Any thoughts or input and directions to sources of information, should they exist yet, appreciated.
2 situations, one I can see happening a fair bit. The other I hope to see little of, but have had 1 client so far raise with me
1. Small co client, typically a 1 man band contractor type. No income since April say. Minimal expenses and low salary and dividend extraction. Takes a 25% of annual income COVID loan to support his personal earnings. He has to put food on the table and even cutting out all possible costs (loans/mortage/credit cards) we all need soemthing to live on.
I can see this happening a lot and assuming a return to work reasonably soon I dont think this is a long term issue.
Shorter term I can see this making for a lot of overdrawn DLA's at year ends and potentially insufficient time to make them good within the 9 month window.
Any rumblings from HMRC on this, perhaps a de minimis limit exemption of s455 assessment for a year or 2 to let people catch up.
2 More serious. 1 client has lied on the application to state a much larger turnover than the company has to receive the maximum BBL of £50,000. We dont know if this has been received or whether the bank has done any checks, like say the account turnover. Given the lack of personal guarantees and we assume likelihood of personal withdrawal of this cash, and likely inability to repay it. Should we given the opportunity to correct the error with the bank, repay the excess (if it has been received). Or should we move straight to disengagement and SAR.
My gut says we should at least give the opportunity to recant on a stupid bit of temptation. I am pretty sure many have been tempted to do this