Bounce Back Turnover question

crazywithhelp

Grumpy_chap said:

It's fraud if you (knowingly) make an incorrect statement for gain. The gain being the low-cost loan. There may not be much checking upfront, but you can be sure there will be verification if you default and try to rely on the Government underwriting.

Why would anyone default on such a loan. The repayment is so slow a basic job could pay it off

gwc1

I’m not the original poster so I’m not sure what you mean?
If you’re self employed there should be no difference in personal or business borrowing as YOU are the business!
Look, I’m not going to labour the point what the original poster asked but if you put in a lager turnover ( within reason) it’s hardly the crime of the century especially bearing mind these are LOANS! This is exactly how the self employed roll, ask them exactly how they struggle to get a mortgage!
Obviously if you default questions will be asked but that applies to any loan and putting a larger turnover down won’t be a separate crime!
Common sense please .....

Jeremy535897

Technically it is fraud to give knowingly false information on an application form for a loan. Whether or not the applicant gets away with it, for whatever reason, is not the point. Why ask the question in the first place?

If you make up your self employed accounts to 31 December every year, that is what goes on your tax return, not an apportioned amount April to April.

qprjones

I was self employed for the second half of the 18/19 tax year. My turnover was £14,500 so I could apply for around £3600 
My question is simular to the original. If I was to apply for £5-6k as it would help me to clear debts that I have, enabling me to earn more in the future becuase I could afford to train more (to learn a new trade) without worrying about money as much. 
Would I be likely to accepted? I know technically it's more of a percentage than stated in the terms but I'm not going to get another chance to get such a loan rate anytime soon. 

Jeremy535897

I would speak to them, point out that your 2018/19 turnover only represented 6 months, so could you apply for 50% of that? Or if you have 2019/20 figures, ask if they will accept that figure, but they might ask you to file your tax return for 2019/20 first.

dunstonh

QUESTION....would it be wrong to claim more than my turnover to get more loan.

Yes. it is called fraud.  

I have read they don't check or require proof of turnover

Because most banks can see what turnover went through the bank as part of their MI.    If your figure is in the tolerance of that, they know its likely to be correct and you give them no reason to be suspicious.      The AML guidelines still exist for BBLs.  So, if a bank suspects you are fraudulently applying for a BBL, they can still report you under AML guidelines.   AML includes tax evasion and benefit fraud and fraud full stop.  Fraudulently applying for a loan, even if backed by the Government is still fraud.

I have some debts built up from the business, but they are personal. To put it in comparison paying nearly 30% interest on most of it, which is what has been crippling myself and the business for a while.

Is this a limited company?  If so, then borrowing money on the company like this and then if the company fails, the liquidator could apply to have your personal assets seized.  The limited liability would not apply.

The projected turnover and actual turnover is pure conjecture anyway! How can anyone give an accurate figure given we have no idea what the future is?

It asks the actual turnover for 2019. Projected applies to businesses without a full year.

But it is a loan you would never be done for fraud as long as you pay it back.

This is the most likely outcome.  If it is repaid without issue then its unlikely ever to be looked at.  If the business fails or the debt is not repaid, then it will be looked at. 

I would speak to them, point out that your 2018/19 turnover only represented 6 months, so could you apply for 50% of that?

It is 2019 calendar year that is requested (bizarrely really as most companies will easily be able to see their business year, whereas many would have to work out calendar year)

Jeremy535897

For self employed people they look at the self assessment tax return figures.

Under_the_Radar_2

Jeremy535897 said:

I would speak to them, point out that your 2018/19 turnover only represented 6 months, so could you apply for 50% of that? Or if you have 2019/20 figures, ask if they will accept that figure, but they might ask you to file your tax return for 2019/20 first.

Pretty sure they have said for newly self employed the banks will take a projected figure, which potentially gives you a lot more creative power when it comes to your "turnover".

Jeremy535897

Under_the_Radar_2 said:

Jeremy535897 said:

I would speak to them, point out that your 2018/19 turnover only represented 6 months, so could you apply for 50% of that? Or if you have 2019/20 figures, ask if they will accept that figure, but they might ask you to file your tax return for 2019/20 first.

Pretty sure they have said for newly self employed the banks will take a projected figure, which potentially gives you a lot more creative power when it comes to your "turnover".

Yes, but 2018/19 is hardly new.