Bounce back business loan

Devsaroon11

Last year I took out a bounce back business loan as I was a ltd company but the only employer of the company and was not receiving any other financial help during the coronavirus pandemic. I have recently become employed and therefore no longer require my ltd company. Do I still have to pay the business loan? 

bazzyb

Yes, you are responsible for the loan.

y3sitsm3

bazzyb said:

Yes, you are responsible for the loan.

Not if it's a limited company, the company is.

The OP could go via the CVL route, although if they do they need to have been whiter than white with the BBL funds. If there's been any impropriety it will be picked up on and the consequences could be quite severe.

MattMattMattUK

Devsaroon11 said:

Last year I took out a bounce back business loan as I was a ltd company but the only employer of the company and was not receiving any other financial help during the coronavirus pandemic. I have recently become employed and therefore no longer require my ltd company. Do I still have to pay the business loan? 

You cannot just walk away, you have to follow the procedures for winding up an insolvent company and as mentioned above how you personally obtained the funds from the BBL will potentially be the issue. With PAYE on a regular contracted salary (eg. No bonuses, the same monthly amount via PAYE as pre-pandemic etc.) being pretty much the only legitimate way (eg. If you have just transfered money to yourself, or paid out dividend without the profit to distribute etc. that is not allowed). Additionally you may well have issues with wrongful trading (trading insolvently).

You need to speak speak a good accountant, banks will not let this slide if you have not done everything entirely correctly, neither will the government and they should not either, otherwise the cost falls on taxpayers.

Grumpy_chap

Devsaroon11 said:

Last year I took out a bounce back business loan as I was a ltd company but the only employer of the company and was not receiving any other financial help during the coronavirus pandemic. I have recently become employed and therefore no longer require my ltd company. Do I still have to pay the business loan? 

Yes, the Ltd Co remains responsible to repay the BBLS.

It sounds from the post as though you have not yet wound up the Ltd Co.  Does the Ltd Co. have the funds to repay the loan?  Cash funds or other assets.

If not, where did those funds go?  There is a difference in how matters would progress if the funds were used for business activity, or paid to you in the form of a dividend or through regular activity of operating the business.

If the business is to cease trading and not repay the BBLS, then the insolvency route would need to be followed and this is more complicated than a simple voluntary closure.

superbigal

Devsaroon11 appears to be attached to a name if you google.  Said name does not appear to be a company director when I searched.  Maybe not the complete story

Borders2017

People like you that make a mockery of the system designed to help legitimate businesses survive tough times.