£50K Interest Free Loan for 12 Months £50K Interest Free Loan for 12 Months - Page 33
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Posts 321 to 329 of 329
  1. #321

    More time posting than coding


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    Quote Originally Posted by GhostofTarbera View Post
    In just about every case
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    I'm just wondering if anyone has seen the smallprint in the BBL documents/rules or had it explained to them by an accountant to confirm this understanding?

  2. #322

    Contractor Among Contractors


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    Quote Originally Posted by hgllgh View Post
    I'm just wondering if anyone has seen the smallprint in the BBL documents/rules or had it explained to them by an accountant to confirm this understanding?
    It is a debt taken on by a Limited Company with no personal liability. So long as it is used correctly - e.g. paying Salary - if the business ceases to be a going concern and is closed they are in the queue with any other creditors.

  3. #323

    Nervous Newbie


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    So let me get this straight.

    I pay myself a minimal amount, no pension contributions.

    Would I be ok to do the following:

    1. Get 50k loan
    2. Carry on paying myself for 12 months
    3. If I get work, pay the loan off entirely asap
    4. If I don't get work, close up shop after 12 months and owe the government whatever is left in my account. Not worry because it's not personal liability

    I get that suddenly paying myself a pension would look didn't is they every check up on it.

  4. #324

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    Quote Originally Posted by Antimus View Post
    So let me get this straight.

    I pay myself a minimal amount, no pension contributions.

    Would I be ok to do the following:

    1. Get 50k loan
    2. Carry on paying myself for 12 months
    3. If I get work, pay the loan off entirely asap
    4. If I don't get work, close up shop after 12 months and owe the government whatever is left in my account. Not worry because it's not personal liability

    I get that suddenly paying myself a pension would look didn't is they every check up on it.
    The short answer is: yes.

    The slightly longer answer is that you'll need to keep an eye on what policy/strategy the banks adopt for chasing payments (i.e., how aggressively they chase), because there will be one across banks/government. You will also need to keep an eye on your fiduciary duties as a director, in order to ensure that those company liabilities cannot be transferred to you. For example, your business needs to be an ongoing concern; as soon as it becomes clear to you that the business isn't viable, you need to stop trading. Also, you need to avoid the preferential treatment of creditors (such preference payments, made within the last two years to connected persons, for example, can be set aside by the liquidator). This probably sounds a bit "woolly" because it is, but keeping decent records of your attempts to keep trading would be sensible.

  5. #325

    Nervous Newbie


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    If they are that dogged about investigating then the only issue I can see is that they would likely say that me looking for 500/day consultant work and not looking for £100/day grunt work is "not looking for work"

  6. #326

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    Quote Originally Posted by Antimus View Post
    If they are that dogged about investigating then the only issue I can see is that they would likely say that me looking for 500/day consultant work and not looking for £100/day grunt work is "not looking for work"
    Yes, I don't think they will (or would have the grounds) to make that case, but it doesn't hurt to keep on top of the rules, particularly your fiduciary responsibilities.

  7. #327

    Still gathering requirements...


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    Default carrying on business on 1 March 2020

    "carrying on business on 1 March 2020"
    "impacted by coronavirus"


    Effectively does this restrict the loan to those Ltds which:
    a. had a contract on 1 March 2020 and
    b. that contract subsequently ended?

  8. #328

    Double Godlike!

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    Quote Originally Posted by bingocaller88 View Post
    "carrying on business on 1 March 2020"
    "impacted by coronavirus"


    Effectively does this restrict the loan to those Ltds which:
    a. had a contract on 1 March 2020 and
    b. that contract subsequently ended?
    It means that you had to be a viable business as of 1 March 2020 - not one already in distress. You don't have to have had a contract cancelled/end, just need to have been adversely impacted by events related to CV-19. So that could mean a reduction in working hours or a reduction in fees, changes in client or supplier payment terms, staffing issues, increased costs to the company, etc etc

  9. #329

    More time posting than coding

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    Quote Originally Posted by Antimus View Post
    If they are that dogged about investigating then the only issue I can see is that they would likely say that me looking for 500/day consultant work and not looking for £100/day grunt work is "not looking for work"
    Come on, things aren’t that bad. 500 a day for a consultant!?

    You can look for whatever work you like.

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