Business bounce back loans were handed out in good faith by the government amidst the biggest hit on UK companies in recent memory. As a result, the loans were guaranteed. However, because of the generous terms of the loan, some were found guilty of taking advantage. This is now something HMRC are now heavily clamping down on.
Anybody found to have applied for and used their business bounce back loan for any reason other than to protect their firm against the financial damage caused by the pandemic could now find themselves in serious trouble.
As a result of the amount of people opting to take advantage of the scheme, severe punishments were brought in and enforced for those found guilty. These include:
- Major fines
- Disqualification as a company director
- Confiscation order of company/personal assets
- Potential imprisonment
If you as a business owner or director find yourself unsure on how you may have utilised your bounce back loan, it is crucial that you get in touch with a licensed insolvency practitioner as soon as possible to ensure that you are protected should HMRC find anything untoward has happened.