£50K Interest Free Loan for 12 Months

[GhostofTarbera]

Interesting points. But given the loan scheme seems set to remain for some time, taking a loan just in case you lose work later seems a stretch. Why not wait and see? DO we know when the scheme will run until by the way?

I think increased liquidity HAS been mentioned as a legitimate reason (?) though that is more relevant for people with considerable outgoings (stock, employees etc) but either way that doesn't seem the same as explicitly stating you're taking the loan as an investment. If you're cynically doing it for the interest, I really wouldn't go boasting about that online!

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To November - fill your boots


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[simes]

I'm not - Its a point of principle now: Jan - March gig came to an end. Lined up another, via Umbrella, so resigned from Ltd. Virus binned that new gig, so P45 from umbrella without earning. Reinstated to LTD to claim furlough and HRMC said "No".

Lady luck smiled and I have picked up a 2nd fiddle option on Agency PAYE terms... but the principle is that HMRC said no, and this is my way of settling the score in my mind!

M

Kinda with you on all this.

[SussexSeagull]

If your business has been interrupted by Covid-19 you are entitled to apply for the loan. This would defiantely include not being in contract and one might argue include being in a lesser paid one than normal. To actually get the money in your back pocket it would need to go through salary or dividend (although the latter would be restricted by other things discussed elsewhere).

If you are still in contract with no loss you probably shouldn't apply.

Either way you have to repay it so unless you are planning to take the money out and close the company everything will eventually get returned to normal.

I think some are guilty of over analysing this.

[GhostofTarbera]

If your business has been interrupted by Covid-19 you are entitled to apply for the loan. This would defiantely include not being in contract and one might argue include being in a lesser paid one than normal. To actually get the money in your back pocket it would need to go through salary or dividend (although the latter would be restricted by other things discussed elsewhere).

If you are still in contract with no loss you probably shouldn't apply.

Either way you have to repay it so unless you are planning to take the money out and close the company everything will eventually get returned to normal.

I think some are guilty of over analysing this.

Or take it as a Loan


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[Spoiler]

FreeAgent: Deal with a loan

How to deal with money that's been lent to your business in FreeAgent.

Including BBLS

[l35kee]

So we can take this loan out, pay nothing for 12 months and then give the exact same amount back at the 12 month point?

Seems worth doing even if just a precaution?

[ladymuck]

So we can take this loan out, pay nothing for 12 months and then give the exact same amount back at the 12 month point?

Seems worth doing even if just a precaution?

In theory, yes

[jamesbrown]

So we can take this loan out, pay nothing for 12 months and then give the exact same amount back at the 12 month point?

Seems worth doing even if just a precaution?

Assuming your business has been impacted by CV19 in some way, yes.

[d000hg]

Assuming your business has been impacted by CV19 in some way, yes.

Assuming the scheme runs for a while, the moment you get benched you could apply... Who knows how readily you'd find a new gig?

If you're in contract it seems hard to justify unless you've been asked to reduce hours or rate.

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[jamesbrown]

Assuming the scheme runs for a while, the moment you get benched you could apply... Who knows how readily you'd find a new gig?

If you're in contract it seems hard to justify unless you've been asked to reduce hours or rate.

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Agree that it's a low bar.