Bounce back loan and tax return

apples24

I’m just a small sole trader

my returns online are simple and easy for me to do each year 

I took out a BBL few month back  and the money is still sat in my business account

so I took the loan 13/5/20 so it’s not inc in 2019-20 that I complete end this year 

but next end next  year what do I do if

A keep the loan start paying at 2.5% does the 10 count into my income? 

If I pay it back before the 12 months  is it just a simple 10 as income 10 as expenditure? 

Thankyoy 

apples24

Next question

a 10,000 bounce back loan

copy pasted

This means you don't need to make any payments for 12 months. You must then make 60 monthly repayments of £166.67. You must also pay interest that we charge for each month. These payments start 13 months after we pay the loan to your account. You must pay any amounts outstanding on your loan (including interest) on your final repayment date. This will be 72 months after we pay the loan to you.


so am I paying the £166.67 a month plus a amount of interest? 

2.5 per annum over 5 years is 10 percent so that’s £1000 on a £10000 loan? 

Slightly confused 

Petriix

Interest is calculated based on the outstanding capital each month. It starts off at £20.83 per month on the full £10k balance (after the first 12 months interest free period) and gradually reduces as you pay off the capital. The total interest over the 5 years will be about £635. Your payment will be £187. 50 initially and reduce by 35p per month. 

See here for a calculator: https://www.uktaxcalculators.co.uk/tax-guides/business-tax/bounce-back-loan-calculator/

apples24

it says 60 x £166.67 on mine

thats what confuses me

i pasted it above 

Petriix

apples24 said:

it says 60 x £166.67 on mine

thats what confuses me

i pasted it above 

It's 60 x £166.67 plus interest (which starts at £20.83 - hence the £187.50 first payment). I really don't know what's confusing. Put £10k into the calculator I linked to and it will show you details of all the payments.

apples24

Got you

thsnks