Nhbf shares the financial help available to hair salons during lockdown 2.0
Published
22nd Nov 2020
by laurahusband
The NHBF has been pushing the UK Government for more financial help as many hair salons and barbershops are still being affected by lockdowns and trading at well below normal levels and the hair and beauty industry continues to face challenging times.
A new raft of financial measures will kick in for the winter, but the NHBF says the UK Government has not gone far enough. “For example, we fail to understand why the hair and beauty sector has not benefited in the same way as hospitality and leisure from VAT being cut to 5% until the end of March,” says NHBF finance director Kishon Mather.
“A VAT reduction to 5% would provide a much-needed boost for our industry, particularly as salons and barbershops have few costs on which they can claim VAT back.”
He adds: “We will continue to lobby the Government at the highest levels. Nevertheless, it’s vital to understand exactly what financial help is available in the coming months.”
You can find out more about the NHBF’s campaigning work here: nhbf.co.uk/campaigns.
NHBF explains the financial help available to hair salons during lockdown 2.0?
Furlough scheme extension
“The furlough scheme has been extended to 31 March 2021,” explains Kishon. “You can bring furloughed employees back to work on a part-time basis or furlough them full-time. Employers must pay National Insurance and employer pension contributions. Employees will receive 80% of their salary for hours not worked up to a maximum of £2,500 a month.” The Job Support Scheme previously announced has now been postponed.Self-employment support scheme extension
The government is offering two grants, each available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021, says Kishon.
“Self-employed chair, space and room renters can claim a grant of 80% of their average trading profits covering the three-month period November 2020 to January 2021, up to a maximum of £7,500 (the maximum previously announced was £5,160).”
The amount of the second three-month grant to cover February 2021 to April 2021 will be decided at a later date. Tax and National Insurance must be paid on the grants.
