£18,000 grants announced for hair & beauty industry

Beauty and hair businesses in England affected by COVID-19 lockdown restrictions, may qualify to claim a £18,000 Restart Grant from April.

Restart Grants will be administered by local authorities, with grant amounts calculated on a business' rateable value. The scheme replaces Local Restrictions Support Grants.

In today's (3rd March 2021) Spring Budget, UK Chancellor of the Exchequer, Rishi Sunak, also announced a new Recovery Loan Scheme, to replace the Bounce Back Loan scheme, with businesses of any size able to borrow from £25,000 up to £10 million.

To encourage the recruitment of Apprentices, the incentive payment for employers who hire apprentices of any age will rise from £1,500 to £3,000.

For the self employed, the Self-Employment Income Support Scheme will be extended until September 2021, with a fourth grant covering February to April, and a fifth from May onwards. During February to April, qualifying self employed will be able to claim up to 80% of three months of their average trading profits. 

The Self-Employment Income Support Scheme Grant Extension is not available to self-employed people who are company directors of limited companies, but is available to sole traders and freelancers. 

Newly self employed, who were excluded from previous Self-Employment Income Support Scheme grants, and who have returned their 2019/20 tax return before midnight on 2nd March 2021, will now qualify for the fourth and fifth grants.

For the employed, the Job Retention Scheme, or furlough, will be extended until the end of September 2021, with employers able to claim 80% of an employees' salary for hours not worked from HMRC. From July employers will be expected to make a 10% contribution, whilst in August and September a 20% employer contribution will be required. 

The National Living Wage will also be increased from April 2021, to £8.91 per hour. 

In his statement to House, Rishi Sunak also announced that Corporation Tax, paid upon a business' profits, will increase from April 2023 to 25% for the most profitable businesses. Those generating less than £50,000 in profits will benefit from the Small Profits Rate of 19% (the same as the current figure), with those with annual profits over £50,000 charged a tapered rate.