Insolvency Practitioners Duties Regarding Bounce Back Loan Abuse!

Discussion in 'Insolvency' started by UK Contractor Accountant, Mar 3, 2021.

  1. jimbof

    jimbof UKBF Enthusiast

    393 97
    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?!
     
    Posted: Oct 13, 2021 By: jimbof Member since: Apr 10, 2020
    #41
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  2. UK Contractor Accountant

    UK Contractor Accountant Verified Business ✔️

    5,489 1,028
    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.
     
    Posted: Oct 13, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
    #42
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  3. BDF-Anon

    BDF-Anon Guest

    0 0
    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 ...
     
    Posted: Oct 14, 2021 By: BDF-Anon Member since: Jan 1, 1970
    #43
  4. WaveJumper

    WaveJumper UKBF Legend

    2,243 563
    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
     
    Posted: Oct 14, 2021 By: WaveJumper Member since: Aug 26, 2013
    #44
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  5. Lisa Thomas

    Lisa Thomas UKBF Legend

    3,871 547
    @Gavin Bates calculated there will be c360,000 of unpaid BBL's to investigate...
     
    Posted: Oct 14, 2021 By: Lisa Thomas Member since: Apr 20, 2015
    #45
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  6. WaveJumper

    WaveJumper UKBF Legend

    2,243 563
    I like to know you going to be kept busy ....... and maybe out of trouble :):):)
     
    Posted: Oct 14, 2021 By: WaveJumper Member since: Aug 26, 2013
    #46
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  7. Chris Callaghan

    Chris Callaghan Full Member

    251 88
    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!
     
    Posted: Oct 14, 2021 By: Chris Callaghan Member since: Apr 10, 2018
    #47
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  8. Lisa Thomas

    Lisa Thomas UKBF Legend

    3,871 547
    I think we know the answer to that, Chris...!
     
    Posted: Oct 15, 2021 at 2:18 PM By: Lisa Thomas Member since: Apr 20, 2015
    #48
  9. Chris Callaghan

    Chris Callaghan Full Member

    251 88
    Afraid so! They could always contract out if they're struggling.....
     
    Posted: Oct 15, 2021 at 2:24 PM By: Chris Callaghan Member since: Apr 10, 2018
    #49
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  10. Lisa Thomas

    Lisa Thomas UKBF Legend

    3,871 547
    If only we knew of IPs that could assist...
     
    Posted: Oct 18, 2021 at 10:21 AM By: Lisa Thomas Member since: Apr 20, 2015
    #50
  11. Chris Callaghan

    Chris Callaghan Full Member

    251 88
    If only!
     
    Posted: Oct 18, 2021 at 10:25 AM By: Chris Callaghan Member since: Apr 10, 2018
    #51
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  12. UK Contractor Accountant

    UK Contractor Accountant Verified Business ✔️

    5,489 1,028
    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.
     
    Posted: Oct 20, 2021 at 9:36 AM By: UK Contractor Accountant Member since: Sep 18, 2013
    #52
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