Hj voicenotes: jo sutherland asks government to give more assistance to hairdressers

Jo Sutherland is a salon owner, hairdresser and qualified barrister and is calling on the Government to give more assistance to the hairdressing industry in these uncertain times.

“I own a small hairdressing business in East Finchley. We have been in business for 13 years and I have several employees, I pay the London living wage as a starting salary plus commission and I contribute to National Insurance, pension payments and my business pays VAT. I do not employ on zero hour contracts and I provide training for my staff. Despite being an upstanding hairdressing business, I am increasingly concerned and worried about my businesses future in the short to medium term. Like many other hairdressing businesses I am now dealing with a number of challenges. Firstly, our first tax bill is particularly high because of two factors. The first being that the Covid-19 grants we received and needed to survive were taxable (personally, I think this reasonable). Secondly, as tax wasn’t required in the year we were closed, we now have to pay half of the tax bill on account before we have earned it – these factors both contribute to the first tax bill due being steep. I have recently written a letter to my local MP Mike Freer, and he has forwarded it to the Treasury. In my letter I outline that cash flow is essential for small businesses. And that is very much a problem at the moment. The Coronavirus was devastating for businesses like mine, as we were forced to shut down and most small businesses took out Covid-19 loans. Of course they are being (rightly) paid back, but there are other factors that are threatening our bottom line. VAT is 20% which is just too high, it also punishes the very companies that fully declare their income. Giving those that don’t (and reportedly there are many in my industry) an unfair advantage. All this comes at a time when the cost of living is increasing and footfall is receding. As a small business owner, who contributes to the community, I would find it unbelievably helpful if the Treasury could take three actions. The first would be to remove the need for micro businesses to pay tax on account for two years. The second would be to lower VAT for micro industries in my sector ( I don’t believe this would increase inflation). And finally, extend energy price caps for at least a year. I don't want further grants and loans, just the opportunity to continue paying back everything owed and adjusting my business to remain solvent within a challenging market.” Check out another HJ Voicenotes column here from Drew Scott on how local salons are supporting the industry.