Autumn Budget 2024: How Slick Can Help
Summary of the changes that affect you and how Slick can help you boost profits
What you need to know?
The increase in Employment Allowance will mean smaller salons pay less National Insurance which is good news! Changes to NI and business rates plus a rise in Minimum wage mean that business owners increasingly need to focus on driving earnings to offset the higher costs.
If you're not using all the free tools in your subscription, book a call with your Business Coach
The Budget Explained
Our Head Business Coach, Pia, walks you through the key policies and the key role Slick plays in boosting your profits.
National Insurance
The Employment Allowance rises from £5,000 to £10,500. This will move many smaller salons & barbershops out of paying National Insurance
Employers National Insurance will rise from 13.8% to 15% from April 2025
The threshold at which businesses start paying National Insurance falls from £9,100 to £5,000 from April 2025
Minimum Wage
National Living Wage for those 21 years & older will rise to £12.21 per hour from April 2025
National Minimum Wage for 18-20 year-olds will rise to £10 per hour from April 2025
Apprentices' hourly pay will rise from £6.40 to £7.55
Business Rates
The current 75% discount to retail, hospitality and leisure rates will be replaced by a discount of 40%- up to a maximum discount of £110k. This applies to Hair and Beauty salons
Corporation Tax remains capped at 25%
How Slick can boost profits
1. Reduce National Insurance bill
If you process tips via Payroll then you need to stop NOW!
Tips processed by payroll attract National Insurance and at the new rate, this adds to your tax bill.
Set up SlickPay Tipping to send all tips- for employed or self-employed staff- direct to the staff members bank account
By paying directly, as if it were cash, the tip does not attract National Insurance & reduces your tax bill.
Your staff earn more too as the tipping prompt increases tips by up to 200%
➡️ Learn More ⬅️
2. Reduce card & accounting fees
According to our survey, 60% of salons could save money by switching to SlickPay.
With a built in tipping prompt, staff earn more. You cut costs.
You might also reduce your accounting bill too: with an all-in-one system, there are less mistakes so accounts are easier to produce.
More than one owner has fired their accountant to save money as balancing the books with Slick is...well slick!
3. Move to a Self Employed Model
Popular for many owners is to move employed staff to a self-employed model.
Whilst you may need to get professional accounting & legal advice, a key part of this is ensuring Self Employed receive their own payments and pay their own fees.
Slick is the ONLY software to split payments and send earnings and tips direct to a Self Employed bank account.
This means their earnings do not touch your books and they pay their fees.
By using PIN codes, chair renters can access their own takings/reports and nobody else's.
4. Increase team productivity
The average salon fills 7 out of 10 slots.
With higher wages & more tax, you are paying MORE for your staff to sit and do NOTHING.
The most profitable salons fill every slot for every staff member.
Don't say you can't do it: Kerry from Numero Dix shared her tips HERE
Use your free marketing credits to nudge clients to fill slots
500 marketing credits generates £1,300 of bookings on average!
If you don't use your credits, book a call with your business coach who will share top tips to get bang for your buck
➡️ Templates to inspire you ⬅️
5. Reduce stock costs
Not controlling your stock spend is an easy way to losing money.
3 tips
- Track every product used and sold.
- Review what you use & only order what is necessary. Don't order colour shades that 1 client uses.
- Unused or old stock is valuable cash. Use it or sell it on to free up cash you can use elsewhere.
➡️ Learn how to track stock usage ⬅️
6. Passive income streams
Let's do more with less to boost earnings! Passive income or earning money while you sleep is where it's at!
Gift vouchers are a great way to get clients to spend more.
Slick even allows you to sell these online at no extra cost so why not try this?
Retail is another opportunity to increase your average bill
Top tip: tell the client what products you are using then place 3 products on the styling station. Psychology clients are more likely to buy when presented with options!
Disclaimer: This article is for educational purposes and does not constitute legal, financial, or tax advice. For specific advice applicable to your business, please contact a qualified professional.
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