Bounce Back Loan - Newish Self Employed

confused.com2

Good Evening,
I went self employed from August 2018, filed a return in January 2019 with not much profit, under £1,000 as it was a slow build up and I spent a fair amount on advertising and a vehicle. A much better year followed and my accounts are much healthier for 2019/2020, no major outlays. I've not been entitled to any self employed grant due to when I left PAYE and started my business. I thought I might be entitled to the bounce back loan but reading a few comments and it seems they'll look at my 2018/2019 tax return and I'll be entitled to nothing as no profits? Does anybody know if this is the case, read some information that they'll accept estimates.

I was made redundant in 2018 after 22 years full time employment and I keep slipping through the cracks with all help.

Thank you.

The_Flump

Profits have nothing to do with it, it is 2019 turnover that is relevant for BBLS.

Jeremy535897

Work out what your 2019 calendar year turnover is, and use that. That's normally what they look at. 

confused.com2

Thank you. When you say 2019 turnover, do you mean the year running Jan 2019 through to Dec 2019 or the tax year? 

Grumpy_chap

Your assessment that SEISS gives you nothing seems correct - even the small 2018-19 profit is probably no help because the 50% income threshold is unlikely to be met as you were PAYE up until August.  SEISS does not take 2019-20 into account.

BBLS takes 2019 turnover (not profits) which is a self-declaration.  I understand that the predicted turnover basis is for new businesses only that do not have a full-year turnover to do the calculation on.  The loan can then be 25% of the turnover.

I assume you don't have any property for the business.

Other support may be possible with delays to tax payment and loan / mortgage payment holidays (though these work out expensive in the long-term).

Beyond that, it is UC.

confused.com2

Thanks Grumpy Chap.
I'm just trying to see if it's worth applying as my bank aren't offering it so first I'll need a new account with a new bank (HSBC seem the only option) and if I'm not going to be entitled there's little point in the effort.
I can supply the turnover for 2019 however what proof would I have to provide? My whole accounts?! No, no property, just a vehicle.

Sadiy no UC either as my partner is still working and above the threshold. Our income has dropped by £500 per week since lockdown and it's getting a bit tight now!

Thanks for the help.

Jeremy535897

confused.com2 said:

Thank you. When you say 2019 turnover, do you mean the year running Jan 2019 through to Dec 2019 or the tax year? 

January to December, according to posters on here.

Grumpy_chap

Yes, it seems to refer to 2019 calendar year.  The FAQ does leave room for interpretation:

"How much can I apply for?

Businesses can apply for between £2,000 up to 25% of their turnover. The maximum loan available under the Scheme is £50,000."

It would be difficult for some companies to use the 2019-20 tax year as the annual turnover because accounts may not yet be available.  In many cases, the difference between calendar year and FY turnover would make hardly any difference so it would hardly matter.  I think the most important thing is to self-certify based on something that you can substantiate.

Given that, for a new business, the rules allow for a predicted annual turnover, which would obviously be the future, then there is some interpretation on what annual period is used for established business that do have a true turnover figure available.

The other option is to look up the actual legislation to see if it is clearer than the FAQ.  Or make enquiries of the bank you are applying through before doing the application.

Hope that helps and good luck.

confused.com2

Thanks for all the help, I may hang fire and keep checking on other peoples experiences. Seems it's open until November so no immediate rush.

Brickledons1

Can anyone throw any light on Metro Bank and Bounce Back loans, there are 17 approved lenders, but no none at Metro will give any dates nor will British Bank, thousands of Metro business account holders are being treated very badly, just want some news good or bad, if they are not to be accredited then we can shut our accounts and try elsewhere, although we will be at the back of the queue at HSBC and or Starling, so now funds wont be available until around mid June at this rate, so much for Rishi announcing on 27th April that from 4th May you can apply and receive funds in 24 hours. Dangle a lifeline and don't follow it through, appalling situation. News welcome.

whizzywoo

Brickledons1 said:

Can anyone throw any light on Metro Bank and Bounce Back loans, there are 17 approved lenders, but no none at Metro will give any dates nor will British Bank, thousands of Metro business account holders are being treated very badly, just want some news good or bad, if they are not to be accredited then we can shut our accounts and try elsewhere, although we will be at the back of the queue at HSBC and or Starling, so now funds wont be available until around mid June at this rate, so much for Rishi announcing on 27th April that from 4th May you can apply and receive funds in 24 hours. Dangle a lifeline and don't follow it through, appalling situation. News welcome.

You have posted on the end of someone else's question which is different to yours.  Please start your own thread to avoid confusion.