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29 June 2021
Adviser’s concern over abuse of bounce back loans.
Bounce back loans
Many of my clients have taken bounce back loans (BBLs). For most they have been a lifeline but there are some who appear to have withdrawn funds from their companies and use them to buy personal assets or pay off personal debt.
Doing this creates an overdrawn loan account and CTA 2010 s 455 tax. The advice from the man in the pub is that all you have to do is not file accounts or tax returns and let the company be struck off. Owner-managers did not have to give personal guarantees for BBLs and the ‘word on the street’ is that in most cases insolvency practitioners will not think it economic to try to recover the loan account or the original loan and that HMRC will not even know about the s 455 tax and even if it did will not chase...
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