Bounce back loan

Grumpy_chap

Grumpy_chap said:

It is my understanding that a business has to register for VAT once the VAT-threshold (£85k) is reached, irrespective of whether the turnover is VATable or not.  I am quite happy if I am informed my understanding is incorrect as then I have learned something  . 

I just looked this up on the .gov website and my understanding was incorrect.  VAT-registration is only required if VAT-Taxable turnover exceeds £85k threshold, but VAT-exempt items are excluded from the VAT-Taxable turnover.  I did not realise that before.

Jeremy535897

Grumpy_chap said:

dunstonh said:

VAT registration threshold is £85k and maximum loan is 25% of turnover, so any loan application above £21.25k should be to a VAT-registered business.

What about businesses that are not VAT registered as their turnover is not VATable?

Not all income is subject to VAT.

It is my understanding that a business has to register for VAT once the VAT-threshold (£85k) is reached, irrespective of whether the turnover is VATable or not.  I am quite happy if I am informed my understanding is incorrect as then I have learned something  .  @Jeremy535897 will probably be able to confirm.

For the BBLS, applications for companies or sole traders with trading history are based on past turnover, which can be verified relatively simply by the banks.  The VAT-registration would just be a hurdle for those new sole-trader businesses claiming to have started 28th Feb and declaring projected turnover of £200k and asking for £50k loan straight off the bat.

@Jeremy535897 - I do so hope that the Government will pursue with vigour any defaulters under this scheme.  And thank you for your kind comments.

As with all of these things, it's never quite as simple as it sounds. Supplies can be zero rated, reduced rate, standard rated, exempt, outside the scope, reverse charge etc etc, but most businesses that would qualify for a bounce back loan will make standard or zero rated supplies, and these count towards the £85,000 registration limit. On projected turnover, if you projected it would be £200k a year, and turnover was spread evenly over the year, you would not actually need to register (assuming you achieved that turnover) until about month 6 (although you might want to register earlier). But we are getting well off the point of this thread.

chez6911

Thanks everyone as for vat threshold is 85k 
Just going to hang on to the loan to see what happens rest of this yr hopefully we will be bigger n better and give the money straight back 

lurch250f

I tried and was accepted I'm debating to pay my personal debt then just have business debt to deal with dropping 5 bills a month down to 1 that's 150 quid cheaper a month will put me in a much better position to concentrate on my company.

davetheraver

Grumpy_chap said:

Grumpy_chap said:

It is my understanding that a business has to register for VAT once the VAT-threshold (£85k) is reached, irrespective of whether the turnover is VATable or not.  I am quite happy if I am informed my understanding is incorrect as then I have learned something  . 

I just looked this up on the .gov website and my understanding was incorrect.  VAT-registration is only required if VAT-Taxable turnover exceeds £85k threshold, but VAT-exempt items are excluded from the VAT-Taxable turnover.  I did not realise that before.

Some business types are also exempt from VAT

davetheraver

harryharry305 said:

I wonder if any of these loans will ever be paid back

If Santander ever pay mine, I have every intention of paying it back. I will be using it as a cash injection for my business and help it grow, and aim to pay it back a lot quicker.

Its the people have no intentions of using it for their business, and will just have a jolly up with it, that have no thought about paying back.

Its irresponsible lending, and these people would never have been trusted with even a overdraft, let alone up to £50k. Now irresponsible people are having access to large cash amounts.

Mitchel.

To be honest ill step out in to the firing line Im wanting the loan to buy new equipment that I wouldn't be able to buy due to my company being so young with out lots of trading history or being hacked with 16% interest on financing equipment.  hopefully I get it but Ive not got to the paper application stage with any of the banks ive applied for accounts with starling, HSBC feeder and tide.