The Autumn Budget

01 Nov 2018

Written by Tom

This week the Autumn budget was announced, and came as a delightful surprise to those working within the hairdressing industry. The budget itself contained some benefits to those within the industry, which has come as a huge surprise, but none the less a great one.

The budget was drawn and presented by Philip Hammond, Chancellor of the Exchequer, and was as always, very detailed and indepth as we would expect. With Brexit looming, the anxious feeling was very apparent amongst business owners around the UK, however when being delivered, the news was a lot more positive.

Here we’ve identified the key areas that we feel are appropriate to salons, spas and barbershops;

Apprenticeships
The Chancellor has explained that the mandatory cash contribution from employers towards the cost of apprenticeship training and assessment will be reduced from 10% to 5% from the 5th April 2019 for all new starters.

Business Rates
Business rates for those in the hair, beauty and barbershops with a rateable value of £51,000 or less will be cut by a third for two years. The Chancellor has also allocated a staggering £675million to local high streets to improve transport links, redevelop empty shops as homes and offices. This alone is a huge welcome to business owners across the country.

Wages
Increases have been announced for the National Living Wage and the National Minimum Wage.

Current rate April 2019 Increase
National Living Wage 25+ £7.83 £8.21 4.9%
National Minimum Wage 21-24 7.38 7.70 4.3%
National Minimum Wage 18-20 £5.90 £6.15 4.2%
National Minimum Wage 16-17 £4.20 £4.35 3.6%
National Minimum Wage Apprentice rate £3.70 £3.90 5.4%
Accommodation offset £7.00 per day £7.55 per day 7.9%

 

Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19
  • aged 19 or over and in the first year of their apprenticeship

 

VAT registration threshold
The VAT Registration Threshold will be maintained at the current level of £85,000 until April 2022.

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