£50K Interest Free Loan for 12 Months

[oliverson]

so, applied 09:03 yesterday to RBS and my email link to the application form came through just before 17:00. Completed it and received a copy via email but no further instructions. I'm assuming it is being processed, but to what degree? Do we have a bum on seat kind of guy going through each and every application? That could take a long time seeing as RBS had 30k applicants yesterday alone. Some have said on here they have received funding already, albeit via a different lender.

Anybody else applied through RBS or Natwest and seen any funds yet?

[northernladuk]

So you are topping up your warchest which is essentially just your business reserves that are available to be withdrawn(through salary/divi/DL) for personal reasons (and possibly future corp tax payments too) when/if the time comes.

Again, your application of knowledge leaves a lot to be desired. If you need to use borrowed money to pay CT you are in trouble. CT payments DO NOT come from the warchest. It's money set aside. It's not yours.

Scenario: You have a big personal expense in the near future and need to use 10k of the business loan to fund it. If you take it out as a dividend you will probably incur tax on that, you will then need to repay it as a DL TO the company at a future date when you have to pay off the BB loan. If you are not trading at that time, possibly as there is no need due to IR35, then your business will have a loan which in theory won't be able to be settled. What do you do then?

I'd run my business and personal life better than I'm not dicking around with 10k personal expenses that I am having to look to the company to fund. I'd be paying the proper dividends as is most efficient to me and not living beyond my means. Avoid silly situations, not look for ways out once you are in them.

We've plenty of threads of people on here using DL's to fund personal stuff and it going badly wrong for them. We've also got threads of people using their warchest up because they want a new house or extensions and it going badly wrong for them as well.

You're whole attitude and misunderstanding makes me you are likely to be one of them.

Most contractor's are only considering this loan to fund themselves personally. You don't seem to understand that a "warchest" is what you use to fund your personal self in hard times.

Generally you are right but it's your whole approach to it that smacks and by thinking this you keep saying some odd stuff.

But anyway. You've rather tediously made your point so do whatever you think is fit with the company money and let's get back to the discussion around getting them.

[jamed]

So it appears, at least from PKF's theoretical understanding on the 29th of April, that the loan can be used to pay salaries, dividends and DL's (if you don't have the reserves available) to fund the director's personal expenses.

Viewpoint: Bounce Back Loans – a solution for unpaid shareholders? | PKF Littlejohn LLP

I think this is good enough guidance for how we can use the loans and makes logical sense.

[CosmicWave]

Ok, so there is a theme that can be seen evolving from the Barclays twitter account now... it appears that Barclays won't even allow you to see the Bounce back loan application questions screen if your company has more than 1 director. Say if you have told them you are 2 directors, then there is no chance of you seeing anything more than the first screen where you company is shown with a radio button to confirm your company name, and then all you will get when you click "next" is a white screen saying there is a problem, so sorry, cannot continue to get the loan.

So that is a clear violation of what he government has said. The government has never said that the Businesses will have to to have only one director.

So, Barclays are implementing some strange and dodgy rules by themselves opposed to what the government has clearly said in their website. Absolutely nasty Barclays!

[Old Greg]

So it appears, at least from PKF's theoretical understanding on the 29th of April, that the loan can be used to pay salaries, dividends and DL's (if you don't have the reserves available) to fund the director's personal expenses.

Viewpoint: Bounce Back Loans – a solution for unpaid shareholders? | PKF Littlejohn LLP

I think this is good enough guidance for how we can use the loans and makes logical sense.

Dividends are paid from profits.

[WordIsBond]

Ok, so there is a theme that can be seen evolving from the Barclays twitter account now... it appears that Barclays won't even allow you to see the Bounce back loan application questions screen if your company has more than 1 director. Say if you have told them you are 2 directors, then there is no chance of you seeing anything more than the first screen where you company is shown with a radio button to confirm your company name, and then all you will get when you click "next" is a white screen saying there is a problem, so sorry, cannot continue to get the loan.

So that is a clear violation of what he government has said. The government has never said that the Businesses will have to to have only one director.

So, Barclays are implementing some strange and dodgy rules by themselves opposed to what the government has clearly said in their website. Absolutely nasty Barclays!

Sounds more like a bug to me.

Never assume malevolence when incompetence would serve as a reasonable explanation of the evidence.

Of course, if Barclays has never ever been incompetent then it must be malevolence after all. Seems like they just might have some incompetence somewhere in their history.

[WordIsBond]

so, applied 09:03 yesterday to RBS and my email link to the application form came through just before 17:00. Completed it and received a copy via email but no further instructions. I'm assuming it is being processed, but to what degree? Do we have a bum on seat kind of guy going through each and every application? That could take a long time seeing as RBS had 30k applicants yesterday alone. Some have said on here they have received funding already, albeit via a different lender.

Anybody else applied through RBS or Natwest and seen any funds yet?

Clearly they need to take on some outside-IR35 contractors.

[WordIsBond]

That's the daftest thing I've read in a long time.

There must have been about 10,000 dafter posts in the last six months talking about IR35 "reform". This was only mildly egregious compared to some of those.

[jamesbrown]

Dividends are paid from profits.

Sure, but profits can be distributed before invoices are paid. The loan helps with cashflow. You need to have a reasonable belief that the company will be able to pay its debts when they become due. Obviously, a liquidator could seek to have dividends reversed if invoices aren't paid subsequently and debts go into default. As always, speak to your accountant before doing something you don't understand.

[northernladuk]

There must have been about 10,000 dafter posts in the last six months talking about IR35 "reform". This was only mildly egregious compared to some of those.

Good point very well made. I'll change the date range to 'in the last month' then.