Insolvency Practitioners Duties Regarding Bounce Back Loan Abuse!

[jimbof]

Looks like the Traffic Commissioners are also taking BBL abuse into account!

Seems odd for them to care so much about financials in order to obtain a hauliers license... Of all the routes you would expect to get pulled up from, this has to be the furthest one from anyone's mind...
Was the license to operate a shiny new BBL funded truck per chance?!

 

[UK Contractor Accountant]

Seems odd for them to care so much about financials in order to obtain a hauliers license..

we have a few clients who operate HGV's and the Traffic Commissioners are pretty hot on financials when the Licence is up for renewal or is a new application. Have to prove sufficient funds to maintain the lorry.

I think things were tightened up when that lorry ran down the hill due to failed brakes and killed some people.

 

[BDF-Anon]

This idea of 'abuse' is based on wrong fundamentals, in my opinion:
loans, grants, etc., are all 'income' to a business. Under normal circumstances, when your business has enough money in its accounts, then you can take some back to recover your initial investment or loan to the business or similar ...
So, unless the director/s have lied in their application for the loan, it should be their decision how to use those money. Let's not forget what UK Government has stated as reason for these loans: helping the businesses survive Covid19 restrictions!!! So, help it should be ...

 

[WaveJumper]

The governments COVID loans were not there to be abused by business. To submit claims to obtain money by misrepresenting the companies finances and squirrelling it away for personal gain was never I would have thought the schemes intention.

I hope now banks and IP's do look carefully and investigate cases where they feel fraud may have taken place and hopefully get the tax payers money returned

 

[Lisa Thomas]

@Gavin Bates calculated there will be c360,000 of unpaid BBL's to investigate...

 

[WaveJumper]

@Gavin Bates calculated there will be c360,000 of unpaid BBL's to investigate...

I like to know you going to be kept busy ....... and maybe out of trouble

 

[ChrisCallaghan]

I like to know you going to be kept busy ....... and maybe out of trouble

Busy times for IPs but equally busy times for the OR! I suspect many will ignore the problem in the hope the company will be dissolved, so I suspect compulsory liquidations will sore in the future. Lets hope they have enough staff to do full and proper investigations!

 

[Lisa Thomas]

I think we know the answer to that, Chris...!

 

[ChrisCallaghan]

Afraid so! They could always contract out if they're struggling.....

 

[Lisa Thomas]

If only we knew of IPs that could assist...

 

[ChrisCallaghan]

If only!

 

[UK Contractor Accountant]

6 Years Director Disqualification for this one - cash gone missing with no records kept,

MSR (“Mr R) failed to ensure that from 01 August 2019 S Ltd (“S”) maintained or preserved adequate accounting records, or in the alternative he failed to deliver up such accounting records as were maintained or preserved to the liquidator.

As a consequence of this failure it has not been possible to determine whether £30,000 received by "S" from the government backed Bounce Back Loan scheme on 7 May 2020 was used for the economic benefit of the business, as per the stated loan terms and conditions.

Unexplained cash withdrawals totalling £45,760 were made from "S"bank account between 7 May 2020 and 22 October 2020.

 

[UK Contractor Accountant]

This one seems a bit harsh -5 Years & 6 Months disqualification, Seems liquidator have no problem in using part of the BBL for their fees - is that for the economic benefit of the company

SJCE (SJCE) applied for a £35,000 Bounce Back Loan (BBL) on behalf of CS Limited (CS) and the company received the funds on 29 June 2020. Between 17 July 2020 and 14 September 2020 he caused funds from the loan totalling £13,177 to be used contrary to the terms of the bounce back loan scheme by making payments for his own personal benefit to his personal account and for no economic benefit to the company in that :-

• The company lost its primary revenue stream in late 2019 and was left without work, quotations were issued for new work in January 2020 but lockdown conditions meant works did not start. The company ceased trading on 31 July 2020.

• CS secured a BBL of £35,000 on 29 June 2020. • He paid the following sums to himself: 17 July - £600, 29 July - £500, 6 August - £5,000 and 19 August, £5,000

• In addition, after first approaching the Liquidator on 11 September and paying their fees on14 September a further £1,900 was paid to him.

• He has stated that some of these funds were used to repay personal credit cards, which had been used for company expenditure. No records have been provided to support this explanation.

• The company accountant converted the amounts paid to him into a Director’s Loan account which remains unpaid. • At liquidation Yorkshire’s liabilities total £105,886 including £35,000 in respect of the bounce back loan.

 

[UK Contractor Accountant]

6 Years disqualification for this one - paid the BBL to his associates, that was nice of him. Didnt keep any for himself but at least kept it all in the family

A V G (“Mr G) caused or allowed T Ltd (“T”) to enter into transactions to the detriment of its creditors, and to the benefit of associates, between 28 May 2020 and 29 May 2020, totalling £53,280. Those funds were in part introduced into the business by way of a Bounce Back Loan (“BBL”) with the express intention of providing economic benefit to T, but instead were paid to associates, in that:

• In the Report to Creditors prepared for the liquidation, Mr G explained that following lockdown in March 2020, subcontractors used by the company left the UK, and once restrictions were lifted, T had an insufficient workforce to carry out contracted work, which resulted in the loss of T's main contract.

• Following receipt of the £50,000 BBL on 11 May 2020, the balance on the bank account of T was £56,084. A sales receipt of £4,659 was received on 15 May 2020.

• On 28 May 2020, a payment of £30,000 was made to Mr G's co-director and wife and a payment of £23,000 was made to another relative of Mr G, with a further payment of £280 to the relative on 29 May 2020.

• On 29 May 2020, the last sales receipt was of £11,546 was received by T, indicating T had ceased to trade soon after payments totalling £53,000 were made to associates of Mr G.

• At liquidation on 17 December 2020, T had assets of £41 and creditors of £90,656, including £50,000 owed in respect of the BBL

 

[Adam93]

6 Years disqualification for this one - paid the BBL to his associates, that was nice of him. Didnt keep any for himself but at least kept it all in the family

A V G (“Mr G) caused or allowed T Ltd (“T”) to enter into transactions to the detriment of its creditors, and to the benefit of associates, between 28 May 2020 and 29 May 2020, totalling £53,280. Those funds were in part introduced into the business by way of a Bounce Back Loan (“BBL”) with the express intention of providing economic benefit to T, but instead were paid to associates, in that:

• In the Report to Creditors prepared for the liquidation, Mr G explained that following lockdown in March 2020, subcontractors used by the company left the UK, and once restrictions were lifted, T had an insufficient workforce to carry out contracted work, which resulted in the loss of T's main contract.

• Following receipt of the £50,000 BBL on 11 May 2020, the balance on the bank account of T was £56,084. A sales receipt of £4,659 was received on 15 May 2020.

• On 28 May 2020, a payment of £30,000 was made to Mr G's co-director and wife and a payment of £23,000 was made to another relative of Mr G, with a further payment of £280 to the relative on 29 May 2020.

• On 29 May 2020, the last sales receipt was of £11,546 was received by T, indicating T had ceased to trade soon after payments totalling £53,000 were made to associates of Mr G.

• At liquidation on 17 December 2020, T had assets of £41 and creditors of £90,656, including £50,000 owed in respect of the BBL

These are very interesting and I have a feeling this is going to be a long thread that may keep going for a few years yet!

 

[UK Contractor Accountant]

6 Years Disqualification for this one - like the fact Mrs H still said she was still owed £924 despite swiping £40K of the BBL funds for her own personal benefit!

Must have seen the "golden goose" as a way of getting back her investment money back.

On 4 May 2020 KH (“Mrs H") caused A Limited (A) to apply for a Bounce Back Loan (BBL) of £48,750 using overstated turnover figures in the loan application form. Consequently, Sportswear received more monies than it was entitled to from the BBL scheme. From the loan proceeds received

Mrs H used £39,902 of those monies for her own personal benefit. In that::

• On 4 May 2020 the company obtained a BBL of £48,750 despite its turnover for the year to 31 August 2019 totalling only £63,391. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

• The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes. Having received the BBL of £48,750 on 5 May 2020, Mrs H used £39,902 for personal benefit between 11 May 2020 and 13 May 2020.

• Sportswear ceased trading in December 2020 and on 9 February 2021 it entered into creditors’ voluntary liquidation with assets of £6 and liabilities of £51,213 including £48,750 which is owed to in respect of the BBL, and Mrs H stated as being owed £924.

 

[UK Contractor Accountant]

This headline must be a bit worrying for those companies currently in the process of being wound up with BBL's

"Newspapers Start Splashing Faces of BBL Wrongdoers Across the Pages of their Publications"

The ones published relate to those that have gone through the Insolvency process and have been deemed to have abused BBL funds.

 

[japancool]

I note that Company A had become Sportswear by the second sentence.

 

[UK Contractor Accountant]

I note that Company A had become Sportswear by the second sentence.

its all on Public Record anyway if you know where to look. I edited the names to protect the innocent

 

[jimbof]

• On 4 May 2020 the company obtained a BBL of £48,750 despite its turnover for the year to 31 August 2019 totalling only £63,391. A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover in calendar year 2019.

I've seen two of these now where the information about what they had actually turned over that is reported in these summaries doesn't actually relate to the calendar year 2019. I mean, last time I checked 2019 had 4 months after August. Now I'm not saying the cases are wrong, or defending the indefensible, but it seems incredibly sloppy to be reporting this as a breach when it doesn't constitute one on the basis of the facts presented.

 

[UK Contractor Accountant]

but it seems incredibly sloppy to be reporting this as a breach when it doesn't constitute one on the basis of the facts presented.

the IP would have gone through the bank account & vat returns if registered so they would have a fair idea that the turnover was nowhere near £195K for the calendar year.

Needed to sell more of those Michael Jordon trainers he wore when first started professional career

 

[IanSuth]

I've seen two of these now where the information about what they had actually turned over that is reported in these summaries doesn't actually relate to the calendar year 2019. I mean, last time I checked 2019 had 4 months after August. Now I'm not saying the cases are wrong, or defending the indefensible, but it seems incredibly sloppy to be reporting this as a breach when it doesn't constitute one on the basis of the facts presented.

I assumes it means that companies financial year - so in this instance a company whose last complete financial yr was Sep 18-Aug19

 

[jimbof]

the IP would have gone through the bank account & vat returns if registered so they would have a fair idea that the turnover was nowhere near £195K for the calendar year.

You'd certainly hope that is the case, but when setting out an argument for the premise on which the action is taken, it should be on a sound point. What I've seen twice now are examples of non-sequitur logic which does make you wonder. Of course I want all the micktakers to get what's coming to them, it's my taxes they're pinching, but equally I'd hope everyone who is taken to task is on a sound basis, and it would be worrying if we hear of people being wronged in a frenzied sweep-up.

I assumes it means that companies financial year - so in this instance a company whose last complete financial yr was Sep 18-Aug19

No, the company financial year had nothing to do with bounce back loan applications. The terms were very clear they related to the 2019 calendar year.

https://www.ukbusinessforums.co.uk/...over-calendar-year-or-latest-accounts.408974/

There are some comments at the end that haven't aged very well...

 

[UK Contractor Accountant]

6 Years disqualification for this one - looks like 6 years is going to be the standard for BBL abuse.
Novel though this one, took all of the BBL out in cash, must have been on the coffee rota list at the local Bank Branch

MS, (“Mr S”) failed to ensure that BL Ltd (“BL”) maintained and/or preserved adequate accounting records for the period 31 December 2019, (the last prepared accounts recorded at Companies House), to Liquidation on 19 February 2021, or in the alternative, following liquidation he failed to deliver up to the Liquidator adequate records as were maintained and/or preserved. As a result it has not been possible to determine: The reason for ATM cash withdrawals amounting to £13,654 between 01 January 2020 to 24 July 2020 and whether these were used for the benefit of BL.

The reason for counter withdrawals amounting to £45,500 between 04 January 2020 and 11 June 2020 and whether these were used for the benefit of BL.

The reason for further counter withdrawals amounting to £50,000 over 5 days between 30 June 2020 and 04 July 2020 and whether these were used for the benefit of BL.

The reason for a final counter withdrawal of £7,000 on 10 August 2020 and whether this was used for the benefit of BL.

Whether 5 invoices totalling £24,908.10 and 17 wage slips totalling £14,062.10, covering a period between 09 January 2020 to 30 June 2020, delivered up to the Liquidator on 14 June 2021, were paid by BL in cash, leaving at least £77,183.80 in unaccounted cash withdrawals between 01 January 2020 and 10 August 2020.

Whether the turnover of BL was sufficient to qualify for a £50,000 Government Bounce Back Loan, received on 19 June 2020. Whether the £50,000 Government Bounce Back Loan was used wholly for the benefit of BL. The quantum of assets distrained by the landlord of the trading address.

 

[UK Contractor Accountant]

6 Years disqualification for this one - fraudulent application for BBL. Just plucked the £81K figure out of thin air for turnover for calendar year to Dec 19.

RM (Mr M) caused F Limited (hereafter referred to as “F”) to apply for and accept a Bounce Back Loan of £10,000 when not eligible for such support in that:

• On 18 May 2020 F applied for a Bounce Back Loan of £10,000 from Barclays Bank. The application form was completed by Mr M on behalf of F.

• On the application form F declared turnover of £81,000 for the calendar year 2019.

• The loan terms allowed F to apply for a loan up to 25% of the annual turnover of the company from £2,000 - £50,000. • From examination of the bank account (which Mr M states is the sole bank account for F) income received into the account totalled £3,246.71 in 2019.

• No company records have been provided to support the stated turnover of £81,000 and no explanation of why the bank account does not reflect the turnover stated on the application form has been provided.

• On the application form F declared that it was not insolvent or a business in difficulty on 31 December 2019. At this time F had lost both of its contracts and owed HMRC more than £26,000 for VAT and £81,000 for Corporation Tax.

 

[UK Contractor Accountant]

11 Years Disqualifiaction for this one - over egging turnover for BBL and not for econimic benefit of company

Not a bad deal through took £50K BBL only paid £25K back to Liquidators!

A (“Mr A”) caused S A Limited (“S”) to fraudulently apply for a Government Backed Bounce Back Loan (“BBL”) when he knew or ought to have known that S was not eligible for that loan. Further, Mr A has failed to provide accounting records evidencing that the BBL funds were used for the economic benefit of S, which was a requirement of the BBL scheme, in that:

1. Mr A was a director of S from 03 December 2018 until liquidation.

2. On 17 May 2020, Mr A applied for a BBL of £50,000 on behalf of S. In the application form, Mr A declared that S’ up to date annual turnover was £200,000.

3. The BBL scheme allowed businesses affected by the Coronavirus pandemic to apply for a government backed loan of between £2,000 and £50,000, up to a maximum of 25% of turnover in the calendar year 2019. Where a business had not traded for the whole of 2019, a business could provide an estimate of their annual turnover.

4. The first payment that can be seen going into S’ bank account from a customer was a payment of £100 on 22 August 2019, indicating that S did not trade for the whole of the calendar year 2019 and so was eligible to provide an estimated figure for annual turnover on the BBL application form.

5. Total customer receipts into S’ bank account from 22 August 2019 to 17 May 2020 were £3,110, an average of £346 per month. The highest monthly income S received from customers was £640 in February 2020. Using the February 2020 figure as an estimated maximum monthly income gives annual turnover of a maximum of £7,680.

6. Mr A has failed to provide any evidence that the estimated annual turnover of £200,000 was appropriate. Based on the available records, annual turnover was a maximum of £7,680. This was below the turnover level of £8,000 that was required in order to obtain the minimum BBL of £2,000 and so S was not eligible for the BBL scheme.

7. On 21 May 2020, £50,000 was credited to S’ bank account as a result of the BBL application.

8. Mr A has stated that the BBL funds were used to fund marketing and advertising services provided by four self-employed individuals (“the four individuals”), who were not connected to the directors of S. Mr A’s co-director later confirmed that one of the four individuals who received funds from S was a member of his family.

9. The four individuals each received monthly payments from S of £2,000 between 26 June 2020 and 26 October 2020, with two of them receiving an additional payment of £1,900 each on 26 November 2020, a total of £43,800.

10. S bank statements show that after 21 May 2020 when S received the BBL funds, the only payments into S’ bank account from customers were three payments of £100 each made in July 2020, September 2020 and October 2020, all from the same customer. S’ bank statements show that this was an existing customer of S and so this was not new custom generated by the expenditure stated to be on marketing and advertising. Mr A has not provided evidence of any new custom generated by the £43,800 he claims was spent on marketing and advertising between 26 May 2020 and 26 November 2020.

11. In late November 2020, Mr A sought professional advice into the affairs of the company and on 19 January 2021 S went into liquidation.

12. The bank who gave S the BBL confirmed that at the date of liquidation the outstanding balance on the BBL was £49,846.

13. At the date of liquidation S had assets of £168, liabilities of £50,046 and a deficiency to creditors of £49,878. 14. The Liquidator has advised that Mr As co-director has repaid £25,000 in full and final settlement of the claims against both directors, reducing the deficiency to creditors to £24,878

 

[UK Contractor Accountant]

Wonder what the Liquidator/Insolvency Service is going to report on this one?

BOBBY Davro’s company has gone bust owing over £92k to creditors, including £32,100 to HMRC, after the comedian complained earlier this year that the pandemic had left him broke.

In January, the desperate star said the lockdowns had left him so skint that he’d been forced to take out a government bounce-back loan and didn’t know how he was going to pay the bills, adding: "There is no work. I only did four gigs last year. I can’t earn anything. I haven’t been able to earn money for a year. It’s dreadful.”

 

[jimbof]

@UK Contractor Accountant
Is there any indication of BBL wrongdoing? Seems a bit harsh to be mentioning his co in here in if not.

 

[UK Contractor Accountant]

Only 4 year ban for this one - reduction from the normal 6 year ban as only took £20K for himself!

Thought the company had to be in existence before the 1 March 20 to apply for BBL?

On 30 September 2020, (“Mr S”) caused SAM Ltd to apply for a Bounce Back Loan of £50,000 and utilised at least £20,000 of the funds for his personal benefit and not to provide economic benefit to SAM, which was to the detriment of SAM’s other creditors, in that:

• SAM was incorporated on 6 May 2020.


• On 3 July 2020 Mr S lent SAM £18,300 as working capital.

• SAM commenced trading on 6 July 2020 when it took over the ongoing work of Mr S's previous sole proprietorship business (including a project where the customer had given notice on 1 July 2020 that an overpayment of £56,840 had been made.)

• The same customer issued an invoice dated 30 September 2020 for the overpayment of £42,028 (including VAT).

• On 30 September 2020, Mr S caused SAM to apply for a Bounce Back Loan of £50,000.

• On 1 October 2020, SAM received £50,000 into its bank account in relation to the Bounce Back Loan.

• On 2 October 2020 Mr S received £3,000 described as salary.

• On 2 November 2020 Mr S received £20,000. •

On 2 November 2020 Mr S received £3,000 described as salary

• SAM ceased to trade on 9 November 2020.

 

[UK Contractor Accountant]

7 Years Disqualification for this one - did manage to leave, however, £139 of the BBL for the benefit of creditors, fair play!

Between 03 May 2020 and 08 June 2020 RP (“Mr P”) caused RC Ltd (‘R’) make payments to himself totalling £25,000, which were to the detriment of R's creditors and caused R to become insolvent.

Mr P caused R to apply for a Bounce Back Loan, (“BBL”) in the amount of £41,000, which was received into R’s bank account on 13 November 2020.

Between 30 December 2020 and 10 February 2021 payments totalling £40,861 were made to and on behalf of Mr P, which were not for the economic benefit of R and were in breach of the terms of the BBL.

 

[UK Contractor Accountant]

7 Yrs Disqualification for this one - told by IP company was insolvent and then promptly applied for BBL for £50K swiping £38K for himself.

On the 27 July 2020, CP (“Mr P”) caused (“Pick It”) to apply for a Bounce Back Loan (“BBL”) of £50,000 at a time when he had been informed by an insolvency practitioner that Pick It appeared to be insolvent and as such he should ensure any continued trading did not worsen the position of its creditors.

On 16 June 2020, Mr P was advised by an Insolvency Practitioner that Pick It was insolvent and that any continued trading should not worsen the position of its creditors.

• On 27 July 2020, Mr Pearson applied for a government BBL of £50,000, on behalf of Pick It.

• On 28 July 2020, the £50,000 BBL funds were paid into Pick Its business bank account. •

On the same date, Mr Pearson transferred £38,000 of the BBL funds from Pick Its business bank account into his personal bank account, contrary to the terms of the BBL agreement which state that BBL funds should be used for the economic benefit of the business.

• Pick It ceased trading on 22 October 2020. At liquidation on 29 December 2020 the BBL of £50,000 remains outstanding and other creditors are owed £153,628.

 

[UK Contractor Accountant]

6 Years Disqualification for this one - tried to use the 'Dividend' route to tranfser out the BBL funds even though she had overdrawn DLA of £29,323 and no distributable reserves out of which to pay dividends.

DT (“Ms T) failed to ensure that SHS Limited complied with its obligations as regards the utilisation of a Government backed bounce back loan (“BBL”) that it obtained on 10 May 2020, in that:

• prior to 10 May 2020, she applied to a bank for a BBL of £50,000 having met the requisite guidelines;

• on 10 May 2020 the BBL in the sum of £50,000 was paid into the Company’s bank account. Prior to receipt of the loan the account balance stood at £67.00 in credit;

• on 10 May 2020 she transferred the sum of £5,000 to her personal bank account with the bank narrative referred to ‘dividend’;

• between 11 May and 15 May 2020 further ‘dividends’ totalling £27,000 were paid to her personal bank account plus a further transfer of £1,000 on 25 May 2020 after which the account balance stood at £18.70 in credit; No other funds were paid into the Company’s bank account between 10 and 25 May 2020.

• Although these and other payments to her were described as dividends in the bank statements, there is no evidence available to demonstrate that the dividends had been lawfully declared or were paid from distributable profits which, according to the unaudited financial statements as at 31 August 2019, were £6,526 and these also disclosed that she owed the Company £29,323 at that date.

 

[UK Contractor Accountant]

This was published a few days ago by the National Audit Office in relation to BBL's

2.14 It has taken some time for the Department and the Bank to build their
counter-fraud capacity. At the start of the Scheme, the Department recognised that
its counter-fraud function – two full-time staff – would require significant organisational
change to cope with the high levels of estimated Scheme fraud. The Government
Counter Fraud Function placed a senior civil servant into the Department to aid
the counter fraud response. By January 2022, the Department plans to increase
its counter-fraud team to 10 full-time equivalent (FTE) staff. The Bank reallocated
resources internally, and also used secondees and external parties until March 2021
when it set up a dedicated financial crime team, aiming to recruit six FTE staff by
the end of 2021. In October 2020, the Department proposed options to enhance its
counter-fraud measures, costing an additional £32 million, or 0.07% of the total value
of the loans. This cost estimate is not limited to staffing and is regardless of the scale
of fraud. As with other government departments, the Department has low numbers
of staff with fraud expertise; the Committee of Public Accounts noted in June 2021,
for example, that 77% of government counter fraud professionals work in the
Department for Work & Pensions or HMRC.

 

[UK Contractor Accountant]

11 Years Disqualification for this one - 2 lots of BBL abuse looks like you get 11 years ban. Doesn't say what happened to the £100K BBL though!!

On 16 May 2020 DS (‘Mr S’) caused A Ltd (‘A’) to obtain a Bounce Back Loan (‘BBL) of £50,000 that it was not entitled to, in that:

• Businesses adversely impacted by Covid 19 could apply for a BBL.

• Only one BBL was permitted to be obtained per business, for up to 25% of the turnover of a business, to a maximum value of £50,000.

• On 12 May 2020, Mr S caused A to apply for a BBL from Bank A, for £50,000.

• Bank A paid £50,000 into the bank account of A on 14 May 2020.

• Contrary to the terms and conditions of the scheme that only one BBL could be obtained for each company, Mr S caused A to make a further BBL application to Bank B.

• The application form for Bank B was completed by Mr S on 16 May 2020. Mr S declared in the loan agreement that A had “not previously borrowed under the Bounce Back Loan Scheme”, despite having received a £50,000 loan from Bank A two days previously.

• Bank B paid £50,000 into the bank account of A on 18 May 2020.

 

[frank759]

This changes things, here it says the insolvency service can now also claim compensation from such directors too https://mrbounceback.com/business-s...s-the-power-to-instigate-compensation-orders/

 

[japancool]

This changes things, here it says the insolvency service can now also claim compensation from such directors too https://mrbounceback.com/business-s...s-the-power-to-instigate-compensation-orders/

Yeees... but that says the insolvency service can pursue compensation for other liabilities, not just BBLs. So presumably, that includes tax liabilities too.

 

[WaveJumper]

Yep there's more on it here

Crackdown on directors who dissolve companies to evade debts

Rogue directors who dissolve their companies and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director.

www.gov.uk

 

[japancool]

So which part of "limited liability" now describes limited companies?

 

[WaveJumper]

I am sure the courts are going to be put under even more pressure in the coming years but not before time those who have acted in a fraudulent manor are bought to task

 

[UK Contractor Accountant]

Looks like investigators are now checking other source documents for BBL fraud in the application process:

"A Corporation Tax Return, an Application to Register for VAT, Bank Statements and a VAT Return are Used to Prove Three Company Directors Over-Egged the Turnover of Their Business to Obtain a £50k Starling Bank Bounce Back Loan – All Given 7 Year Disqualifications"​