Video: NHBF answer beauty businesses burning questions about coronavirus financial help

Published 30th Mar 2020 by PB Admin
Video: NHBF answer beauty businesses burning questions about coronavirus financial help

Hilary Hall, chief executive of the National Hair and Beauty Federation (NHBF), and Tina Beaumont-Goddard, NHBF membership director, explained in-depth the financial support beauty salons across the country can receive during the coronavirus pandemic in our exclusive PB Virtual Beauty Week webinar.

These are nine of the key questions from worried beauty business owners they answered during the session.

What category do salons fit under when receiving financial support?

Salons come under the category of retail, meaning they won’t have to pay any business rates for this coming year, advises Hall. This also means they are applicable for the retail, hospitality and leisure business grant, meaning, if you have a rateable value between £15,000 and £51,000 then you are eligible for a cash grant of £25,000. If you make less than £15,000, you are eligible for a grant of £10,000.

Will I be forced out of my premises for missing a rental payment?

No, you will not be forced out due to the coronavirus for the next three months. There will also be a three month mortgage holiday available for people in financial difficulty due to the virus, and interest-free business interruption loans available from banks, although these will have to be repaid. Hall reccomends 40 reputable lenders on the NHBF blog.

When do I have to pay VAT for?

The next quarter’s VAT payment will be delayed until June 2020, and the entire VAT bill is expected to be paid by the end of the financial year (April 2021).

What support can I receive if I am self-employed?

There’s the Government’s Self-Employed Income Support Scheme. A taxable grant of 80% of your average monthly profits based on the past three years tax returns you have filed, with the maximum payable as £2,500 per month. This is a three-month scheme, and it will be reviewed to see if it needs extending after this time.

To be eligible, you must have filed a tax return for 2018/2019, Hall explains. If you haven’t filed your tax return due January this year, then you have until April 23 to do so. You must also have a trading profit of less than £50,000 and be making most of your income from being self-employed. If you pay yourself through dividends through your company then you are not covered by the scheme.

Do I need to reach out to the local authorities to receive this support for the self-employed?

No, they will contact you. Although, Hall advises that there are plenty of reports suggesting that they are offering differing advice, so it is worth researching yourself also. HMRC will also reach out to self-employed people who have filled in returns previously, with payment being made in a single, lump sum.

What support can I receive if I am an employer?

The Coronavirus Job Protection Scheme is to help the payment of employees who would be otherwise laid off. These staff are classed as furlough workers, and will have 80% of their gross regular wage, or £2,500 if this is lower, covered by grants from HMRC, expected to be up-and-running by the end of April.

This does not include bonuses and commissions, Beaumont-Goddard advises. Employers can decide whether they want to top up the remaining 20% but they do not have to. Employees who are eligible include full-time employees, part-time employees, employees on agency contracts, and employees on flexible or zero-hour contracts.”

What say do my employees have in becoming furloughed?

Beaumont-Goddard suggests that it is worth seeking legal advice if staff do not agree with becoming furloughed. Legally, redundancies should be a last resort option and alternatives must be considered. If a contract states that you can lay off staff, then you are permitted to furlough your employees without their permission. If it does not, then it requires their agreement. Any verbal or written exchange should be noted, Beaumont-Godard advises, as this is evidence which may be required by the HMRC.

While furloughed, employees’ contracts remain the same and they are still permitted to rights such as statutory sick pay and maternity rights. If employees have taken, or are due to take, annual leave, they should be paid normal holiday pay. However, employees are technically not “working” when furloughed.

Where should I seek legal advice?

Legal advice is available 24/7 for NHBF members. Elsewhere, it is worth trying with a solicitor or an accountant body.

PB Admin

PB Admin

Published 30th Mar 2020

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