LAST UPDATED: 22/04/20 - L'Oreal Professionnel
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LAST UPDATED: 22/04/20
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INTRODUCTION
L’Oréal is here to support you through this exceptional period and the transitions that you will
go through during this time. We hope this guide will help support you through each stage:
ceasing to work, when you are temporarily not working and when you resume working. We can
reassure you that our entire L’Oréal team is by your side during this difficult moment.
The L’Oréal Professional Products Division have created this guide to provide a destination
for the hairdressing industry to find up-to-date support available during the Covid-19 crisis.
Teams across L’Oréal Professionnel, Kérastase, Redken, Matrix, Pulp Riot, Decléor,
Pureology, Biolage and Shu Uemura Art of Hair have all helped to create this guide book.
In ongoing support of the fight against coronavirus, The L'Oreal Group has implemented a
European-wide Solidarity Programme to support the fight against coronavirus by all
stakeholders. https://mediaroom.loreal.com/wp-content/uploads/2020/03/PR_LOreal-
Europe-wide-coronavirus-solidarity.pdf
In addition to this, L’Oréal UK and Ireland is implementing a series of measures for
communities most impacted by the crisis. The group and its family of brands will donate
more than half a million hygiene products and hand sanitisers to frontline healthcare workers
in UK and Ireland serving the most vulnerable people and striving to curb the pandemic. The
group will donate a further 300,000 hand sanitisers to frontline retail staff that is ensuring
availability of essential goods and services to communities across UK and Ireland. These
products will be provided completely free of charge. This commitment builds on the L’Oréal
Group’s wider European solidarity programme announced globally on 18 March.
Together, L’Oréal UK & Ireland will:
Donate 400,000 hygiene & care products to frontline healthcare workers: in
partnership with In Kind Direct and Blue Light Card, we will provide 400,000 body wash,
hand creams, conditioner, shampoo and skincare products to hospital workers in the UK
and Ireland. This includes products from L’Oréal Paris, Garnier, Kiehl’s, Lancôme, Urban
Decay, YSL, House 99, L’Oréal Paris Men Expert, La RochePosay, CeraVe, Vichy,
Roger and Gallet, Baxter of California, Kerastase, Redken, Matrix and Decleor;
Donate 100,000 Hand Sanitisers to support NHS and HSE: we will distribute 100,000
La Roche Posaymanufactured hand sanitisers to frontline healthcare workers in the NHS
and HSE;
Donate 10,000 Examination Gloves to the London Ambulance Service: we will
donate 10,000 boxed sterile examination gloves to the London Ambulance Service
through the L’Oréal Young Scientist Centre at the Royal Institute;
Support small businesses: L'Oréal UK and Ireland has frozen the payments of our
most vulnerable very small and smallsized customers in our distribution network,
including hair salons, until their businesses resume. Additionally, L'Oréal UK and Ireland
has shortened its payment times for small suppliers who have been most exposed to this
economic crisis;
Protect pharmacy and food distribution workers: Garnier will give 300,000 free
bottles of the new Garnier Pure Active Hand Sanitiser Gel to essential retail staff working
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at Boots, Tesco, ASDA, Sainsbury’s and Irish retailer Dunnes Stores, helping to protect
themselves from COVID19;
Vismay Sharma, L’Oréal UK and Ireland Country Managing Director, commented:
“At L'Oréal UK & Ireland we feel a strong sense of responsibility to support relief
efforts for the most vulnerable during this unprecedented crisis. The frontline
healthcare workers and retail staff are doing an incredible job looking after the sick
and providing essential products and services to communities. We feel honoured to
be able to provide them with hand sanitisers and key hygiene products. We believe in
the beauty of community and are proud to contribute to the needs of our heroic NHS
and HSE staff, and those on the retail frontlines across the UK & Ireland.”
https://www.instagram.com/p/B_NaZ8LHuMd/
Government Updates: https://www.gov.uk/coronavirus/business-support
Please note that L’Oréal (UK) Limited is not providing legal or financial or other advice. This document is not a
substitute for obtaining independent legal or financial or other advice from any relevant third party such as an
appointed accountant, solicitor or bank. We just wanted to amass some information & resources that are available
to you and accessible to the public, in one easy place, as well as some tips. You should, of course, not rely on this
document, and ensure you have undertaken your own independent research alongside it. The information in this
document does not purport to be comprehensive, has been provided by us and has not been independently verified.
While this document has been prepared in good faith, no representation, warranty, assurance or undertaking
(express or implied) is or will be made, and no responsibility or liability is or will be accepted by L’Oréal (UK) Limited
or any of its affiliated companies or any of their respective officers, employees or agents in relation to the adequacy,
accuracy, completeness or reasonableness of this document. All and any such responsibility and liability is
expressly disclaimed. This document has been delivered to interested parties for information only and on the
express understanding that they shall use it only for information-purposes. L’Oréal (UK) Limited gives no
undertaking to provide recipients with access to any additional information or to update this document or any
additional information, or to correct any inaccuracies in it which may become apparent.
CONTENTS
SECTION 1: SELF-EMPLOYED
SECTION 2: SOCIAL MEDIA SUPPORT
SECTION 3: USEFUL CONTACT INFORMATION
SECTION 4: MARKET INSIGHTS CONSUMER BEHAVIOUR COVID-19
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SUMMARY OF THIS SECTION
• Government Measures
- Income Support Scheme
- Grants For Businesses That Pay Little Or No Business
Rates
- Business Interruption Loan Scheme
- VAT & Income Tax
- Claiming Benefits
- Job Retention Scheme
- Rent & Mortgages
For the latest government updates go to:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-
covid-19/guidance-for-employers-and-businesses-on-coronavirus-covid-19
This document does not constitute legal or financial or other advice from L’Oréal (UK) Limited and is not a substitute for obtaining
independent advice. No representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is
or will be accepted by L’Oréal (UK) Limited or any of its affiliated companies
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. SELF-EMPLOYMENT INCOME SUPPORT SCHEME
If you are self-employed or a member of a partnership and have lost income due to
coronavirus, this scheme will allow you to claim a taxable grant 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.
Eligibility: You can apply if you’re a self-employed individual or a member of a partnership
and you:
have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
traded in the tax year 2019-20
are trading when you apply, or would be except for COVID-19
intend to continue to trade in the tax year 2020-21
have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must also be less than £50,000 and more than half of your
income come from self-employment. This is determined by at least one of the following
conditions being true:
having trading profits/partnership trading profits in 2018-19 of less than £50,000 and
these profits constitute more than half of your total taxable income
having average trading profits in 2016-17, 2017-18, and 2018-19 of less than
£50,000 and these profits constitute more than half of your average taxable income
in the same period
If you started trading between 2016-19, HMRC will only use those years for which you filed a
Self-Assessment tax return.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year
2018-19, you must do this by 23 April 2020.
HMRC will use data on 2018-19 returns already submitted to identify those eligible and will
risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
Rate of Payment:
You’ll get a taxable grant which will be 80% of the average profits from the tax years (where
applicable):
2016 to 2017
2017 to 2018
2018 to 2019
To work out the average HMRC will add together the total trading profit for the 3 tax years
(where applicable) then divide by 3 (where applicable), and use this to calculate a monthly
amount.
It will be up to a maximum of £2,500 per month for 3 months.
We’ll pay the grant directly into your bank account, in one instalment.
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How to apply to this scheme:
You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the
scheme and invite you to apply online. Individuals do not need to contact HMRC now and
doing so will only delay the urgent work being undertaken to introduce the scheme.
You will access this scheme only through GOV.UK. 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.
After you’ve applied:
Once HMRC has received your claim and you are eligible for the grant, we will contact you
to tell you how much you will get and the payment details.
If you claim tax credits you’ll need to include the grant in your claim as income.
To find out more information, click on the below link:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-
employment-income-support-scheme
GRANTS FOR BUSINESSES WHO PAY LITTLE TO NO
BUSINESS RATES
The government will provide additional Small Business Grant Scheme funding for local
authorities to support small businesses that already pay little or no business rates because
of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will
provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business
costs.
Eligibility: You are eligible if:
you are a small business and already receive SBRR and/or RRR
you are a business that occupies property
Please note, this scheme is devolved, and therefore the application process is different
depending on where you are based. For business support outside of England go to:
Scotland: https://findbusinesssupport.gov.scot/coronavirus-advice/sources-of-funding
- click on: local authorities – coronavirus grants and select your local council to apply
Wales: https://www.cardiff.gov.uk/ENG/Business/Business-Rates/Covid-
grant/Pages/default.aspx – click here to complete the online application process
Northern Ireland: https://www.nibusinessinfo.co.uk/content/coronavirus-business-
support-grant-schemes – click here to complete the online application process
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England: To access the scheme you do not need to do anything. Your local authority will
write to you if you are eligible for this grant. Any enquiries on eligibility for, or provision of, the
reliefs and grants should be directed to the relevant local authority.
Who to contact: No one, your local authority will contact you. Find your local authority.
BUSINESS INTERRUPTION LOAN SCHEME
If you are trading as a limited business, and if you have cash flow difficulties, you can apply for
a Corona Virus Business Interruption Loan.
This new temporary loan Scheme, to be delivered by the British Business Bank, will launch
soon to primarily support small and medium-sized businesses to access bank lending and
overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-
lender cap on claims) to give lenders further confidence in continuing to provide finance
to SMEs. The government will not charge businesses or banks for this guarantee, and the
Scheme will support loans of up to £5 million in value.
Businesses can access the first 12 months of that finance interest free, as government will
cover the first 12 months of interest payments.
Eligibility: Your business must be UK based with a turnover of no more than £45 million per
year and your business meets the other British Business Bank eligibility criteria.
How to access the scheme:
The full rules of the scheme and the list of accredited lenders is available on the British
Business Bank website. All the major banks will offer the scheme once it has launched.
There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as
possible and discuss your business plan with them. This will help your finance provider to act
quickly once the Scheme has launched. If you have an existing loan with monthly
repayments, you may want to ask for a repayment holiday to help with cash flow.
Who to contact: Talk to your bank or finance provider.
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VAT & INCOME TAX
Deferral of VAT payments due to coronavirus (COVID-19):
If you’re a UK VAT registered business and have a VAT payment due between 20 March
2020 and 30 June 2020, you have the option to:
- defer the payment until a later date
- pay the VAT due as normal
It does not cover VAT MOSS payments.HMRC will not charge interest or penalties on any
amount deferred as a result of the Chancellor’s announcement. You will still need to submit
your VAT returns to HMRC on time. HMRC will continue to process VAT reclaims and
refunds as normal during this time.
If you choose to defer paying your VAT:
If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must
pay the VAT due on or before 31 March 2021. You do not need to tell HMRC that you are
deferring your VAT payment.
Payments made by Direct Debit:
If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit
as soon as you can, or you can cancel online if you’re registered for online banking.
After the VAT deferral ends:
VAT payments due following the end of the deferral period will have to be paid as normal.
Further information about how to repay the VAT you’ve deferred will be available soon.
DEFERRAL OF INCOME TAX DUE TO CORONAVIRUS
If you’re in temporary financial distress because of COVID-19 and cannot pay your
income tax.
If you are experiencing financial difficulties more help is available from HMRC’s Time to
Pay scheme.
All businesses and self-employed people in financial distress, and with outstanding tax
liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To
Pay service. These arrangements are agreed on a case-by-case basis and are tailored to
individual circumstances and liabilities.
Eligibility: You are eligible if your business:
pays tax to the UK government
8 has outstanding tax liabilities
Who to contact: Webchat
Advisers can only talk to you about problems paying your taxes due to coronavirus (COVID-
19). This could be:
Self-Assessment
VAT
employers’ PAYE
Corporation Tax
They will not be able to transfer you to another web chat team. Speak to an adviser.
Phone
Due to measures put in place to stop the spread of coronavirus (COVID-19) we have fewer
advisers available to answer your calls.
Telephone: 0800 024 1222
Opening times: Monday to Friday: 8am to 4pm
Support for businesses through deferring Self-Assessment payments on account
If you’re due to pay a self-assessment payment on account by 31 July 2020 but the impact
of the coronavirus causes you difficulty in making payment by that date, then you may defer
payment until January 2021.
Eligibility
You are eligible if you are due to pay your second self-assessment payment on account on
31 July. You do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on account on 31
July you should do so.
How to access the scheme:
This is an automatic offer with no applications required. No penalties or interest for late
payment will be charged if you defer payment until 31 January 2021.
During the deferral period you can set up a budget payment plan to help you pay the
deferred payment on account when it comes due.
If you’re in temporary financial distress because of COVID-19 more help is available from
HMRC’s Time to Pay scheme.
9If you cannot pay your Self-Assessment tax bill
If you’ve filed your return and owe less than £10,000 you might be able to arrange to pay in
instalments online. You do not need to contact HMRC if you have set up a payment plan
online. Call the Self Assessment helpline if you’ve missed your payment date or you cannot
use the online service.
Self Assessment Payment Helpline
Telephone: 0300 200 3822
Monday to Friday, 8am to 4pm
Find out about call charges
If you cannot pay other taxes
If you’ve received a payment demand, like a tax bill or a letter threatening you with legal
action, call the HMRC office that sent you the letter.
Call the Payment Support Service if you have not received a bill or letter.
Payment Support Service
Telephone: 0300 200 3835
Monday to Friday, 8am to 4pm
Find out about call charges
If you are in a partnership, nominated partners in business partnerships can negotiate time
to pay with HMRC on behalf of the partnership or individual partners.
CLAIMING BENEFITS
Whether you are currently in or out of work, if you are on a low income and affected by the
economic impact of COVID-19, you will be able to access a range of benefits via the welfare
system, including Universal Credit. From 6th April the standard allowance in Universal Credit
is increasing as is the basic element in Working Tax Credit for 1 year. Both will increase by
£20 per week on top of planned annual uprates. This will apply to all new and existing
Universal Credit claimants and to existing Working Tax Credit claimants.
You are able to claim Universal Credit, providing you meet the usual eligibility criteria. To
support you with the economic impact of the outbreak, and allow you to follow government
guidance on self-isolation and social distancing, from 6 April the requirements of the
Minimum Income Floor will be temporarily relaxed. This change will apply to all Universal
Credit claimants and will last for the duration of the outbreak.
New claimants will not need to attend the job centre to demonstrate gainful self-
employment
Who to contact: Your local authority.
10JOB RETENTION SCHEME
If you’re a director of your own company and paid through PAYE you may be able to get
support using the Job Retention Scheme.
Coronavirus Job Retention Scheme:
If you cannot maintain your current workforce because your operations have been severely
affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that
covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated
Employer National Insurance contributions and pension contributions (up to the level of the
minimum automatic enrolment employer pension contribution) on that subsidised furlough
pay.
This is a temporary scheme in place for 3 months starting from 1 March 2020, but it may be
extended if necessary and employers can use this scheme anytime during this period. It is
designed to help employers whose operations have been severely affected by coronavirus
(COVID-19) to retain their employees and protect the UK economy. However, all employers
are eligible to claim under the scheme and the government recognises different businesses
will face different impacts from coronavirus.
The way to make a claim is online- the service should be simple to use and any support you
need available on GOV.UK.
Please use the online support and do not contact HMRC unless it is absolutely necessary -
any questions should be directed at your agent, representative or the Web chat service.
Eligibility:
You must have:
created and started a PAYE payroll scheme on or before 19 March 2020
enrolled for PAYE online
a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies
and public authorities.
Apprentices
Apprentices can be furloughed in the same way as other employees and they can continue
to train whist furloughed.
11However, you must pay your Apprentices at least the Apprenticeship Minimum
Wage/National Living Wage/National Minimum Wage (AMW/NLW/NMW) as appropriate for
all the time they spend training. This means you must cover any shortfall between the
amount you can claim for their wages through this scheme and their appropriate minimum
wage.
Guidance is available for changes in apprenticeship learning arrangements because of
COVID-19.
Administrators
Where a company is being taken under the management of an administrator, the
administrator will be able to access the Job Retention Scheme. However, an administrator
would only access the scheme if there is a reasonable likelihood of rehiring the workers. For
instance, this could be as a result of an administration and pursuit of a sale of the business.
Employees you can claim for
You can only claim for furloughed employees that were on your PAYE payroll on or before
19 March 2020 and which were notified to HMRC on an RTI submission on or before 19
March 2020.This means an RTI submission notifying payment in respect of that employee to
HMRC must have been made on or before 19 March 2020. Employees that 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 also qualify for the scheme if the employer re-employs
them and puts them on furlough.
Employees can be on any type of employment contract, including full-time, part-time,
agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed.
Grants under the scheme are not counted as ‘access to public funds’, and you can furlough
employees on all categories of visa.
To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on
behalf, of the organisation or any linked or associated organisation. This includes providing
services or generating revenue. Employers are free to consider allocating any critical
business tasks to staff that are not furloughed. While on furlough, the employee’s wage will
be subject to usual income tax and other deductions.
If you made employees redundant or they stopped working for you after 28 February
If you made employees redundant, or they stopped working for you on or after 28 February
2020, you can re-employ them, put them on furlough and claim for their wages through the
scheme. This applies to employees that were made redundant or stopped working for you
after 28 February, even if you do not re-employ them until after 19 March. This applies as
long as the employee was on your payroll as at 28 February and had been notified to HMRC
on an RTI submission on or before 28 February 2020. This means an RTI submission
notifying payment in respect of that employee to HMRC must have been made on or before
28 February 2020
12If an employee has had multiple employers over the past year, has only worked for one of
them at any one time, and is being furloughed by their current employer, their former
employer/s should not re-employ them, put them on furlough and claim for their wages
through the scheme.
If your employees are working reduced hours
If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible
for this scheme.
If your employee is on unpaid leave
If an employee started unpaid leave after 28 February 2020, you can put them on furlough
instead. If you put them on furlough then you should pay them at least 80% of their regular
wages, up to the monthly cap of £2500.
If an employee went on unpaid leave on or before 28 February, you cannot furlough them
until the date on which it was agreed they would return from unpaid leave.
If your employee is self-isolating or on sick leave
If your employee is on sick leave or self-isolating as a result of Coronavirus, they’ll be able to
get Statutory Sick Pay, subject to other eligibility conditions applying. The Coronavirus Job
Retention Scheme is not intended for short-term absences from work due to sickness, and
there is a 3 week minimum furlough period.
Short term illness/ self-isolation should not be a consideration in deciding whether to
furlough an employee. If, however, employers want to furlough employees for business
reasons and they are currently off sick, they are eligible to do so, as with other employees. In
these cases, the employee should no longer receive sick pay and would be classified as a
furloughed employee.
Employers are also entitled to furlough employees who are being shielded or off on long-
term sick leave. It is up to employers to decide whether to furlough these employees. You
can claim back from both the Coronavirus Job Retention Scheme and the SSP rebate
scheme for the same employee but not for the same period of time. When an employee is on
furlough, you can only reclaim expenditure through the Coronavirus Job Retention Scheme,
and not the SSP rebate scheme. If a non-furloughed employee becomes ill, needs to self-
isolate or be shielded, then you might qualify for the SSP rebate scheme, enabling you to
claim up to two weeks of SSP per employee.
If your employee becomes sick while furloughed
Furloughed employees retain their statutory rights, including their right to Statutory Sick Pay.
This means that furloughed employees who become ill must be paid at least Statutory Sick
Pay. It is up to employers to decide whether to move these employees onto Statutory Sick
Pay or to keep them on furlough, at their furloughed rate.
13If a furloughed employee who becomes sick is moved onto SSP, employers can no longer
claim for the furloughed salary. Employers are required to pay SSP themselves, although
may qualify for a rebate for up to 2 weeks of SSP. If employers keep the sick furloughed
employee on the furloughed rate, they remain eligible to claim for these costs through the
furloughed scheme.
Shielding Employees
Employees who are unable to work because they are shielding in line with public health
guidance (or need to stay home with someone who is shielding) can be furloughed.
Employees with caring responsibilities
Employees who are unable to work because they have caring responsibilities resulting from
coronavirus (COVID-19) can be furloughed. For example, employees that need to look after
children can be furloughed.
If your employee has more than one job
If your employee has more than one employer they can be furloughed for each job. Each job
is separate, and the cap applies to each employer individually.
Employees can be furloughed in one job and receive a furloughed payment but continue
working for another employer and receive their normal wages.
If your employee is on a fixed term contract
Employees on fixed term contracts can be furloughed. Their contracts can be renewed or
extended during the furlough period without breaking the terms of the scheme. Where a
fixed term employee’s contract ends because it is not extended or renewed you will no
longer be able claim grant for them.
Eligible individuals who are not employees
As well as employees, the grant can be claimed for any of the following groups, if they are
paid via PAYE: office holders (including company directors), salaried members of Limited
Liability Partnerships (LLPs), agency workers (including those employed by umbrella
companies), and limb (b) workers.
The guidance below sets out specific considerations for those individuals who are paid
via PAYE, but who are not necessarily employees in employment law. Unless explicitly set
out below, all other guidance is applicable to these cases, and should be followed.
Office Holders
Office holders can be furloughed and receive support through this scheme. The furlough,
and any ongoing payment during furlough, will need to be agreed between the office holder
14and the party who operates PAYE on the income they receive for holding their office. Where
the office holder is a company director or member of a Limited Liability Partnership (LLP),
the furlough arrangements should be adopted formally as a decision of the company or LLP.
Company Directors
As office holders, salaried company directors are eligible to be furloughed and receive
support through this scheme. Company directors owe duties to their company which are set
out in the Companies Act 2006. Where a company (acting through its board of directors)
considers that it is in compliance with the statutory duties of one or more of its individual
salaried directors, the board can decide that such directors should be furloughed. Where one
or more individual directors’ furlough is so decided by the board, this should be formally
adopted as a decision of the company, noted in the company records and communicated in
writing to the director(s) concerned.
Where furloughed directors need to carry out particular duties to fulfil the statutory
obligations they owe to their company, they may do so provided they do no more than would
reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they
would carry out in normal circumstances to generate commercial revenue or provides
services to or on behalf of their company.
This also applies to salaried individuals who are directors of their own personal service
company (PSC).
Salaried Members of Limited Liability Partnerships (LLPs)
Members of LLPs who are designated as employees for tax purposes (‘salaried members’)
under the Income Tax (Trading and Other Income) Act (ITTOIA) 2005 are eligible to be
furloughed and receive support through this scheme.
The rights and duties of a member of an LLP are set out in an LLP agreement and in the
absence of an agreement, default provisions in the LLP Act 2000, based upon company and
partnership law. Such an agreement may include separate agreement between the LLP and
an individual member setting out the terms applicable to that member’s relationship with
the LLP.
To furlough a member, the terms of the LLP agreement (or any such agreement between
the LLP and the member) may need to be varied by a formal decision of the LLP, for
example to reflect the fact that the member will perform no work in the LLP for the period of
furlough, and the effect of this on their remuneration from the LLP. For an LLP member who
is treated as being employed by the LLP (in accordance with s863A of ITTOIA 2005), the
reference salary for this scheme is the LLP member’s profit allocation, excluding any
amounts which are determined by the LLP member’s performance, or the overall
performance of the LLP.
15Agency Workers (including those employed by umbrella companies)
Where agency workers are paid through PAYE, they are eligible to be furloughed and
receive support through this scheme, including where they are employed by umbrella
companies.
Furlough should be agreed between the agency, as the deemed employer, and the worker,
though it would be advised to discuss the need to furlough with any end clients involved. As
with employees, agency workers should perform no work for, through or on behalf of the
agency that has furloughed them while they are furloughed, including for the agency’s
clients.
Where an agency supplies clients with workers who are employed by an umbrella company
that operates the PAYE, it will be for the umbrella company and the worker to agree whether
to furlough the worker or not.
Limb (b) Workers
Where Limb (b) Workers are paid through PAYE, they can be furloughed and receive
support through this scheme.
Those who pay tax on their trading profits through Income Tax Self-Assessment, may
instead be eligible for the Self-Employed Income Support Scheme (SEISS), announced by
the Chancellor on 26 March 2020.
Read more information on the Self-Employed Income Support Scheme, including eligibility
criteria and how to claim.
Employee transfers under TUPE and on a change in ownership
A new employer is eligible to claim under the CJRS in respect of the employees of a
previous business transferred after 19 March 2020 if either the TUPE or PAYE business
succession rules apply to the change in ownership.
Read more guidance on TUPE rules.
Read more guidance on business succession.
Payroll Consolidation
Where a group of companies have multiple PAYE schemes and there is a transfer of all
employees from these schemes into a new consolidated PAYE scheme after 19 March
2020, the new scheme will be eligible to furlough those employees and claim the grants
available under the CJRS.
If your employee does volunteer work
A furloughed employee can take part in volunteer work, if it does not provide services to or
generate revenue for, or on behalf of your organisation or a linked or associated
16organisation. Your organisation can agree to find furloughed employees new work or
volunteering opportunities whilst on furlough if this is in line with public health guidance.
If your employee undertakes training
Furloughed employees can engage in training, as long as in undertaking the training the
employee does not provide services to, or generate revenue for, or on behalf of their
organisation or a linked or associated organisation. Furloughed employees should be
encouraged to undertake training.
Where training is undertaken by furloughed employees, at the request of their employer,
they are entitled to be paid at least their appropriate national minimum wage for this time. In
most cases, the furlough payment of 80% of an employee’s regular wage, up to the value of
£2,500, will provide sufficient monies to cover these training hours. However, where the time
spent training attracts a minimum wage entitlement in excess of the furlough payment,
employers will need to pay the additional wages (see National Minimum Wage Section for
more details).
If your employee is on maternity leave, adoption leave, paternity leave or shared
parental leave
The normal rules for maternity and other forms of parental leave and pay apply.
You can claim through the scheme for enhanced (earnings related) contractual pay for
employees who qualify for either:
maternity pay
adoption pay
paternity pay
shared parental pay
Agreeing to furlough employees
Employers should discuss with their staff and make any changes to the employment contract
by agreement. When employers are making decisions in relation to the process, including
deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.
To be eligible for the grant employers must confirm in writing to their employee confirming
that they have been furloughed. A record of this communication must be kept for five years.
You do not need to place all your employees on furlough. However, those employees who
you do place on furlough cannot undertake work for you.
17How much you can claim
You’ll need to claim for:
80% of your employees’ wages (even for employee’s on National Minimum Wage) - up to
a maximum of £2,500 per month. Do not claim for the worker’s previous salary.
Employer National Insurance contributions that are paid on the subsidised furlough pay.
Employer pension contributions that are paid on the subsidised furlough pay, up to the level
of the minimum automatic enrolment employer contribution. The maximum level of grant for
employer pension contributions on subsidised furlough pay is set in line with the minimum
automatic enrolment employer contribution of 3% on qualifying earnings. Grants for pension
contributions can be claimed up to this cap provided the employer will pay the whole amount
claimed to a pension scheme for the employee as an employer contribution.
You can choose to top up your employee’s salary, but you do not have to. Employees must
not work or provide any services for the business while furloughed, even if they receive a
top-up salary.
Grants will be prorated if your employee is only furloughed for part of a pay period.
Claims should be started from the date that the employee finishes work and starts furlough,
not when the decision is made, or when they written to confirming their furloughed status.
The way you work out your employees’ wages is different depending on what type of
contract they’re on, and when they started work.
Full or part time employees on a salary
Claim for the 80% of the employee’s salary, as in their last pay period prior to 19 March
2020.
If, based on previous guidance, you have calculated your claim based on the employee’s
salary as at 28 February 2020 (and this differs from their salary in their last pay period prior
to 19 March 2020) you can choose to still use this calculation for your first claim.
Employees whose pay varies
If the employee has been employed for 12 months or more, you can claim the highest of
either the:
same month’s earning from the previous year
average monthly earnings for the 2019-2020 tax year
If the employee has been employed for less than 12 months, claim for 80% of their average
monthly earnings since they started work until the date they are furloughed.
If they have been employed for less than a month, work out a pro rata for their earnings so
far, and claim for 80%.
18Past Overtime, Fees, Commission, Bonuses and non-cash payments
You can claim for any regular payments you are obliged to pay your employees. This
includes wages, past overtime, fees and compulsory commission payments. However,
discretionary bonus (including tips) and commission payments and non-cash payments
should be excluded.
Benefits in Kind and Salary Sacrifice Schemes
The reference salary should not include the cost of non-monetary benefits provided to
employees, including taxable Benefits in Kind. Similarly, benefits provided through salary
sacrifice schemes (including pension contributions) that reduce an employee’s taxable pay
should also not be included in the reference salary.
All the grant received to cover an employee’s subsidised furlough pay must be paid to them
in the form of money. No part of the grant should be netted off to pay for the provision of
benefits or a salary sacrifice scheme.
Where the employer provides benefits to furloughed employees, including through a salary
sacrifice scheme, these benefits should be in addition to the wages that must be paid under
the terms of the Job Retention Scheme.
Normally, an employee cannot switch freely out of a salary sacrifice scheme unless there is
a life event. HMRC agrees that COVID-19 counts as a life event that could warrant changes
to salary sacrifice arrangements, if the relevant employment contract is updated accordingly.
Employer National Insurance and Pension Contributions
You’ll still need to pay employer National Insurance and pension contributions on behalf of
your furloughed employees, and you can claim for these too.
You cannot claim for:
additional National Insurance or pension contributions you make because you chose to
top up your employee’s salary
any pension contributions you make that are above the mandatory employer contribution
Apprenticeship Levy and Student Loans
Both the Apprenticeship Levy and Student Loans should continue to be paid as usual.
Grants from the Job Retention Scheme do not cover these.
National Minimum Wage
Individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage
(NMW)/ Apprentices Minimum Wage (AMW) for the hours they are working or treated as
working under minimum wage rules. This means that furloughed workers who are not
working can be paid the lower of 80% of their salary or £2,500 even if, based on their usual
working hours, this would be below their appropriate minimum wage. However, time spent
19training is treated as working time for the purposes of the minimum wage calculations and
must be paid at the appropriate minimum wage, taking into account the increase in minimum
wage rates from 1 April 2020. As such, employers will need to ensure that the furlough
payment provides sufficient monies to cover these training hours. Where the furlough
payment is less than the appropriate minimum wage entitlement for the training hours, the
employer will need to pay the additional wages to ensure at least the appropriate minimum
wage is paid for 100% of the training time.
Where a furloughed worker is paid close to minimum wage levels and asked to complete
training courses for a substantial majority of their usual working time, employers are
recommended to seek independent advice or contact Acas.
Returning from statutory leave
Statutory leave includes maternity leave, paternity leave, shared parental leave, adoption
leave, sick leave and parental bereavement leave.
In line with other employees, claims for full or part time employees furloughed on return from
statutory leave should be calculated against their salary, before tax, not the pay they
received whilst on statutory leave.
Claims for those on variable pay, returning from statutory leave should be calculated using
either the:
same month’s earning from the previous year
average monthly earnings for the 2019-2020 tax year.
What you’ll need to make a claim
Employers should discuss with their staff and make any changes to the employment contract
by agreement. Employers may need to seek legal advice on the process. If sufficient
numbers of staff are involved, it may be necessary to engage collective consultation
processes to procure agreement to changes to terms of employment.
To claim, you will need:
your employer PAYE reference number
the number of employees being furloughed
National Insurance Numbers for the furloughed employees
Names of the furloughed employees
Payroll/employee number for the furloughed employees (optional)
your Self Assessment Unique Taxpayer Reference or Corporation Tax Unique Taxpayer
Reference or Company Registration Number
the claim period (start and end date)
amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
your bank account number and sort code
your contact name
20 your phone number
You will need to calculate the amount you are claiming. HMRC will retain the right to
retrospectively audit all aspects of your claim.
If you have fewer than 100 furloughed staff you will be asked to enter details of each
employee you are claiming for directly into the system - this will include their name, National
Insurance number, claim period and claim amount, and payroll/employee number (optional).
If you have 100 or more furloughed staff you will be asked to upload a file with the
information rather than input it directly into the system. We will accept the following file types:
.xls .xlsx .csv .ods
The file should include the following information for each furloughed employee: name,
National Insurance number, claim period and claim amount, payroll/employee number
(optional).
You should retain all records and calculations in respect of your claims.
HMRC cannot provide your employees with details of claims you make on their behalf.
Please help us by keeping your employees informed, answering any questions that they
might have. Please ask them not to contact HMRC.
If you use an agent who is authorised to act for you for PAYE purposes, they will be able to
make a claim on your behalf. If you use a file only agent (who files your RTI return but
doesn’t act for you on any other matters) they won’t be authorised to make a claim for you
and you will need to make the claim yourself. Your file only agent can assist you in obtaining
the information you need to claim (which is listed above). We are making the claim process
as straightforward as possible.
If an agent makes a claim on your behalf you will need to tell them which bank account you
would like the grant to be paid into.
Claim
You should make your claim using the amounts in your payroll - either shortly before or
during running payroll. Claims can be backdated until the 1 March where employees have
already been furloughed.
If appropriate, worker’s wages should be reduced to 80% of their salary within your payroll
before they are paid. This adjustment will not be made by HMRC.
Minimum furlough periods
Any employees you place on furlough must be furloughed for a minimum period of 3
consecutive weeks. When they return to work, they must be taken off furlough. Employees
can be furloughed multiple times, but each separate instance must be for a minimum period
of 3 consecutive weeks.
21After you’ve claimed
HMRC will check your claim, and if you’re eligible, pay it to you by BACS to a UK bank
account.
You must pay the employee all the grant you receive for their gross pay in the form of
money.
Furloughed staff must receive no less than 80% of their reference pay (up to the monthly cap
of £2500).
Employers cannot enter into any transaction with the worker which reduces the wages below
this amount. This includes any administration charge, fees or other costs in connection with
the employment.
When the government ends the scheme
When the government ends the scheme, you must make a decision, depending on your
circumstances, as to whether employees can return to their duties. If not, it may be
necessary to consider termination of employment (redundancy).
HMRC will process all claims made before the scheme ends.
When your employees are on furlough
You cannot ask your employee to do any work that:
makes money for your organisation or any organisation linked or associated with your
organisation
provides services for your organisation or any organisation linked or associated with your
organsation
They can take part in volunteer work or training.
Employee taxes
Your employees will still pay the taxes they normally pay out of their wages.
This includes pension contributions (both employer contributions and automatic contributions
from the employee), unless the employee has opted out or stopped saving into their pension.
Employee rights
Employees still have the same rights at work, including:
Statutory Sick Pay
maternity and other parental rights
22 rights against unfair dismissal
redundancy payments
Grants cannot be used to substitute redundancy payments. HMRC will continue to monitor
businesses after the scheme has closed.
Working for a different employer
If contractually allowed, your employees are permitted to work for another employer whilst
you have placed them on furlough.
For any employer that takes on a new employee, the new employer should ensure they
complete the starter checklist form correctly. If the employee is furloughed from another
employment, they should complete Statement C.
Tax Treatment of the Coronavirus Job Retention Grant
Payments received by a business under the scheme are made to offset these deductible
revenue costs. They must therefore be included as income in the business’s calculation of its
taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal
principles.
Businesses can deduct employment costs as normal when calculating taxable profits for
Income Tax and Corporation Tax purposes.
Individuals with employees that are not employed as part of a business (such as nannies or
other domestic staff) are not taxable on grants received under the scheme. Domestic staff
are subject to Income Tax and National Insurance Contributions on their wages as normal.
Who to contact: HMRC (online portal will be open by 20th April)
Check below for any further updates: https://www.gov.uk/guidance/claim-for-wage-costs-
through-the-coronavirus-job-retention-scheme
RENT HELP
If you are struggling financially due to the Coronavirus situation and can’t pay your rent,
there are several avenues open to you at this point. Start by talking to your landlord and
explaining the situation straight away. They might give you more time to pay due to the
extenuating circumstances. The second thing to note is if you are already in arrears or if you
fall behind during this period, the government has announced a temporary ban on evictions -
your landlord can’t start court action for at least 3 months.
Of course, this is a short term solution and you still need to pay your rent. So what can you
do short term to help pay your rent? If you’ve fallen behind with your rent you should
23start dealing with rent arrears. There is a specific process to deal with rent arrears which
you would need to follow, details of which can be found here. You can also check if you can
get extra financial help. There are several short term options open to you including interest
free loans and you may be entitled to benefits to help with housing costs if your income has
suddenly been reduced, even if you’re still working. Details of all of these options are
detailed here.
If your landlord doesn’t offer to be flexible with your rent payments, it’s a good idea to pay as
much as you can afford and keep a record of what you discussed.
You should check your eligibility for universal credit, which is available for people in and out
of work. Support for rental costs will be paid through universal credit. From April, we are
increasing local housing allowance rates to the 30th percentile of market rents. This applies
to all private renters.
MORTGAGE SUPPORT
Coronavirus and mortgage payment holidays:
For many, the biggest financial outgoing will be your monthly mortgage payments. If you’re
struggling financially due to coronavirus crisis you could benefit from a mortgage holiday to
help you manage during this difficult time.
The mortgage payment holiday will provide flexibility in repaying your mortgage by
allowing you to stop or reduce your monthly payments for up to three months. This won’t be
suitable for everyone but could provide much needed help if you need it.
Who to contact: The first step should be to contact your lender and tell them you are
experiencing payment difficulties. There will be a fast track approval process in place and
you won’t be required to provide evidence or have an affordability test. So, you should get a
quick decision. Although any unpaid interest will probably still need to be paid back you
won’t have to worry about any additional fees or charges. Individual credit ratings should not
be affected but if you are worried you should speak with your lender.
It’s likely the lender will spread your outstanding payments over the outstanding term of your
mortgage, so you will see an increase in your monthly mortgage payments. The shorter the
term left on your mortgage, the larger the increase in your monthly payments, once the
mortgage payment holiday is over. You should consider the impact this will have on your
future financial commitments.
Your lender may also offer other options if they are more appropriate for your circumstances.
It’s possible some lenders will consider increasing the length of your mortgage term. For
some making interest or capital only payments may be an option. In any case you should
speak to your lender or mortgage advisor and ask them to provide an explanation of what
this will mean for you and understand any other options which may be available to you.
Being currently behind with your mortgage payments does not exclude you from applying for
a mortgage holiday if this is appropriate for your circumstances. Those worried about
repossession should not be at risk of losing their homes during this period but do speak with
your lender. If you have a mortgage with an unregulated or inactive lender and would not
normally fall under the scope of these changes, it is understood your provider will adopt this
guidance on a voluntary basis.
24Eligibility: Whether you are eligible to take a payment holiday, for how long, and the
conditions you must meet first will depend on:
Your lender
The mortgage contract, and
Your financial circumstances
Often, in order to qualify for a payment holiday, you’ll need to have previously overpaid on
your mortgage.
That means paying more than your agreed monthly payments until you have built up
sufficient credit to take a break from payments.
However, your lender might also allow you to reduce or suspend mortgage payments if
you’re temporarily struggling to meet the monthly cost due to a change of circumstance,
such as redundancy or going on maternity leave.
If you’re in mortgage arrears you won’t be eligible for a mortgage payment holiday.
But don’t let that stop you contacting your lender. They will be keen to help you come to an
arrangement.
How to apply for a mortgage holiday
Check with your lender and have a look at your mortgage terms and conditions to see if
you’re eligible for a mortgage holiday and if they are allowed under your mortgage
agreement.
The criteria will vary from lender to lender:
The length of your payment holiday depends on the lender. Some will allow you take up to
12 consecutive months off from paying the mortgage, while others will permit only up to six
months over the life time of the mortgage.
Typically, you will often have needed to have made payments on time for a minimum period
before you’re eligible to take a mortgage holiday.
Your ability to take a mortgage holiday also depends on the size of your mortgage and the
value of your home. Some lenders will only allow a mortgage holiday if the loan-to-value of
your mortgage is lower than 80%.
25SUMMARY OF THIS SECTION
• Intro And Context
• Tips And Advice
1. Address The Current Circumstances
2. Keep Up Community Management
3. Engaging Content Over Promotions
4. Come Together
5. Optimizing New Skills
This document does not constitute legal or financial or other advice from L’Oréal (UK) Limited and is not a substitute for obtaining
independent advice. No representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is
or will be accepted by L’Oréal (UK) Limited or any of its affiliated companies
26SOCIAL MEDIA TIPS FOR SALONS & SPAS DURING THE
COVID-19 CRISIS
COVID-19 SOCIAL CONTEXT
We at L’Oréal would like to support by providing you with a few tips to help you transition
your social media strategy in the current climate we are all facing together. These tips and
ideas are to help you stay connected with your community and offer new ideas on how to
keep the conversation going.
It is a challenging time for businesses and clients, so we want to arm you with some
thoughts and ideas to ensure you are supported.
HOW ARE SALONS OR SPAS AND THEIR CONSUMERS
CONNECTING RIGHT NOW?
Currently, we are seeing a huge surge in the number of people using web applications; this
includes all social media channels. Facebook, Instagram, Twitter, TikTok and Pinterest are
all seeing an increase in account usage and account creation. This shows that businesses
and clients are all looking to communicate with one another via alternative means rather
than face to face. You will have noticed an increase in the number of video calls and live
content if you have been spending any time on social media yourself.
Salons and spas across the UK and Ireland have begun to use social media to announce
their current position, whether they have temporarily closed already or are about to close.
Communicating through social platforms with updates has become key, especially at a time
when we are receiving daily changes to government instructions and aid.
Ultimately, it is your personal preference on how you wish to adapt your social media
strategy, but here is some tips and advice from our social experts that you may find useful.
SOCIAL MEDIA TIPS FOR SALONS AND SPA
It is important to take the time out to reassess our social media strategy. Social media is
typically very reactive, so particularly at this sensitive time we need to look at our tone of
voice, focus and priorities. Please find some of our top tips and ideas on how you could use
social media channels to stay connected to your customers and support the future of your
business.
1. Address The Current Circumstance
Your clients may be looking out on social to for an update on whether your business has
now closed, especially if they had an appointment coming up. We advise you to keep update
your community by posting on your social media feeds. You can let them know that you will
stay connected with them on social and any updates on reopening, for example. If you keep
posting your usual content without posting an update or if you post an update somewhere
27less permanent such as an Instagram Stories, then the message might not reach the clients.
Ensure all social/digital touch points for clients have the same consistent update.
If you do receive comments or messages that are negative around your current situation, it is
best to go back to the comments professionally outlining the measures you are taking. You
will find that you will predominantly receive support if you are clear.
2. Keep Up Community Management
CONSUMPTION IS ON THE RISE
Digital consumption is set to soar during the pandemic as everyone moves to digital
communication alternatives. Your community may begin to interact with you more as they
could be spending and increased amount of time on social media. You could use this as an
opportunity to get to know your audience even better.
Why not ask your audience directly what content they would like to see from you during this
time. They may suggest they would like advice for hair or skin care at home or how to
upkeep their colour, or they might want to hear from you personally about how they can help
support your business. Use all the platform tools such as Instagram Stories ‘ask a question’
button or Facebook Live to interact with customers in a new format that works for their new
lifestyle. There is an authenticity behind live content too that your customers will respect and
can help them to feel more connected with you during this time.
BE THE COMMUNITY PILLAR
Some clients will be more vulnerable than others during this time, and regular clients who
might see you on a weekly basis that take a lot from the social interaction they get from the
salon or spa. For some people, this could be the only interaction they have all week. You
may be able to reach them on social media to check in, or suggest a time to do a video chat.
Offering advice to these key customers will not only lift their spirits, but will keep their hair or
skin well cared for in-between visits.
REPURPOSE CONTENT
We often post content and then do not think we can ever use that content again. This is not
true: we can always find ways to repurpose content that we already have. Consider different
ways to repurpose your content:
- Re-share your top posts on Instagram Stories and ask followers to comment on their
favourite past posts
- Use past content to create a quiz on Instagram or Facebook e.g. What colour did we
take this gorgeous brunette in the build up to her wedding day?
- TBT – Throwback Thursdays are sure to make a comeback now, suggest when you
repost how your followers can maintain hair or skin before they return to the salon or
spa.
28You can also read
