We are doing all we can to support our Members during this difficult time. Please bear with us when calling our membership team or legal helpline as we are currently inundated with enquiries from Members. Please try calling back, but in the meantime the following FAQs may answer your questions.

Plans for recovery and easing lockdown

England, Wales, Northern Ireland and Scotland have published their plans for recovery and easing lockdown. Find out more:

England

Wales

Northern Ireland

Scotland

Don't fall for fraudsters and scammers

Fraudsters and scammers will be trying to take advantage of those who are anxiously waiting for financial support to come through. Be very wary if anyone contacts you via phone, email, post or text claiming to be from the government, HMRC or any other body such as a local council or bank. In addition, fraudsters have been registering websites with names such as 'Coronavirus Compensation Ltd' - use only the official gov.uk website.

The government has published guidelines to help you avoid scammers and fraudsters during the coronavirus crisis. Do take the time to read it. It explains what correspondence you can expect to receive and how to tell if an email or text is fraudulent.

Check for updates

Check back often as this is a fast-moving situation and we will be updating these FAQs as things change.  Also - see our:

Find specific government information for:

Visit the government's coronavirus financial support page.

Read the latest advice from the NHS.

FAQs

What is happening about reopening?  

Salons and barbershops have been allowed to reopen across the country. Different guidelines apply across the four nations. Find out more.

Do I have to ask clients for their contact details?

In England, the law says you must keep a temporary record of your clients and visitors for 21 days and assist NHS ‘Test and Trace’ with requests for contact information if needed. The aim is to help avoid a second spike as lockdown measures are eased.

You must register for an official NHS QR code and display the official NHS QR poster from 24 September 2020.

The NHS COVID-19 app has a feature that allows users to quickly and easily ‘check in’ to your venue by scanning the code. The information stays on the user’s phone. In England, you do not have to ask people who choose to ‘check in’ using the official NHS QR code to provide their contact details. If there is an outbreak associated with a venue, a message will be sent to the relevant app users with the necessary public health advice. Find out more about this on the government website.

Read the guidance here.

When collecting and storing data you will need to comply with strict data protection regulations. Find out more. 

The ICO (Information Commissioner’s Office) has published guidance on how to protect client data when collecting contact details for the NHS ‘Test and Trace’ service. It sets out five simple steps to follow. Find out more.

What information do I need to record?

You will need to make a note of each client’s:

  • Name.
  • Phone number.
  • Time of arrival.
  • Time they left, where possible.
  • Which team member served them.

 You also need to record the dates and times that your team members are at work.

 The government has confirmed:

  • You are not required to check the accuracy of the contact information that clients give you or ask to see their ID.
  • You do not have to collect contact details from people who are only on your site for short time – for example, delivery people.
  • Records can be digital or on paper.
  • You are not required to delete the data immediately after 21 days – it can be deleted when you normally delete unwanted data.

Is this compulsory?

In England, this is required by law.

Similar rules apply in all four nations. Find out more.

Can I report other businesses that are not following safety guidelines?

If you have concerns or wish to report a business that is failing to implement the recommended safety standards for limiting the risk of COVID-19, there is an HSE helpline (0300 003 1647) and an online form which can be used to report non-compliance.

Salons and barbershops can also be reported to their local authority. You can find the relevant local council here.

Can I lay off staff ?  

Before laying off staff:

The government is trying to prevent employers laying off staff at this difficult time and has announced the following financial help:

Employment and pay measures

The government has published a step-by-step guide to claiming for your employees’ wages through the coronavirus job retention scheme. This scheme will finish at the end of October.

National Minimum Wage and National Living Wage

The government has confirmed that:

  • Employees are entitled to the National Minimum Wage (NMW) when they are working.
  • Furloughed employees are not working and so are not eligible for the National Minimum Wage during this time.
  • The scheme will make up a percentage of wages for all employees including those on the NMW. This amount could be less than the NMW.

New Job Support Scheme 

A new Job Support Scheme will be introduced from 1 November 2020 to protect viable jobs in businesses that are facing lower demand over the winter months due to coronavirus. Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. 

Employers will pay the wages of staff for the hours they work. However, for the hours not worked, the government and the employer will each pay one third of their equivalent salary. Employees must be working at least 33% of their usual hours. The level of grant will be calculated based on the employee’s usual salary, capped at £697.92 per month. 

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme. Further guidance about the scheme will be published by the government shortly. 

Read the NHBF’s response to the new scheme

New Job Retention Bonus

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.

Citizens Advice has provided the following links that may be useful for your employees if they are struggling financially:

Read our government job retention scheme FAQs.

Find out more about the government's job retention scheme.

NHBF Members have access to a free 24/7 legal helpline. 

I made my staff redundant before we were told to close, can I re-employ them? 

Employees who were employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for the employer after that and prior to 19 March 2020, can qualify for the job retention scheme if the employer re-employs them and puts them on furlough.

Our legal team suggests that a conditional offer of re-engagement be made to the dismissed employee confirming that you will re-employ them on the understanding they will be furloughed. You can then apply for financial help under the job retention scheme.

The offer of re-employment should also confirm that if the application to the scheme is rejected for any reason you are under no obligation to pay the employee nor provide them with work.

Always seek legal advice about this issue.

See our coronavirus job retention scheme FAQs.

Can I tell my employees to become self-employed chair/space/room renters? 

You cannot force your employees to become self-employed or make them feel as if they have no option but to become self-employed. 

Do existing chair/space/room renters still have to pay rent?

If you use the NHBF chair/space/room renting agreements, the following applies: 

The following information was updated on 23 June 2020:  

This information specifically refers to the legal effect of the 'force majeure' clause in the NHBF chair renting/room renting agreements.   

For the first three months of lockdown the following applied: 

  • The contract is, in effect, suspended for up to three months.
  • If the chair renter/space/room renter has no income because the salon/ barbershop is closed, it is possible that they may struggle to pay the rent to the salon/barbershop, and are therefore in breach of contract.
  • Likewise, the salon owner/barbershop is also potentially in breach of contract by not allowing access to the premises.
  • Both parties may try to accuse the other of being in breach – however, the force majeure clause then kicks in and stops each party being in breach and being able to sue during any period of suspension.
  • On the face of it, however, the rent due during the suspension period would continue to accrue and would still be due when the three months ends and thereafter.
  • The chair/space/room renter and salon/barbershop owner should, therefore, try to come to an agreement as to how this can be repaid when both are trading again. It is advisable to be fair and flexible – it may be very difficult for the chair/space/room renter to pay all the rent back in one lump sum, and presumably, in most cases, both parties will want the relationship to continue and be successful - salons and barbershops will be very busy when they re-open, so it's in everyone's best interest to negotiate. Regard must therefore be had to the fact that when things get back to normal, the salon owner/barber shop is likely to want the agreement to continue and not be brought to an end by the chair/space/room renter giving notice to end the contract.  

Now that the contract has been suspended for three months the following applies to chair rental agreements:

  • Either party can give seven days’ notice to end the contract.
  • If the chair renter does not pay the rent they owe, the salon/barbershop owner would need to take action in the civil courts to get the unpaid rent back if they deem it expedient to do so. 

Please note: tenancy agreements 

If you have any tenancy agreements in place with space or room renters you will not be able to force your tenants out or use ‘Commercial Rent Arrears Recovery’ until 30 September. Find out more about this on the government website. 

If you do not use NHBF contracts, you will need to take legal advice.

What about my apprentices?

Follow the links below to find out what plans are being put in place to support apprentices and their employers.

Some employers have been asking if their hair/beauty apprentices can take the practical observation element of the end point assessment online. 

However, it has been agreed by the end point assessment organisations that this cannot be done online and must wait until current social distancing restrictions are lifted. This will ensure the apprentice can safely progress to providing services to the public.

England

The Education and Skills Funding Agency (ESFA) is taking steps to ensure that, wherever possible, apprentices can continue and complete their apprenticeship. ESFA has published a list of detailed Q&As that provide guidance about what to do and measures the government is putting in place to help employers and apprentices in England. 

The government has just updated its guidance for apprentices, employers, training providers and assessment organisations. The guidance applies to England. It includes information on training and assessment in line with safer working guidelines, calculating wages for furloughed apprentices, support for redundant apprentices and FAQs. Find out more.

Scotland

Skills Development Scotland has announced that its absolute priority is to support individuals at this time. Read its FAQs on this topic.

Wales

The Welsh government is encouraging learning providers and employers to support apprentices to continue their learning where possible. Find out more.

Northern Ireland

We do not yet have specific information regarding apprenticeships and the coronavirus in Northern Ireland. You can try emailing your questions to: apprenticeships@economy-ni.gov.uk

All six further education colleges in Northern Ireland have suspended face-to-face teaching activities until further notice. Follow the links below for more information:

What has the government announced about annual leave?

Employees will not lose any annual leave they are unable to take during the leave year because of the coronavirus outbreak.

The new regulations announced by the government on 27 March 2020 will allow up to four weeks of unused leave (20 days for full-time staff) to be carried over into the next two  years.

In normal circumstances, very little annual leave entitlement can be carried over. Employers are obliged to ensure their employees take their statutory entitlement to annual leave in any one year.

What financial help has the government announced?

Employment and pay measures 

New Job Support Scheme 

A new Job Support Scheme will be introduced from 1 November 2020 to protect viable jobs in businesses that are facing lower demand over the winter months due to coronavirus. Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. 

Employers will pay the wages of staff for the hours they work. However, for the hours not worked, the government and the employer will each pay one third of their equivalent salary. Employees must be working at least 33% of their usual hours. The level of grant will be calculated based on the employee’s usual salary, capped at £697.92 per month. 

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme. Further guidance about the scheme will be published by the government shortly. 

Read the NHBF’s response to the new scheme.

 

New Job Retention Bonus

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.

The government's furlough scheme will be in place until the end of October 2020. See below.

 

The furlough scheme has been extended until the end of October with some changes, including the introduction of employer contributions. Find out more.

Read government guidance on this scheme

National Minimum Wage and National Living Wage

The government has confirmed that:

  • Employees are entitled to the National Minimum Wage when they are working.
  • Furloughed employees are not working and so are not eligible for the National Minimum Wage during this time.

Citizens Advice has provided the following links that may be useful for your employees if they are struggling financially:

Read our government job retention scheme FAQs.

Find out more on the government website.

VAT payments 

On 24 September 2020, the Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.

Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.

Find out how to defer your VAT payment.

Business interruption loans 

A coronavirus business interruption loan scheme will offer interest-free loans for 12 months. Find out how to apply for one of these loans. Do remember that you will always be 100% liable to pay back any loan you take out.

Update: Coronavirus Business Interruption Loan Scheme lenders will be able to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan. 

Bounce back loans

Small businesses will be able to apply for a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor has announced. 

These loans would cover 25% of a business's turnover up to £50,000 and will be interest-free for the first 12 months. No repayments will be due during the first 12 months. 

The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. Borrowers can apply online via a short form. 

The scheme opens on 4 May 2020. Find out more.

Update: Businesses who took out a Bounce Back Loan will be given the option to repay their loan over a period of up to ten years through a new ‘Pay as You Grow’ flexible repayment system. Interest-only periods of up to six months and payment holidays will also be available to businesses. 

Temporary loan schemes extended

The government is extending four temporary loan schemes to 30 November 2020 for new applications: the Business Interruption Loan Scheme; the Coronavirus Large Business Interruption Loan Scheme; the Bounce Back Loan Scheme; and the Future Fund.

Benefits 

The benefits safety net is to be strengthened with, for example, increases in Housing Benefit, Universal Credit and Working Tax Credit.

The following has also been announced:

  • A year-long holiday from paying business rates for all businesses in retail, leisure and hospitality. This will include salons and barbershops in England.  See more information about England on the government website. (See details below for Wales, Scotland and Northern Ireland.)
  • One-off grants of £10,000-£25,000 to businesses in England. There are two schemes: the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant. The government says that your local authority will contact you about any grants you are entitled to. Local authorities will receive the funding in early April. You can read the government's guidance for local authorities about these schemes.
  • Statutory Sick Pay: Small and medium-sized businesses with under 250 employees will be able to reclaim up to two weeks of Statutory Sick Pay (SSP) that is paid for sick leave/self-isolation due to coronavirus. Employers must keep records but employees will not need to provide ‘fit’ (sick) notes. This will be backdated to 13 March inclusive. It will be paid from the first day of sickness (it is usually paid from day four). This scheme is currently being set up. In the meantime, don’t fall for fraudsters and scammers – use only the government website to make claims. Find out more.
  • Anyone not eligible to receive SSP, including those earning less than an average of £118 per week and self-employed people can claim Universal Credit online and/or contributory Employment and Support Allowance. (Please note: do NOT call the Department of Work & Pensions about your Universal Credit claim. They will call you if they need to clarify anything.)

Help was also announced for small businesses in the recent Budget

What has the Welsh government announced?

The Welsh Government has announced a package of support worth £1.4bn for small businesses to help them during the coronavirus outbreak.
 
Retail, leisure and hospitality businesses will receive 100% business rates relief for the financial year 2020/21. ('Hospitality, leisure and retail' will include salons and barbershops in Wales.)
 
The Welsh government will be offering grants to businesses eligible for Small Business Rate Relief with a rateable value of £12,000 or less (a grant of £10,000) and those in retail, leisure and hospitality with a rateable value of £12,001-£51,000 (a grant of £25,000).  Businesses will need to apply online and these systems are currently being set up.
 
Find more information on the Business Wales website.
 

What has the Scottish government announced?

To help owners of non-domestic properties, including businesses, deal with the impact of COVID-19, the Scottish Government has made changes to non-domestic rates (business rates) for 2020-21.

  • All non-domestic properties in Scotland will get a 1.6% rates relief. This relief effectively reverses the change in poundage for 2020-21. You do not need to apply for this relief and it will be applied to your bill by your local council.
  • Retail, hospitality and leisure businesses will get 100% rates relief ('hospitality, leisure and retail' will include salons and barbershops in Scotland). To get this relief, a property has to be occupied. 

The Scottish Government has also introduced extra rates reliefs (discounts). These reliefs will be available to non-domestic properties from 1 April 2020 to 31 March 2021.

Small businesses in receipt of the small business bonus scheme or rural relief, as well as hospitality, leisure and retail business can apply for a grant. ('Hospitality, leisure and retail' will include salons and barbershops in Scotland.)

Rent payments on commercial premises: Scotland has extended the notice period before a commercial lease can be terminated for non-payment of rent from 14 days to 14 weeks under the Coronavirus (Scotland) Act.

Helpline

The Scottish Government has set up a helpline to provide support to businesses: 0300 303 0660.

What has the Northern Ireland Executive announced?

Businesses eligible for Small Business Rate Relief and those in retail, leisure and hospitality with a rateable value of £15,000-£51,000 (we are waiting for confirmation that 'hospitality, leisure and retail' will include salons and barbershops) will be eligible for grants. Registration is now open for businesses to apply. Find out more.

Rates holiday for businesses

There will be a three month rates holiday for all business ratepayers, excluding public sector and utilities. No rates will be charged for April, May and June 2020. This will be shown as a 25% discount on the annual rate bill for business ratepayers.

Delay in rate bills

Rate bills for 2020-21 were due to be issued in April 2020. To avoid placing financial pressure on ratepayers affected by COVID-19, rate bills will not be issued until June 2020.

When rate bills are sent in June 2020, ratepayers can still choose to pay their bill in monthly instalments between June 2020 and March 2021. Monthly direct debit payment plans will be updated to collect payments between June 2020 and March 2021.

Find out more.

Do I still have to pay the rent on my premises while we are closed?

Communities Secretary, Robert Jenrick has announced that commercial tenants, which includes hair and beauty salons, barbershops, nail and eyelash bars and tanning shops, will be protected from the risk of eviction until the end of 2020, helping businesses to survive and protect jobs. Find out more.

This is not a rental holiday. All commercial tenants will still be liable for the rent. Commercial tenants are protected from eviction if they are unable to pay rent.

What other financial steps should I take?

It's good idea to talk to your bank as they are taking a more flexible approach at this time and may be able to offer payment holidays or an emergency loan.

Speak to your suppliers and try to negotiate flexible payment terms if you currently owe money for products or equipment.

Talk to your accountant if you have one. They may be able to offer additional expert advice.

How do I keep my premises safe while my business is closed?

The Metropolitan Police have issued some guidelines including the following:

  • Test your alarm, ensure it is monitored and fully operational
  • Identify any vulnerable areas. Rectify these. Ensure security gates, bollards and fire
    exit doors have been secured prior to closure of the premises.
  • Make sure you have a list of key holders who can be contacted in times of emergency.
    Ensure your contact details for staff are up to date.
  • Consider moving high value items into secured stockrooms and out of view.
  • Ensure keys to the premises are not left inside and are instead with
    dedicated key holders.
  • Consider timer switches or ensure sufficient lighting is left on at the
    premises/surrounding area.
  • Ensure there are no combustible materials left near the building such as
    packaging - consider the risk of arson.
  • Review your CCTV to confirm it is working, provides good quality images and is
    positioned to cover as much of your premises as possible. You may wish to
    consider a mobile phone app that allows connectivity and a vocal capacity to engage
    with any intruder.
  • External shutters are recommended but some buildings may be subject to planning
    approval before installation
  • Laminated glass or security film can be applied to existing glass to make it more
    resistant to a physical assault. Shutters and grilles ( subject to planning regulations may
    also be a consideration).
  • Fogging devices that activate as a result of an intruder activation may also be
    beneficial-you can’t steal what you can’t see.
  • Avoid legionella by regularly flushing through your taps and water outlets if this is possible while complying with the government's current lockdown rules. Find out more on the Legionella Control website.

What help is available for the self-employed? 

Rental payments

If you use the NHBF chair/space/room renting agreements, please see this information.

If you do not use NHBF contracts, you will need to take legal advice.

Second self-employment grant scheme now open

You can make a claim for the second and final self-employment grant even if you didn’t make a claim for the first grant. You can claim if your business was adversely affected on or after 14 July 2020. 

You must claim before 19 October 2020. Find out more and make you claim on the government website. 

The first self-employment grant is now closed.

Extension to scheme

The grant scheme for the self-employed has been extended. The extension will provide two taxable grants, each covering three months from November 2020 to April 2021. The first grant will cover 20% of average monthly trading profits capped at a total of £1,875. The level of the second grant for February to April 2021 will be decided in due course. Find out more on the government website.

Working while receiving the grant

Self-employed individuals can still work while receiving this grant, but they must comply with the government's rules about staying indoors and social distancing, so this is probably of little help to self-employed therapists, stylists and barbers.

Scam warning 

You can access these schemes only through the government website. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam. Find out more.

In addition:

Read FAQs about this on the government website.

Find more information about this on the government website.

Can I sell/supply professional hair colour products to my clients?

No. These products should be marked ‘for professional use only’ and salons/barbershops should never offer them for resale or supply them to clients. If you do, you could be held liable for anything that goes wrong when the client uses the product as you won’t have assessed the client’s hair or completed any tests, including any required allergy alert tests. In addition, the client may not mix the product correctly, time it correctly, remove it thoroughly or apply the required conditioners.
 

Also: It is very difficult for clients to successfully apply re-touching products at home. Clients tend to apply it to the whole hair which leads to patchy, over-processed results and sometimes a colour reaction such as a green tinge. Again, you could be held liable for anything that goes wrong.

If something goes wrong, and you are held liable,  your insurance won't cover you for any claim made by the client. Your reputation could also be damaged.

See more information about this, including advice about colour shampoos and retail products.

Will my business insurance cover me for losses caused by the coronavirus? 

Check with your insurance provider to see if you are covered.  However, very few businesses have the specific cover that would potentially enable them to claim for the impact of the coronavirus pandemic.

Read detailed information about this provided by the Association of British Insurers.

Update, 16 September 2020: a recent test case heard in High Court means that insurers may have to pay out in some cases. However, the ruling was complex and will not apply to all policies. Plus, insurance companies may appeal the decision. We will update this information when we know more.

I can’t afford to pay my tax bill. What should I do? 

Salons and barbershops who deferred their VAT bills will be given the option to pay back in smaller instalments.

Self-assessment taxpayers can benefit from an additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

If you are having difficulty paying your tax at this time, you may be able to get support via HMRC’s Time To Pay service. Call the dedicated helpline on 0800 0159 559. 

What are the numbers for the government's business support helplines?

Bear in mind that these helplines will be extremely busy at the moment. The numbers are:

  • England: 0300 456 3565.  
  • Scotland: 0300 303 0660.
  • Wales: 0300 060 3000.
  • Northern Ireland 0800 181 4422.

What is the NHBF doing? 

The NHBF is in close daily contact with key government officials and MPs to fight for the interests of our Members at this hugely difficult time.