January 2008 Archives
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This page contains all entries posted to Hairdressers Journal Interactive - Business in January 2008. They are listed from oldest to newest.
December 2007 is the previous archive.
February 2008 is the next archive.
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'A Sanctuary For Clients' - Paterson SA Leith
Posted by
Kate
Dated: January 7, 2008 12:13 PM
The latest Paterson SA salon in Leith Edinburgh is Jon Macleod's fifth venture.
The chosen unit was originally a furniture store and despite being rundown, was an open space that proved a perfect blank canvas for Jon and his team to work on.
Once he’d signed on the dotted line, Jon got the experts in to realise his vision of a super-cool salon.
The work took five weeks to complete and Jon feels that the stylish, simple salon is everything he and his team set out to achieve.
"Clients want a sanctuary to help them forget the stresses of every-day life and that’s exactly what we’ve created," says Jon.
Continue reading "'A Sanctuary For Clients' - Paterson SA Leith" »
Tags: Salon interiors
Tips For Taking Control of your Stock
Posted by
Kate
Dated: January 7, 2008 12:38 PM
Stock control is hardly the most dynamic or exciting element of salon management, but get it wrong and it will cost you much more than just a bottle of shampoo.
Francesco Group managing director Ben Dellicompagni shares his top tips for controlling stock.
- Be clear about what a good stock percentage should be and then separate your salon stock from retail. Salon stock should always be a steady percent of turnover, whereas retail stock is more flexible depending on whether you sell electrical products. At Francesco Group, we have a stock percentage guide that salon stock should run at about 7% and retail at about 3%.
- Salons should use the management information to ensure that there is a salon system for managing stock and that the key salon members are clear on their targets and how to achieve them.
- Speak to your product manufacturer. We work very closely with our manufacturer to ensure that stock levels are managed effectively and that the salon orders only what is required.
- Stock what you know is popular and will definitely sell. If you want a new line ensure that the team are fully educated on the range and know how to recommend and promote the products to clients.
- Use the stock facility on your computer system if you have one. Our system has a great stock program that allows salons to manage stock levels very closely. We have also invested in a program that provides the salon with information about the most popular ranges.
Staying On Top Of The Key Tax Deadlines
Posted by
Posted by
Kate
Dated: January 9, 2008 3:39 PM
Dated: January 9, 2008 3:39 PM
Keeping on top of deadlines is always a struggle, and when it comes to tax there are financial penalties for non-compliance.
Missing a deadline not only means penalties and interest, but it gives HM Revenue & Customs (HMRC) an excuse to trawl through your affairs. Here are the key dates for your diary.
Individuals | VAT | Employers | Companies
Individuals
January
31st - Deadline for tax returns for the tax year ended on the preceding 5 April. There is a £100 penalty if the return is not filed by this date - in the case of partnership returns, each partner is charged £100
Payment must be made from any balancing payment from the previous tax year covering the balance of:
- Income tax
- Class 4 National Insurance Contributions (NIC)
- Capital gains tax
It is the first income tax and Class 4 NIC payment on account for the current tax year. If any of this tax is paid late, the Revenue will charge interest on the unpaid amount.
Provided the return for the previous tax year was filed by 31 January, HMRC needs to notify its intention to enquire into the return by the following 31 January, unless it subsequently makes a discovery assessment.
This is also the deadline by which you need to make any amendments to the last return submitted.
February
28th - If there is any outstanding unpaid balance for the previous tax year, HMRC will issue a 5% surcharge on the unpaid amount. Interest will continue to accrue.
April
6th - The new tax year starts
July
31st - The second payment on account of the income tax and Class 4 NIC liability for the tax year just ended is due. Interest will run on any unpaid amounts as on this date.
If any of the balancing tax payment that was due on 31 January remains unpaid a a second 5% surcharge will be imposed by HMRC and interest will continue to accrue.
If the return that was due to be submitted on 31 January is not submitted by 31 July, a second fixed penalty of £100 is imposed (£100 per partner for late partnership returns).
September
30th - If you would like the HMRC to calculate your tax liability for the previous tax year, you will need to have submitted your tax return.
October
5th - Date to notify HMRC of your liability to pay tax if you have not been issued a tax return for the previous tax year. The maximum penalty for missing this deadline is the balance of the tax that is outstanding as at the coming 31 January.
December
29th - You must submit your return electronically via the electronic lodgement service by this date if you have a balancing payment of less than £2,000 and wish to have your tax collected through next year’s PAYE tax code.
30th - As above, if you are filing your form via the Internet.
VAT
A business needs to register within 30 days for VAT if its taxable supplies at the end of the month in the year then ending exceed the threshold, or at any time if it is expected that taxable supplies will exceed the threshold in the next 30 days.
The penalty for late registration is a percentage of the VAT due (or £50 if greater). The rate of the penalty is:
- 5% where registration is up to nine months late
- 10% if nine to 18 months late
- 15% if over 18 months late.
VAT returns need to be submitted to HMRC by the end of the month following the quarterly return period. Any VAT due must also be paid by this date (a seven-day extension for return submission and payment is given for businesses that pay electronically).
A default penalty surcharge system applies if the VAT return is filed late or VAT is not paid on time. Where all VAT is paid on time, but the return is submitted late, there is no surcharge, but HMRC will record the default.
The penalty is the greater of £30 or the following percentages of outstanding VAT:
1st default in surcharge period 2%;
2nd default in surcharge period 5%;
3rd default in surcharge period 10%;
4th default in surcharge period 15%;
5th default in surcharge period 15%;
and further defaults 15%
Employers
There are a number of compliance deadlines that are relevant to employers:
April
All PAYE income tax and NIC for the tax year ended on the preceding 5 April need to be paid by 19 April otherwise interest will begin to accrue on the unpaid tax.
Large employers (those with 250 or more employees) need to make monthly electronic payments by 19th of the month in which each period ends.
A system of automatic surcharges applies if payments are persistently not made in full by the due dates.
Employers whose average PAYE and NIC liability is less than £1,500 can opt to pay quarterly instead. Payments need to be made by 19th of the month in which the relevant period ends (22nd of the month for quarterly payments made electronically).
The quarterly payments are due in July, October, January and April.
May
Employers need to submit forms P14, P35, P38 and P38A return for the year ended 5 April, by the following 19 May. Failure to do so will result in penalties as follows:
(a) a penalty equal to the monthly amount for each (part) month the delay continues, up to 12 months, and
(b) a penalty of up to the amount of PAYE or NIC payable which was unpaid as at 19 April following the tax year.
The monthly amount is £100 for every 50 employees (apportioned for any part).
Employers need to issue forms P60 to all their employees by 31 May.
July
Employers need to submit forms P11D, P11D(b) and P9D for the year ended 5 April to HMRC by 6 July. Copies of the forms P11D and P9D need to be issued to their employees.
A penalty of £300 per form is imposed if these are filed late, with a further charge of up to £60 per form per day for any continued delay.
The 6 July is also the deadline by which relevant third parties need to give information on benefits and/or expenses that they have provided to employees.
Employers also need to inform HMRC of any termination payments made in excess of £30,000 and provide details of all share schemes by this date.
PAYE settlement agreements (PSAs) must be finalised by 6 July following the tax year.
The deadline by which employers need to pay all Class 1A NICs in respect of benefits in kind provided to their employees is 19 July following the tax year.
October
Any income tax and Class 1B NICs payable in respect of a PAYE settlement agreement is due by 19 October following the tax year to which the PSA relates.
Employers must inform HMRC of any changes in the car and fuel benefits received by their employees by submitting a form P46(car) by 2nd of the month following the quarter periods ending on@ 5 November, 5 February, 5 May and 5 August.
Companies
Just like individuals, companies have to comply with a number of self-assessment deadlines. However, these deadlines depend on when the company’s financial year-end is. The main ones are as follows:
The due date for small companies to pay corporation tax is nine months and one day following the end of the company’s financial year. Small companies are those with profits below £1.5 million (lower if associated companies need to be taken into account).
Large companies are required to make equal quarterly payments of corporation tax on the 14th day of the 7, 10, 13 and 16 month following the start of their financial year, based on an estimated corporation tax liability equal to that for the previous financial year.
Companies need to submit corporation tax self-assessment return forms CT600 within 12 months following the end of the financial year.
- Late returns incur a penalty of £100 if they are submitted within three months of the filing deadline
- A further £100 penalty is incurred if the return is submitted later (penalties are raised to £500 and then £1,000 for a third consecutive offence)
- Tax geared penalties are imposed if the return is not submitted within 18 months from the end of the return period.
If a company is chargeable to tax and no return has been issued, it needs to notify HMRC within 12 months of the end of the financial year. Otherwise, a penalty equal to 100% of any tax unpaid 12 months after the end of the financial year will be incurred.
HMRC can enquire into a return within 12 months of the filing date and the company can amend its return within the same period.
Companies’ CT61 quarter periods end on 31 December, 31 March, 30 June and 30 September for which any income tax due is payable by the 14th of the month following the end of the period.
The corporation tax financial year ends on 31 March.
Tags: tax
Employer Champion Seeking Support For New Diploma
Posted by
Posted by
Kate
Dated: January 9, 2008 4:28 PM
Dated: January 9, 2008 4:28 PM
Habia have appointed top industry trainer and business expert Gill Morris as their Employer Champion for the new Diploma in Hair and Beauty Studies.
Her role is to spend the next 12 months highlighting the benefits the Diploma will bring to businesses, both large and small, as well as representing employers’ interests to government.
Gill will also be aiming to get employers involved in the consortia that will deliver the Diploma to young people across England, as well as encouraging employers to get involved in other ways, such as:
- sharing expensive equipment, making it more affordable for businesses, schools and colleges to benefit from the latest technology
- working with schools and colleges to help develop a curriculum, train staff, give talks and carry out demonstrations
- providing work experience placements, which would give employers the opportunity to help young people as well as building connections with them and their schools.
Gill recently met with Schools Minister Jim Knight at the National Educational Business Partnership Network (NEBPN) conference to ensure that hair and beauty is not overlooked in further Diploma developments and in upcoming promotional activities.
Speaking after the event, Gill said: "The Diploma in Hair and Beauty Studies is going to have a huge impact on our industry, so it is important that employers fully understand how it will work and what it aims to achieve from day one.
"It is only natural that businesses will have questions, but my role is to assure them that they will be involved in every step of the development, and that the end result will very much be designed to meet the needs of employers in relation to young people and skills."
Tags: Diploma in Hair and Beauty Studies , habia
'Classic But Contemporary' - Lavant Rowe Hairdressing
Posted by
Posted by
Kate
Dated: January 11, 2008 9:46 AM
Dated: January 11, 2008 9:46 AM
Lavant Rowe Hairdressing is Stephen Hartshorne and Chris Scott's first salon venture.
The duo wanted a salon that was a mixture of the classic and the contemporary with a French chic edge that firmly targeted the top end of the market.
With little structural work to do, they set about creating three clearly defined areas: a waiting/reception/retails area; a wet area and a cutting/consulting area.
They selected a classy colour scheme of Roman white paint, silver and black feature wallpaper and mottled cream and terracotta floor tiles and were helped by Rima Designed Environments who came up with the bespoke furniture and added the finishing touches.
"We think we've achieved a balance of contemporary and classic design with a French boudoir twist." explains Chris.
Continue reading "'Classic But Contemporary' - Lavant Rowe Hairdressing" »
Tags: Lavant Rowe Hairdressing , salon interiors
Beautiful Boutique Chic - Errol Douglas
Posted by
Posted by
Kate
Dated: January 17, 2008 11:54 AM
Dated: January 17, 2008 11:54 AM
Errol Douglas has been coiffeur to the Chelsea set and various ubiquitous celebrities at his swanky Knightsbridge salon since 1998.
Now, after nine years of building a reputation as one of the UK’s leading Afro and European stylists, Errol has turned his attentions to revamping the bricks and mortar of his business.
The refurbishment to create a modern, galleria-style salon spanned two months and came with a hefty £100,000 price tag.
Errol says: "The worst part was the length of time it took as the project ran over by quite a lot. But I think we’ve achieved our goal to create a gallery-style salon that’s calming and not too fussy."
Continue reading "Beautiful Boutique Chic - Errol Douglas" »
Tags: Errol Douglas , salon interiors
The Hairdressing Calendar - Dates For Your Diary
Posted by
Posted by
Kate
Dated: January 17, 2008 2:56 PM
Dated: January 17, 2008 2:56 PM
March | April | May | June | September | October | November
Got a hairdressing event you would like us to add to the calendar? Email details to hji@rbi.co.uk
Tags: British Beauty & Spa Awards , British Hairdressing Awards , British Hairdressing Business Awards , Salon International
Implementing a Skin Allegy Testing Policy
Posted by
Posted by
Kate
Dated: January 18, 2008 11:28 AM
Dated: January 18, 2008 11:28 AM
Over the past 12 months, one of the most debated issues in the hair industry has been whether to perform a skin allergy test before applying colour.
Salons have a legal obligation under section 3 of the Health and Safety at Work Act to put client safety foremost and industry guidelines from the Cosmetics, Toiletery and Perfumery Association state that a skin allergy test should be carried out at least 48 hours before applying colour to clients’ hair
However, having to turn away clients who want to book spontaneous appointments or those who say that they simply don’t have time to take a test is an inevitable downside of a responsible policy.
Nergish Wadia-Austin, who provides management Management Training Seminars to L’Oréal’s Prestige Account Customers, including Toni and Guy, Charles Worthington, Nicky Clarke and Trevor Sorbie, explains how you can best handle clients who object to skin allergy testing.
Continue reading "Implementing a Skin Allegy Testing Policy" »
Tags: skin allergy testing
'Chic Minimalism' - Lisa Shepherd
Posted by
Posted by
Kate
Dated: January 28, 2008 3:07 PM
Dated: January 28, 2008 3:07 PM
Having made up her mind that it was time for a change, Lisa Shepherd overhauled her Kidderminster-based salon in just a week.
"I wanted to bring everything bang up to date," she says. "After being open for five years I thought it was important to move forward and to re-excite clients and staff."
Lisa looked to add a contemporary feel in the style of New York-based hotel designer Ian Schrager and was determined that she would create a design that engages customers and inspires the salon’s 28 staff. "It’s important clients get excited by the salon and also that staff love working in it."
Among the many focal points making the salon stand out, is Lisa's own favourite feature: "The dining table top was the best buy of the re-design. I had it made to feature our press coverage - it gives the clients something to read while having a coffee."
With the work at the Kidderminster salon complete, she may now take her creative energy further afield. She adds: "It is a look that will follow through to our other salons as they open."
Continue reading "'Chic Minimalism' - Lisa Shepherd" »
Tags: Lisa Shepherd , salon interiors