. The Bounce Back Loans scheme remains open and now has 28 participating lenders, all of which charge interest at the agreed rate of 2.5%. If you’ve realised the company is no longer viable and you want to close it down, that’s understandable. So if you want to 'shop' the client to HMRC you first need the client's consent to your doing that. Director currently has an overdrawn loan account and mentioned that they intend to declare a bonus through PAYE to clear the loan and then let the company fold (with zero intention of repaying the 2x BBLs). COVID hits AML compliance: are you up to speed? This category only includes cookies that ensures basic functionalities and security features of the website. Nothing yet to report to HMRC Makes me so so angry. No information should be provided to HMRC about the client's financial affairs without the prior agreement of the client. This means that if you canât pay back what you owe, the government will step in as your guarantor and take over your payments to your lender. Much appreciated Would ⦠Lines are open Monday-Friday 09:00-17:00 (excluding Bank holidays). The banks don't do any work on vetting these applications - why would they, they're not on the hook when the loans default! Find out more about solvent and insolvent liquidation options for UK limited companies. Crucially, these loans come with a 100% government-backed guarantee â unlike the 80% guarantee promised under the CBILS. The attractiveness of the Bounce Back Loan is without doubt â 6 year term, no repayments in the first year and 2.5% interest. As the COVID-19 crisis deepens, many directors are discovering that bounce back loans havenât proved enough for the long term survival of their business. At risk of stating the obvious, the accountant has a duty of confidentiality to his client. All Bounce Back Loans have these standard features. Bounce back loans DON'T affect your eligibility for other Government personal support. If youâre a limited company and have a loan with us already, you could apply for a Bounce Back Loan. We’ve helped 1000’s of directors navigate difficult financial circumstances. Yes, if you suspect (or more than suspect!) Is OP clear of consequences if he just informs the people who really only care about terrorism and big sum international fraud? What is a Bounce Back Loan? If you need help understanding the best way forward for your company, use the live chat during working hours, or call us on 08000 746 757. In this article, we’ll explore this question, and the implications for directors. HMRC can indeed reisntate a company if it’s been struck off incorrectly, and this can happen at any period in the future. It’s a logical line of enquiry if you’re concerned about the potential costs of liquidation, and you’re seeking a cheaper alternative to closing the company permanently. Is engaged in trading or commercial activity in the UK and was established by 1 March 2020; Does not already have a Bounce Back or CBILS loan (or in the process of applying for one with another lender) though you can convert an existing CBILS loan to a BBLS loan. How to apply for a Bounce Back Loan. The new coronavirus Bounce Back Loans scheme was announced in April as a result of the financial pressures the coronavirus pandemic has caused to many small businesses in the UK. If youâre a Director of a limited company, this means one per limited company or group.Two or more companies form a âgroupâ when one or more are subsidiaries of another, or when your companies come under the same holding company. By continuing to browse the site, you are agreeing to our. If I have already received a Bounce Back Loan, can I increase (top-up) my existing loan? Find out what you can do about creditor pressure, and what could happen if you ignore it. I hope the banks don't get paid out because it looks like they've not done enough work on these applications. As per this government site: ‘If your company has creditors, members, employees etc, you should inform all the necessary people before applying.‘. But probably months before the defrauded bank with second BBL finds out even though OP knew all along. [Updated 16.11.2020] On 2 November, following the news of the second lockdown, the government has announced existing loans can be topped up should they need additional finance. Government rules state that you may only have one Bounce Back Loan. Hezbollah critic Lokman Slim found dead in Lebanon. Thank you for your comments, they are most helpful. However the loan certainly could not be used to buy a personal car as that clearly breaches the condition that the loan will not be used for personal purposes! With an interest rate of only 2.5% per annum, and a loan term of 6 years, these loans were some of the best deals British businesses have seen in a long time. Company Debt is a trading name of Company Debt Ltd. Company Debt Ltd is a company registered in England & Wales under company number 06352368. The law pertaining to this can be found in Section 1003 (6) of the Companies Act which states that, even if struck off, “The liability (if any) of every director, managing officer and member of the company continues and may be enforced as if the company had not been dissolved.”. As the ⦠The registered office is Langley House, Park Road, London N2 8EY. We have noted from the records that he obtained a £50k bounce back loan in May and has spent the lot personally (mainly gambling, takeaways and a new Range Rover in his own name!). Well probably they don't pay the VAT either. Two arrested over alleged £500,000 coronavirus âbounce backâ loan scam. 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