£50K Interest Free Loan for 12 Months

[GhostofTarbera]

They're the sort of muppets that will be targeted.

No chance

And when HMRC puts up tax and robs pensions to pay for all this, only a few like you will not have benefited from all this


Sent from my iPhone using Contractor UK Forum

[jamesbrown]

No chance

And when HMRC puts up tax and robs pensions to pay for all this, only a few like you will not have benefited from all this


Sent from my iPhone using Contractor UK Forum

I'll put you down as "one of those muppets", tarbie.

Good luck with that. The idea that they won't police this retrospectively when they're stuffed for money is spectacularly naive.

Especially with all the stories about CIBLs being misused on BTLs and "supercars".

( I don't need to "benefit" from it because I have ongoing gigs and a warchest. )

[mjcp]

HSBC issue BBLs in personal name, not business name:

HSBC error sent bounce back loans out in wrong name - Mortgage Solutions

M

[GhostofTarbera]

Tide give up - lol


Tide Bounce Back Loans / Update 3 / A letter to all members from Oliver, our CEO | Tide Business


Sent from my iPhone using Contractor UK Forum

[coolhandluke]

To take money out of the limited you have three options - dividend, loan or salary.

I can't see how you can use the loan to pay a dividend as this must come out of retained profits and the loan creates a debt. A Directors Loan has BIK if over 10k and finally a salary would incur tax and NI costs.

Plus to get the 50k you must be turning over 200k which is what £900 a day. If you are getting this as a day rate and don't have a warchest can you please invite me to one of your coke and hooker parties.

Taking a BBL as a bog standard IT Contractor is madness in my book.

[d000hg]

They're the sort of muppets that will be targeted.

No, this was one example of what you're allowed to use it for (as a self-employed type at least).

[GhostofTarbera]

To take money out of the limited you have three options - dividend, loan or salary.

I can't see how you can use the loan to pay a dividend as this must come out of retained profits and the loan creates a debt. A Directors Loan has BIK if over 10k and finally a salary would incur tax and NI costs.

Plus to get the 50k you must be turning over 200k which is what £900 a day. If you are getting this as a day rate and don't have a warchest can you please invite me to one of your coke and hooker parties.

Taking a BBL as a bog standard IT Contractor is madness in my book.

Invite sent


Sent from my iPhone using Contractor UK Forum

[fiisch]

BBL is giving me serious FOMO (Fear of Missing Out).

Read this thread with interest. I am in a contract until end of November, which will take me to 18 months, and has gone very well, thank you. I've also just welcomed second daughter into the world, so feeling a little vulnerable as a contractor in current climate. I have a modest warchest, but recent move and that I've only contracted for 2.5 years means it's only worth 3-4 months, possibly 6 at a push with mortgage holidays etc.

Project I am on is scheduled to end in November, and no delays anticipated, so I'm expecting to be back on the market and a time when it may well be the most difficult to secure a new gig.

Part of me thinks I should apply for the loan as a just-in-case, other half thinks that currently, if anything, I've benefitted from Covid due to savings on commute so morally I should let this one pass my Ltd company by. A small part of me even thinks chuck it all on black, apply for loan, transfer to another company and use it to get a foot on the BTL ladder.... Cheap loan to cover some of the deposit, use monthly income to cover most of the payments after Y1, after 6 years you have a BTL that provides a decent income. But, I suppose, morally that would be utterly reprehensible.

Is applying as a "just-in-case" a valid rationale? Is there any danger of the scheme being pulled, or is the up until November a government guarantee?

[d000hg]

You have to say you have been negatively impacted by CV. Are you are happy flat-out lying to the bank?

I would not say it is that unlikely that HMRC might check up on some of this later on. Punishing those who took advantage would go down very well with the tax-payers.

[simes]

It has also been mentioned that those applying for government help during covid, do find it difficult, or impossible, to get a normal loan.

If a btl is your aim, secure that loan first.