Coronavirus bounce back loan

[Mottie]

Anyone got one? I just took one out, easy as pie, no interest for first year and can be paid off anytime. Might as well have a reserve chunk sitting there in case it’s ever needed. Can always give it back before I start paying interest if I don’t use it. The loan is in the limited company name anyway so if I do use it and the company dies, the loan dies with it. Win win really.

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

 

[EFLImpudence]

...but of course you're not a benefit scrounger.

 

[charliegolf]

...but of course you're not a benefit scrounger.

Tee hee!

 

[Notch7]

Is there no personal guarantee?

 

[EddieM]

Anyone got one? I just took one out, easy as pie, no interest for first year and can be paid off anytime. Might as well have a reserve chunk sitting there in case it’s ever needed. Can always give it back before I start paying interest if I don’t use it. The loan is in the limited company name anyway so if I do use it and the company dies, the loan dies with it. Win win really.

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

How would you take the money out?

 

[Notch7]

How would you take the money out?

directors loan account

HMRC take a dim view of DLA accounts with a debit balance

 

[EddieM]

directors loan account

HMRC take a dim view of DLA accounts with a debit balance

Personally I wouldn't want to go there, HMRC are on my case enough as it is, they detest IT contractors.

 

[Mottie]

How would you take the money out?

Salary.

Is there no personal guarantee?

Not for a limited company. Maybe a sole trader or unincorporated company. Anyway, just playing devils advocate here and seeing who bites.

 

[EddieM]

Salary.

Oh dear, you just changed the legal position there.

 

[Mottie]

Oh dear, you just changed the legal position there.

How? To be honest, I doubt I’d ever use it but it’s there in case I did need to. Even if I did, it would be interest free for the first year and at a fixed rate of 2.5% for the next 5 years. Compares favourably with the fixed rate of 11.53% from the same bank. It’d be silly not to as a limited company.

 

[Mottie]

It’s parked in my reserve account earning interest as we speak.

 

[EddieM]

It’s parked in my reserve account earning interest as we speak.

Personal or business account, what's your interest rate?

 

[Mottie]

Personal or business account, what's your interest rate?

Business account of course, it’s company money. Dunno about the rate, probably something pretty poor I’d imagine. Anyway, just off to the Supercars showroom. https://www.thisismoney.co.uk/money...-Loans-splashed-supercars-insiders-claim.html

 

[EddieM]

Business account of course, it’s company money. Dunno about the rate, probably something pretty poor I’d imagine. Anyway, just off to the Supercars showroom. https://www.thisismoney.co.uk/money...-Loans-splashed-supercars-insiders-claim.html

0.01% then probably. By all means, fill your boots, if fraudulent, hope you enjoy prison food.

 

[Mottie]

0.01% then probably. By all means, fill your boots, if fraudulent, hope you enjoy prison food.

Will do. I’ll probably earn enough to buy myself a Big Mac meal (supersized) for Christmas.