Bounce back and C.I.S

Deanwil999

Hi, 
Has any one had any dealing with applying for the bounce back loan when on the construction industry scheme? 

As I’m self employed would I be eligible for this? I know people that are self employed and are eligible, the only difference being that they pay their tax at the end of the year and I pay my tax as I get paid. 

Thanks 

Grumpy_chap

If you are self employed and impacted by covid, then BBLS is a possibility.
I assume you have business bank account, etc.
Did you claim SEISS?
It is entirely possible to be self employed and within CIS.

Deanwil999

I was told by Barclays first that I would just need a business profile added to my account, but when I called they then told me I would need to apply for a business account which I have done and I’m waiting to hear back from that. 

Yes I was eligible for SEISS and applied for it.

Jeremy535897

Grumpy_chap said:

If you are self employed and impacted by covid, then BBLS is a possibility.
I assume you have business bank account, etc.
Did you claim SEISS?
It is entirely possible to be self employed and within CIS.

By definition if you have CIS deductions from your labour (as a sub-contractor) you are regarded as self employed, otherwise PAYE/NIC would apply.

Grumpy_chap

Jeremy535897 said:

Grumpy_chap said:

If you are self employed and impacted by covid, then BBLS is a possibility.
I assume you have business bank account, etc.
Did you claim SEISS?
It is entirely possible to be self employed and within CIS.

By definition if you have CIS deductions from your labour (as a sub-contractor) you are regarded as self employed, otherwise PAYE/NIC would apply.

I will be happy to be corrected, but I understand that your labour can be subject to CIS whether you operate as self-employed (sole trader) contractor, or can also apply if you operate as Ltd Co. 

Deanwil999

Would you think the bank would class me as self employed then and eligible for the loan then? I have self assessment tax returns. 

I have tried looking online for come guidance regarding bounce back loan on cis but can’t seem to find any information anywhere?

Grumpy_chap

You must be self-employed to have qualified for SEISS.  On that basis, BBLS is available.

You will need to be able to demonstrate eligibility to the bank - the specific parts will be that you had started trading before March this year and your 2019 turnover.  Given you satisfied the "majority self-employed" criteria for SEISS, that should be something you can do.  

It is likely the bank will ask questions and probe this, as you are only just opening a business bank account despite, apparently, having used your personal account for business transactions in the past (and against the bank Ts&Cs).

It is worth speaking with a Business Banker to explain the situation and ask what evidence they will need to process the BBLS application.  It may take a bit longer, but if you show patience, this should be 'do-able'.

I am surprised by the high number of people running businesses without properly setting up for the chosen form of trading.  It is always best to keep everything "above board" and to keep business finances separate from personal finances - it must be so hard to keep track otherwise.  If bank charges will make the business non-viable, then the business is probably not viable anyway

Jeremy535897

Grumpy_chap said:

Jeremy535897 said:

Grumpy_chap said:

If you are self employed and impacted by covid, then BBLS is a possibility.
I assume you have business bank account, etc.
Did you claim SEISS?
It is entirely possible to be self employed and within CIS.

By definition if you have CIS deductions from your labour (as a sub-contractor) you are regarded as self employed, otherwise PAYE/NIC would apply.

I will be happy to be corrected, but I understand that your labour can be subject to CIS whether you operate as self-employed (sole trader) contractor, or can also apply if you operate as Ltd Co. 

They can, but OP made it clear he is a sole trader.

Deanwil999

Forgive me but what does OP stand for? 

Grumpy_chap

OP = Original Poster or Opening Post.  In this case @Deanwil999

Grumpy_chap

Jeremy535897 said:

 OP made it clear he is a sole trader.

OP only stated

Deanwil999 said:

As I’m self employed 

There are many examples on this forum of people stating they are self-employed, but then transpiring they do not know the difference between sole-trader and Proprietor-Director of single-person Ltd Co.  Obviously, we have established that does not apply to the OP, but it was initially a possibility.