Is the self-employed sole trader without an incorporated business eligible for a Bounce Back Loan?

theone999

if yes, then also, would it be possible to use the 2019/20 self-assessment as proof of income since it is now past the last accounting year?

Basically I am self-employed sole trader, but I am not the director of a company, no business bank account and do not have an eligible 2018/2019 self assessment. Thanks

Grumpy_chap

When did you start trading?  Was it before 1st March 2020?  (Must have been if you have sole-trader accounts from 2019-20.)
If so, then you are likely eligible for BBLS and using the 2019 accounts would be appropriate to calculate the turnover figure to use to determine the available loan amount.

Having said that, for practical purposes, you may find it extremely difficult to actually obtain a BBLS if you do not already have a business bank account.

I understand the SEISS 4 grant will consider the 2019/20 tax return, so that may be available to you subject to satisfying the other eligibility criteria.

theone999

Grumpy_chap said:

When did you start trading?  Was it before 1st March 2020?  (Must have been if you have sole-trader accounts from 2019-20.)
If so, then you are likely eligible for BBLS and using the 2019 accounts would be appropriate to calculate the turnover figure to use to determine the available loan amount.

Having said that, for practical purposes, you may find it extremely difficult to actually obtain a BBLS if you do not already have a business bank account.

I understand the SEISS 4 grant will consider the 2019/20 tax return, so that may be available to you subject to satisfying the other eligibility criteria.

I was trading before 2019, however due to personal circumstances, I was economically inactive for most of that tax year (18/19) and as the minimum loan amount is 2000 or 25% of trading profits, the accounts for that year would not be eligible but 19/20 would be. so while I am eligible for SEISS, I wasn't sure about about bounce back loans. 

jfinnie

theone999 said:

however due to personal circumstances, I was economically inactive for most of that tax year (18/19) and as the minimum loan amount is 2000 or 25% of trading profits, the accounts for that year would not be eligible but 19/20 would be. so while I am eligible for SEISS, I wasn't sure about about bounce back loans. 

Tax returns are for proof of self employment, not quantifying amount of loan.
The amount of loan is based on the 2019 calendar year turnover, and not the 2019-2020 tax year.  So depending on how your trading falls, you might still have very low qualifying turnover.