Bounce Back Loan - Can You Use This for a Director Loan? скачать в хорошем качестве

Bounce Back Loan - Can You Use This for a Director Loan?

In this part 3 of our Business Bounce Back Loan series we explore the relationship between a bounce back loan and a director loan. The bounce back loan was launched by the Chancellor Rishi Sunak this year to provide businesses struggling due to the coronavirus pandemic with much-needed financial support. The Bounce Back Loan has some very attractive interest and repayment terms which we've covered in the previous episodes of the series. The loan is available to small business, limited companies and LLPs to name a few. Accounting & Tax Academy Free Membership Site → 🌏 http://aidhanfinancial.com/accounting... 🔴 Part 3 of our Business Bounce Back Loan series, watch the full playlist here:    • Business Bounce Back Loan - What Can You U...   ⏱️ Time Stamps: 0:48 - A refresher on the basics of a Director Loan 2:06 - Can I use funds from the Business Bounce Back Loan as Director Loan? 3:34: Can I use funds from the Business Bounce Back Loan to repay an existing Director Loan? If you want my & my team's expert accounting and tax help, you can book a discovery call through our website → 🌏 https://www.aidhanfinancial.com/ One of the key points about the Business Bounce Back loan is that it is in effect a self certified loan. This means that you will receive the money now subject to basic checks. The broad strokes of this are, that if you can justify your use of the funds as providing economic benefit to your business, as stated in the terms and conditions you will have signed for the loan, then it is highly unlikely you will be penalised or face legal action, even if your company ceases trading and you're unable to pay it back. Rishi Sunak has also introduced the Pay as you Grow scheme which we have covered in this series already. We often get asked can a business bounce back loan be used to take a personal director loan. The video explains there is nothing stopping a director from borrowing funds from their own company, even if those funds have partially come from a bounce back loan. If your business then goes on to repay the bounce back loan in accordance with the terms and conditions of the loan, then it is highly unlikely too many questions will be asked of you, the director(s). There are time limits on repaying back a director loan (in the context of money you as a director have borrowed from your own company) before what is known as a Section 455 tax charge becomes payable by your company at the rate of 32.5% on any outstanding director loan amount. As mentioned in this video, you could in theory use the funds from a Bounce Back Loan to pay the Section 455 Tax Charge, 32.5% of an outstanding directors loan. However, for the reasons mentioned above regarding the terms and conditions of the loan, if your company then struggles to pay back the bounce back loan and you have used the funds to pay the S445 charge from a directors loan, this could land you in hot water with regards to the bounce back loan. You would have to be able to demonstrate that by using funds from a bounce back loan to pay the section 455 tax on a director loan was done wholly for business purposes and not personal de-risking. We will be updating this playlist with more details about the bounce back loan scheme as and when the chancellor Rishi Sunak releases them. Until then make sure to like and subscribe to keep up to date with all of the latest Tax & Accounting news. ★☆★ OUR MISSION ★☆★ Me & my team are dedicated to helping and empowering YOU to 'Know Your Numbers' so you can make calculated and informed decisions in your business, company and personal finances towards your definition of success. ★☆★ OUR PHILOSOPHY ★☆★ If you take care of your numbers (finances), your numbers will take care of you, your family and those you value the most. 🔴 DISCLAIMER Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement. #bouncebackloan #rishisunak #directorloan