Bounce back loan

moulins123

Grumpy_chap said:

I think, but please don't quote me, the bounce back loan uses self-certification.

Also, if you have a business bank account, that will allow your bank to verify.

Thanks for the quick reply. 
I don't have a business bank account, I was waiting to see whether the self emplyment was viable before making it 'official' and in any case, I would be reluctant to pay fees on a business bank account and just used my ordinary current account. 

Jeremy535897

Grumpy_chap said:

I think, but please don't quote me, the bounce back loan uses self-certification.

Also, if you have a business bank account, that will allow your bank to verify.

From a thread relating to Starling Bank,  I recall that they wanted to see the tax return for 2018/19, but for new businesses, they required a VAT registration number or, failing that, a 2019/20 tax return.

Grumpy_chap

You started self-employment last summer.  By now, you must have some evidence of trading, such as marketing activity, invoices and bills that show self-employed trading rather than just personal activity.  Also, you could submit your 2019 - 20 tax return with the appropriate declarations under self employment. 

As I understand it, though, initially, it will be self-certification / self-declaration but it does seem sensible to know how you would provide evidence if you needed to do so for a retrospective audit.  I am not aware that anything has been said about this, but it seems reasonable that there would be some kind of audit put in place, especially if there are people or companies that default and the Government guarantee comes into effect.  As a tax-payer, I would expect at least some verification then that the initial claim was not fraudulent and that the individual/company really could not make payment of the loan, otherwise we might just as well give everyone in the country who says they started a business before March a generous loan of £50k based upon forecast turnover.

Joleen23

pedropony100 said:

Hi there, I wonder if anyone can advise me- I am self employed, and a sole trader. I have been using savings to get through this period of having no business, and periods of self isolation. If I take advantage of the bounce back business loans that are now on offer, to replenish my savings, (I am saving for a deposit on a house) will this affect my ability to get a mortgage? 

Does the fact that the loans are 100% guaranteed by the government go in my favour?
thanks in advance!

Hi pedropony100
Did you find any information about wether a bounce back loan would affect your mortgage application? Many thanks