We know that these are tough times and we want to try and help point you guys in the right direction for some support. We aren't accountants or tax or finance specialists we are software people but have a wealth of experience running businesses in your sector too and we understand some of the jargon and we do care that you come out on top on the other side of this, so hopefully you find some of this info useful.
If you're employed by a company then we would suggest to ask your employer to implement whats called a Furlough process. This is where you have an unpaid planned "holiday" period agreed between you and your employer, and agree a remuneration (payment) plan for your salary.
If you're a member of staff, then you can forward this to your employer and they can click the link below to show them where to claim for employees alternatively let your staff have a copy of the email to inform them:
The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. The scheme is likely to be up and running by the end of April.
Employers can use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme anytime during this period.
So first of all, this is NOT applicable to owner-managers of Salons who take a salary and declare a dividend. If you work as a sole trader so to speak and declare a self-assessment as self-employed then the good news is that the SEISS scheme can help you. This scheme will allow you to claim a taxable grant (not a loan) worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
It seems the Income Tax or commonly known as Self-assessment "Payment on Account" has also been deferred so that should ease the pain a little in the summer as its usually July that needs paid. Now not due until next year the usual self-assessment payment date of 31st Jan 2021. Like everything this isn't a reduction or cancellation of payment, you'll still need to pay it, so if you can then maybe you should, it's entirely up to you. You don't need to apply for this, its automatic, so may save you some time.
The introduction of a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year, you don't need to apply by the looks of it.
Retail, hospitality and leisure businesses will get 100% rates relief. To get this relief, a property has to be occupied. Properties that have closed temporarily due to the government's COVID-19 advice will be treated as occupied.
Defer your VAT for the next quarter maybe?
If you are self employed and declare Value Added Tax then it looks like there is some support in the system for deferring your VAT however we would still advise you to submit the return online using MTD - its something we want to offer in our future software iterations is VAT Support so you don't have to open your accounting packages separately.
Statutory Sick Pay relief package for small and medium sized business owners:
So to self-isolate in March/April you're entitled to 2 weeks SSP (approx £94 a week) which normally would be deducted from your Tax payments however in this case the government will pay you this direct so its one to apply for asap as it will help get you and any business partners some direct cash. Speak to your accountant on how to apply.
Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
the HMRC Time To Pay Scheme
The scheme will be interest free for 12 months click below to go to their site:
We hope that helps some, and if we get any more info we think is useful then we will send it out.
If you have got this far and have some time then why not try our booking software as a means of dropping costs for when you reopen as its FREE and might help you get more customers and manage the existing ones better.
Founder and CEO - The Beauty App