INDUSTRY NEWS

Here’s HJ’s round-up of the industry support currently available for hairdressers to help you navigate these difficult times...

The Hair & Beauty Charity provides financial support for those in the hair and beauty industry who have fallen on hard times, whether it be illness, bereavement or financial hardship. You can apply for support or donate to the charity on its official website.

HJ has launched Upskills – a series of lives each week designed to help you boost your business, digital and creative skills. View the weekly schedule at hji.co.uk and keep your eyes peeled on HJ’s social channels for updates. 

The company, which includes Goldwell, KMS and Oribe, has a Salon Recovery Guide to help salons prepare for reopening. It is focused on helping salons recover and rebuild as they emerge from the COVID-19 crisis. The initiative is comprised of three pillars of carefully constructed support campaigns (Stronger Together, Creativity Never Stops and KAO Salon Family) designed to address the unique challenges facing the industry and its professionals as they look to reopen.

L’Oréal Professional Products, which includes L’Oréal Professionnel, Kérastase, Redken, Shu Uemura, Pureology, Matrix, Biolage and Pulp Riot, has updated its Salon Support Guides for UK and ROI. It has also updated its UK Salon Toolkit. Additions to the guides include UK key consumer insights, communications advice, how clients can support salons, social media tips, virtual consultation tips and ideas for virtual shopping.

The NHBF has a wealth of advice – financial and otherwise on its website and via its social channels that are continually updated with guides and information for salons and barbershops. The organisation is currently seeking extra financial support from the UK Government to help those businesses struggling at the moment and to aid a fast recovery once lockdown is lifted. Visit nhbf.co.uk

Revlon Professional’s Online Academy is providing education for its partner salons. The sessions include: Nutri Color Filters (3 Feb 2pm-4pm), Greys Away (8 Feb 10am-12pm), Intense Blondes (10 Feb 2pm-4pm), Prep. Style. Finish. Style Essentials (15 Feb 10am-12pm), Bond and Blonde (16 Feb 2pm-4pm), Totally Toned (22 Feb 2pm-4pm), Restoring Colour (Light to Dark) (24 Feb 2pm-4pm) and Removing Colour (1 March 10am-12pm). For more information email nicky.finnis@revlon.com and karen.thomas@revlon.com

Schwarzkopf Professional is extending its Digital Vouchers initiative, allowing salons to offer personalised vouchers for clients to purchase now for use on in-salon services once the lockdown is lifted. It has also extended its contactless delivery for retailing in the UK, helping to support salons by allowing clients to order professional products through their local salon. Visit helpyoursalon.co.uk

Wella Professionals educators are hosting digital education classes via Zoom. The courses include: Training Focus, aimed at college apprentices, and Digital Studio Discovers for product knowledge on specific Wella Professionals colour or care products. Both sessions are two hours each and free of charge.

You can also tune in for Midday Micro-Classes on Wella Professionals’ Instagram page (@WellaHairUKI) every day. Topics include Hacks for Lightening and Toning and Freehand Balayage. Each session has inspiration to support you throughout this period. 

The Vish global community has diverted a staggering 30 million grams of colour from being poured down the sink since the innovative colour management app was launched. This has saved member salons and colourists over £1.3 million.

The data released this month by Vish, which launched in April 2018, compared the amount of product used for identical services before and after installing Vish technology. It reveals a massive reduction in quantities dispensed and in the waste left over.

“In the past two years, those using the Vish app have together cut colour use by half a million tubes,” said co-founder and CEO Joshua Howard. He added: “That’s the equivalent weight of five African elephants or 15 Tesla Model Y cars. Cutting overdispensing is generating a 25% to 40% drop in costs for our salons. Ultimately, it means more profit for the business and greater sustainability for our planet.”

Here’s HJ’s lowdown on the financial help and support currently available. HJ has also spoken exclusively to salon consultant Ryan Fox from umbrellaconsulting.co.uk for his expert opinion on the financial help that is available to hair businesses during the current UK lockdown.

1. NEW 2021 GRANTS

The one-off top-up grants will be granted to closed businesses on top of existing grants with a maximum of £9,000 on offer. The cash is provided on a per-property basis to support businesses through the latest restrictions. Any business which is legally required to close and cannot operate effectively remotely is eligible for the grant. The business support is a devolved policy and therefore the responsibility of each devolved administration, which will receive additional funding. The grants on offer are as follows:

• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000. 

Ryan says: “These are new one-off ‘top-up’ grants of up to £9,000 on top of existing grants, which doesn’t sound too bad, but most salons will only get the lower amounts of £4,000 or £6,000 because of their rateable value being below £15,000 or £51,000 respectively.”

2. LOCAL RESTRICTED TRADING GRANTS FROM NOVEMBER 2020 ENGLAND LOCKDOWN

 Businesses required to close in England due to local or national restrictions back in November 2020 were eligible for the following:

• For properties with a rateable value of £15,000 or under, grants to be £1,334 per month, or £667 per two weeks
• For properties with a rateable value of between £15,000-£51,000 grants to be £2,000 per month, or £1,000 per two weeks
• For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per two weeks. Individual local authority websites should have information on how to apply for business grants.

Ryan says: “Many salons are still waiting for existing grants from the November lockdown which they should have applied for from their local authorities of between £1,000 and £3,000 and grants of up to £2,100 once they were opened again depending on their rateable value.” However, he adds: “Once they kick in these should hopefully continue in addition to the new one-off grants.”

3. DISCRETIONARY GRANTS FROM LOCAL AUTHORITIES

There are some discretionary grants available but they are difficult to apply for and they are patchy as each local authority is making their own decisions. Check your local authority’s website to see what could be available for your business.

Ryan says: “For many salon owners the grants listed so far are not enough to pay the bills, even when closed, particularly with many landlords offering little or no help and many report that local authorities are being slow in providing these to businesses.”

4. FURLOUGH SCHEME EXTENDED UNTIL END OF APRIL 2021

On 17 December 2020, the UK chancellor confirmed the UK Government’s Job Retention or Furlough Scheme would be extended until the end of April 2021. This will cover 80% of wages with businesses only having to pay National Insurance and pension contributions.

Ryan says: “This is extremely helpful for salon owners with employees, but they still have to cover National Insurance contributions and Pension contributions for the hours not worked.”

5. SELF-EMPLOYED INCOME SUPPORT SCHEME (SEISS) FOR ENGLAND, SCOTLAND, WALES AND NORTHERN IRELAND

The UK Government offered two Self-Employed Income Support Scheme (SEISS) grants due to the COVID-19 UK lockdown which are available to the hairdressing industry. Each grant is available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021. The grants will be paid in two lump-sum instalments each covering a three-month period. The first grant covers the three-month period from 1 November 2020 until 31 January 2021.

The Government will provide a taxable grant covering 80% of tax payer’s average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. The grants are taxable income and also subject to National Insurance contributions.

The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

Ryan says: “This is very helpful for salon owners who are self-employed and their self-employed workers.”

6. BUSINESS INTERRUPTION LOAN SCHEME OPEN UNTIL MARCH 2021

Applications for the Business Interruption Loan Scheme, which provides loans of up to £5 million, with no interest due for 12 months has been extended until 31 March 2021. The Government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

7. BOUNCE BACK LOAN SCHEME OPEN UNTIL MARCH 2021

Applications for the Bounce Back Loan, which helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover is open until 31 March 2021. The maximum loan available is £50,000. The Government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

Ryan says: “Applications for business support loans have been extended until March 2021 and you are able to top up existing Bounce Back and Business Interruption Loans which sounded great when announced.” However he adds: “Having tried to apply on behalf of my clients I found if you have already taken 25% of your turnover, you can’t get any more. As this is now based on current turnover rather than Pre-COVID-19 turnover, it’s very unlikely that you will get any more finance this way.”

8. BUSINESS RATE HOLIDAY UNTIL MARCH 2021

Businesses in the retail, hospitality and leisure sectors in England, which includes the hairdressing industry, do not have to pay business rates for the 2020 to 2021 tax year. Businesses do not need to take any action as the local council will apply the discount automatically.

Ryan says: “There have been calls from business groups and industry associations to extend the current 100% Business Rate Holiday for a further year to March 2022. Let’s hope this is also announced as otherwise many salons will have yet another bill to pay again from April 2021.”

9. VAT DEFERRED PAYMENTS CAN BE PAID IN FULL BY 31 MARCH 2021

 If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
• Pay the deferred VAT in full on or before 31 March 2021
• Opt in to the VAT deferral new payment scheme when it opens in early 2021 (date TBC)
• Contact HMRC if you need more help to pay. 

To use the VAT Deferred Payments Scheme you must:
• Still have deferred VAT to pay
• Be up-to-date with your VAT returns
• Opt in before the end of March 2021
• Pay the first instalment before the end of March 2021
• Be able to pay the deferred VAT by Direct Debit.

Ryan says: “Businesses who deferred their VAT during the initial lockdown quarter can spread the payments over 11 months from March 2021.”

10. ALTERNATIVE FUNDING OPTIONS

Ryan says: “Many salons will now be forced into ‘alternative funding’ options just to keep going which are usually at very high interest rates.”

CONCLUSION ON FINANCIAL SUPPORT AVAILABLE

Ryan says: “Whilst there is some welcome new support, much of it is recycled announcements of existing help and I’m afraid the support won’t go far enough for many salons.” He adds: “I’m now expecting many salons who don’t have an alternative vision to really struggle during this next phase unless the UK Government announces further help, particularly larger grants, loan extensions or mandatory help from landlords on rent-free periods or reductions.”

Please note all information is subject to change so please go to hji.co.uk or gov.uk/guidance for the most up-to-date information.

Janet Maitland, the managing director and salon group owner of Janet Maitland Hair Excellence and Schwarzkopf Professional’s Shaping Futures UK ambassador has sadly passed away. She was loved by everyone who had the pleasure of meeting her and it comes as sad news for us all. Janet was named HJ’s Business Director of the Year at HJ’s 2018 British Hairdressing Business Awards and used her win to promote the amazing volunteer work she carried out for Schwarzkopf Professional Shaping Futures as well as the importance of caring for every member of her salon team.

HJ’s editor Laura Husband said: “Our thoughts are with her husband Peter, the rest of her family, friends and all of those who had the pleasure of working with her over the years. I remember when I asked her what she had learned during her career so far and she said: ‘To be happy and enjoy every day,’ which says it all.”

Janet’s salon team have created a fundraising account for Janet. You can contribute by going to paypal.me/jmfundraising.

The UK Government will now recognise personal care as a specific sector. This means hair, beauty and spa will no longer be grouped with retail, hospitality or any other sector when the UK Government makes decisions in future.

Led by the Hair & Barber Council, British Beauty Council, the National Hair & Beauty Federation (NHBF), UK Spa Association and British Association of Beauty Therapy and Cosmetology (BABTAC), the campaign has led to the Government granting a newly formed, sector-specific team dedicated to supporting personal care.

All of these organisations worked with the Department for Business, Energy & Industrial Strategy (BEIS) to overcome the challenges of the past year and to highlight the size and scope of the personal care sector.

Keith Conniford, registrar and CEO at The Hair and Barber Council, said: “This will put our sector on an equal footing with the other sectors that BEIS looks after and hopefully will ensure a more sustainable future for our industry in terms of Government support. We have initiated contact with the new department and will be meeting with them shortly to introduce our industry whilst discussing what ongoing support is needed.”

The British Beauty Council described it as a major milestone for the UK hair and beauty industry with positive implications and said it will pave the way for future financial support.

NHBF chief executive Richard Lambert added: “We are delighted our sector is getting the recognition it deserves. Our work now continues to secure urgent and vital support for hair and beauty as lockdowns and restrictions continue, and we look forward to positive discussions with BEIS to secure the best possible deal for the personal care industry.”

The Supreme Court has ruled small businesses, including hair salons, will receive payments from their insurers for business interruption insurance policies.

The first lockdown forced many businesses to close. However many policyholders found their insurers refused to make payments arguing ‘specialist policies’ were required for the circumstances. Salon owners were left out of pocket, having to foot the cost of lost earnings and pay for overheads.

The Financial Conduct Authority (FCA) brought the case to the Supreme Court with eight insurers agreeing to test policy wordings on what would be considered a valid claim. The court favoured small businesses receiving payments from the policies.

Extensions brand Remi Cachet is welcoming six extensionists to its exclusive group of Super Stylists for the year ahead. The scheme is by invitation only. The new stylists are:
• Alex Ferris
• Georgia Tillmon
• Lora Stanhope
• Louise Baldwin
• Sarah Lamite
• Shannon Donald

Victoria Lynch, Remi Cachet’s founder said: “At the heart of our criteria is expert application and we review and approve a stylist for each application method to keep the highest standards.”

It’s with great sadness that we announce Jamie Farrar, PPS UK Schwarzkopf Professional educator and trainer has sadly passed away. A much-loved fi gure at Schwarzkopf Professional and a talented educator who worked closely with Schwarzkopf Professional’s Young Artistic Team (YAT), Jamie’s death comes as a great shock to the industry and his colleagues.

“To say Jamie will be missed is the biggest of understatements,” says Kay Brady, national PPS manager. “We are sad beyond words and our hearts go out to Colin his partner and all those who loved him. It was an honour to know Jamie and count him as a friend. Words cannot describe the sadness we all feel at the loss of such a kind, giving and generous talent.” HJ’s thoughts are with his friends, family and colleagues at this diffi cult time.