The amount of bounce-back loans fully repaid is just 13% of the £46.9bn handed out to companies during the pandemic.£46.9 billion was lent during Covid under the scheme. While nearly three-quarters of borrowers are on track to repay, a significant £40.9bn remains outstanding.Despite £46.9bn being handed out in bounce back Loans during the pandemic, only 13% have been fully repaid. While nearly three-quarters of borrowers are on track to repay, a significant £40.9bn remains outstanding. Across all three Covid loan schemes, totalling £76.9bn, £21.5bn has been fully repaid. The Government has banned 831 company directors for fraudulent Covid loan applications, an 80% increase from the previous year. Banks refused £2.2bn worth of loans due to concerns about repayment, preventing further potential losses.
Dean Beale, chief executive at the Insolvency Service, said: “Tackling bounce back loan misconduct is a key priority for the Insolvency Service, and we are determined to use all our available powers to remove rogue company directors from the corporate arena.” Talk to APDL about your finances.
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HMRC CONTACTS PENDING ROR CLAIMANTS
Provisional claimants are urged to make a valid claim by 31 January 2025. HMRC is writing to taxpayers who made a provisional business asset roll-over relief (ROR) claim on asset sales in 2020/21 and haven’t replaced it with a valid claim. The deadline for making a valid claim is 31 January 2025. If a valid claim isn’t made by then, HMRC will withdraw the provisional claim, making the deferred capital gains tax (CGT) payable.
Taxpayers may claim ROR when selling a business asset if they buy a qualifying asset within a set period. This claim defers CGT on the sale. If taxpayers intend to buy a qualifying asset but haven’t done so when needing to claim ROR, they can make a provisional claim. They must replace this with a valid claim once they buy the asset.
HMRC advises taxpayers to respond if they have bought or will buy a qualifying asset by 31 January 2025 and notify HMRC by completing form HS290 for 2020/21. If unable to use the form, they should reply to HMRC’s letter with the requested information. HMRC has also urged claimants to contact HMRC now if they haven’t bought a qualifying asset and don’t intend to by 31 January 2025. HMRC will withdraw the provisional claim and send an assessment for any owed tax and interest. Prompt action will reduce the interest payable. HMRC may extend the period to acquire the qualifying asset, with conditions outlined in their letter. Claims made after 31 January 2025 will be considered on a case-by-case basis.
Later in the year, HMRC will write to taxpayers who haven’t replaced provisional claims for 2021/22. The deadline for valid claims for 2021/22 is 31 January 2026.
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