Wella professionals launches coronavirus financial guide for freelance hairstylists

If you’re a freelance hairdresser or barber, you’ll most likely have many questions about how to navigate your business during coronavirus – especially around the financial support available for freelancers. Wella Professionals has released a new financial guide for freelance hairstylists during coronavirus, providing a summary of the Government’s support as well as financial advice for those who are self-employed in the barbering and hairdressing industries.

Wella Professionals Coronavirus Guide for Freelancers:

Practical advice

As with any financial information, you should seek advice from your accountant if you have one, or a registered financial expert to find out exactly what you may be entitled to. Firstly, it’s important to understand what ‘self-employed’ or ‘freelance’ means in the eyes of HMRC as this will greatly determine what schemes you can benefit from. If you are self-employed and pay your own tax through Self Assessment, you are what’s classed as a sole trader. This is not the same as being a director of your own Limited Company. Directors of their own Limited Companies are in fact employed by their Limited Company. Therefore, directors will not qualify for the scheme that has been set up for the self-employed.

Financial support for freelancers during coronavirus

There is a cash grant available to self-employed hairdressers. Here is the overview of the Government’s new Self-Employed Income Support Scheme, announced on 26/3/20.

• A direct cash grant of 80% of your profits, up to £2,500 per month, will be available.
• At the time of producing this document the funds are said to be available as of June but will be backdated to March
• Grants will last for at least 3 months
• Those eligible will receive a cash grant worth 80% of their average monthly trading profit over the last three years. This covers 95% of people who receive the majority of their income from self-employment
•  The scheme will be open to those with a trading profit of less than £50,000 in 2018-2019 or an average trading profit of less than £50,000 from 2016-2017, 2017-2018 and 2018-2019.
• To qualify, more than half of your income in these periods must come from self-employment
• To apply for this grant, further information and details of the scheme will be shared shortly by HMRC

You can sign up for email alerts to notify you when the scheme is active.

• This scheme also applies to members of partnerships
• Payments will be paid in one block, in June. However, if you will struggle financially before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus. This includes more generous universal credit and business continuity loans if you have a business bank account.
• A valuable resource for any self-employed hairdressers is the IPSE – The Association for Independent Professionals and the Self Employed. This has all the latest information on how the Corona Virus will specifically impact the self-employed and is well worth checking out.

What if I’m struggling to pay my tax?

The Government website says if you cannot pay because of coronavirus (COVID-19) you may be able to delay (defer) some tax payments without paying a penalty. You can:

• delay VAT payments due before 30 June 2020 until 31 March 2021
•  delay your Self Assessment payment on account due in July 2020 until 31 January 2021

Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.

What if I can’t pay my Self Assessment tax bill?

• If you owe less than £10,000 you might be able to arrange to pay in instalments online
• You can delay making your second Self Assessment payment on account, due in July 2020. If you choose to delay, you’ll have until 31 January 2021 to pay it
• Call the Self Assessment helpline if you’ve missed your payment date or you cannot use the online service. You do not need to contact HMRC if you have set up a payment plan online

Self Assessment Payment Helpline Telephone: 0300 200 3822 Monday to Friday, 8am to 4pm

What if I can’t pay other taxes?

If you’ve received a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter. Call the Payment Support Service if you have not received a bill or letter. You can call the Payment Support Service on 0300 200 3835 Monday to Friday, 8am to 4pm You can find more information on difficulties paying HMRC here.

What about Universal Credit support?

Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income or out of work. Find out more about self-employment and universal credit on the Government’s website. There is also a Universal Credit hotline on 0800 328 5644. Monday to Friday 8am to 6pm, and you can find more information on how to apply for Universal Credit here.

Where can I go for support?

Your local council is a sensible first step. In addition, there are Government support helplines set up which we would urge you to contact for more specific information. Government Business Support This is an excellent source set up by the Government that pulls all the business advice together on one site. Income Support You can find a comprehensive guide to additional help for self-employed here, including the Income Support that is available Business Support Helpline (England) Telephone: 0300 456 3565 Monday to Friday, 9am to 6pm Invest Northern Ireland Telephone: 0800 181 4422 Monday to Friday, 8:30am to 5pm Find Business Support Scotland Telephone: 0300 303 0660 Textphone: 0800 023 2071 Monday to Friday, 8:30am to 5:30pm Business Wales Helpline Telephone: 0300 060 3000 Monday to Friday, 8:30am to 5:30pm Another valuable resource is the Federation of Small Businesses. This has advice for both small businesses and self-employed. If you’re not a member, there’s still intensive detailed advice on how to deal with the Coronavirus pandemic. There is an incredible bank of free information available that will answer every question you may have about your business concerns in this period.

Positive Initiatives for you to try during lockdown  

While you can’t work as normal, Wella Professionals recommends the below ideas to focus on during this time at home:

• Update your website or build a new one. There are multiple online resources available to build a free website.
• Build your social media platforms. Check out platforms like Hootsuite.com to help you schedule your social media, and there’s bundles of free education there too for anyone who needs a crash course in getting social.
• Implement a remote service for your clients. If you have a database with your clients’ details, think about the kind of information they might like to receive. Trends, haircare updates to maintain great hair at home, tips and techniques for disguising their roots when they can’t get to see you. Use this as an opportunity to build a community with your clients whilst offering practical advice.
• Try using websites such as Canva to create stylish newsletters or marketing material and use the images available on Wella Marketing if you don’t have any imagery of your own.
• There is still time to enter the Wella TrendVision Awards, which will be conducted virtually. Find out how you can enter here.