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Mar 2020

Coronavirus

To trade or not to trade: Harrogate businesses facing a tough decision

Published: 31 Mar 2020, 15:47 BST

by Connor Creaghan

Ever the optimist, she sees this as an opportunity to build up the business' direct sales but she believes that the government should be doing more to support limited companies like hers.

Rachael Dunseath is the founder of Myroo Skincare.

Businesses in the Harrogate district set up as limited companies face a tough dilemma during the coronavirus lockdown.

Set up in Harrogate back in 2010, Myroo Skincare is now well-established for selling plant-based and cruelty-free products for sensitive skin.

But Myroo Skincare's director Rachael Dunseath believes her business falls through the cracks on government support.

So far, the government has announced that businesses will be entitled to:

£10,000 for those eligible for small business rate relief

£25,000 and a 12-month business rates holiday for eligible retail, hospitality and leisure businesses

The opportunity to furlough workers with the government covering 80% of their pay

Self-employed grants up to 80% of their average monthly profit up to £2,500 a month

Rachael's skincare business is not eligible for grant funding because she has no shops. She has no employees, other than herself, to furlough. As a limited company, she cannot claim the self-employed grant.

This is where Rachael's dilemma comes into play. She could potentially put herself on furlough but because she is the sole employee it would put her business on ice.

Coronavirus has been tough for many businesses, with most of the spas and shops Myroo Skincare usually supplies now closed for the foreseeable future.

That means that around 60% to 70% of Myroo Skincare's sales have suddenly stopped.

Ever the optimist, Rachael sees this as an opportunity to build up the business' direct sales but she believes that the government should be doing more to support limited companies like hers.

She told the Stray Ferret that people do not set up limited companies to get tax benefits but for protection, in case the business fails.

"I hope that I can keep the business ticking over solely through direct sales until the lockdown is over and some of the businesses I supply start to open again. Sadly, I think this is going to change the High Street dramatically. There are plenty of empty shops in the Harrogate district and many were struggling before this. I just cannot wrap my head around it. I cannot fathom how Harrogate will look after coronavirus."