trading when you apply, or would be if not for coronavirus
• Intend to continue to trade in the tax year 2020-21
• Have lost trading/partnership trading profits due to coronavirus
• Have trading profits of under £50,000 per year

The government will then use the average trading profits on any self-assessment tax returns submitted between 2016 and 2019. The grant will reflect 80% of those average trading profits up to a maximum £2,500 per month for 3 months and will be paid in one instalment.

The scheme is not yet taking applications, but it is expected that the first grants will be paid in June. For more information on the scheme, visit GOV.UK.

Deferred Tax Payments 

Income tax payments due on your self-assessment have been deferred, meaning that the bill you had due on 31^st July 2020 has been pushed back to 31^st January 2021. This is an automatic offer, so you don’t need to apply or fill in any forms. More details can be found here. 

ESA and Universal Credit 

You’ll know already that self-employed workers are not eligible for statutory sick-pay. However, the Employment Support Allowance covers those unable to work due to a risk to public health. So, should you find yourself with symptoms and unable to work you may be entitled to this. Under 25’s can receive up to £57.90 per week and over 25’s up to £73.10. It’s a start, at least. You also have the option to apply for Universal Credit whilst self-isolating. More details can be found here. 

Personal Support

If you have a mortgage, contact your bank to apply for a mortgage holiday of up to 3 months. This means no mortgage payments for 3 months, with minimal impact on future payments if you have a long term remaining and no impact on credit scores. 

If you rent, the government have imposed a blanket ban on rental evictions to give you security in your home should you have difficulties paying rent. 

Speak to your credit providers – many banks and credit card companies are allowing emergency limit increases and waiving fees for late payments to help support those in financial difficulty. 

What are the differences in financial support for salons and freelance businesses in Scotland, Wales and Northern Ireland?

Many of the same financial support packages listed above still apply across Scotland, Wales and Northern Ireland – particularly the personal support such as universal credit and the coronavirus job retention scheme. 

Businesses in Wales, Scotland and Northern Ireland could also potentially benefit from the following schemes and announcements:

• Support for businesses who are paying sick pay to employees.
• Support for businesses through the Coronavirus Business Interruption Loan Scheme via the British Business Bank. The scheme will be interest free for 12 months.
• Businesses will receive government grants worth up to 80% of wages to keep workers in jobs. The Coronavirus Job Retention Scheme will pay up to £2,500 per worker each month, helping those who are self-isolating or caring for loved ones.
• VAT payments for the next quarter will be deferred, so no business will pay any VAT for the next three months.
• The Self-employment Income Support Scheme will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by COVID-19.

To check which of these you may apply for, visit the government coronavirus advice page for Scotland, Wales or Northern Ireland.

Additionally, the Scottish government has announced a package of measures worth £2.2 billion to support Scottish businesses.

• Changes have been made to business rates in Scotland for 2020-2021 along with extra rates relief.
• Businesses in Scotland can apply to the Business Support Fundfor a grant to help them deal with the impact of the outbreak.
• Business can use the Scottish Enterprise business support finderto find out what is available to them.

The Welsh government has set out a range of support measures for Welsh businesses:

• Business support package: The Welsh Government has published details of its £1.4 billion business support package to help businesses across Wales.
• Capital repayment holidays: The Welsh Government has announced the Development Bank of Wales will be offering all its business customers a three-month capital repayment holiday to help them manage the financial fallout from the virus.
• Economic Resilience Fund: The £500m fund will support Welsh firms of all sizes, including social enterprises, with a focus on those which have not already benefited from coronavirus grants.

Those in Northern Ireland whose salon has a rateable value below £51,000 but over £15,000 can apply for a one-off cash grant of up to £25,000 by contacting their local authority. Those businesses who are able to receive the small business rates relief and fall under that £15,000 limit are eligible to receive a one-off grant of £10,000. More information on these grants can be found here.