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£17Billion of Bounce back Loans losses predicted

Thoughts?

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By williams lester accountants
09th Dec 2021 11:55

I think it was utterly predictable, should have let me handle the whole process for a fee.....

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Replying to williams lester accountants:
RLI
By lionofludesch
09th Dec 2021 12:26

williams lester accountants wrote:

I think it was utterly predictable, should have let me handle the whole process for a fee.....

A fee of £17 billion ?

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Replying to lionofludesch:
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By adam.arca
09th Dec 2021 12:53

lionofludesch wrote:

williams lester accountants wrote:

I think it was utterly predictable, should have let me handle the whole process for a fee.....

A fee of £17 billion ?

Now, now, Mr Williams Lester Accountants probably aren't IPs.

A fee of let's say £16.5bn

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Replying to adam.arca:
By williams lester accountants
09th Dec 2021 14:19

I would have undertaken the work for £1bn, and made a decent profit, whilst saving the country billions.......

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Replying to williams lester accountants:
RLI
By lionofludesch
09th Dec 2021 14:22

williams lester accountants wrote:

I would have undertaken the work for £1bn, and made a decent profit, whilst saving the country billions.......

I have every confidence in Boris collecting all this money.

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By justsotax
09th Dec 2021 12:01

offer money for free with little or no checking.....what could possibly go wrong.

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By Justin Bryant
09th Dec 2021 12:03

Lisa, how much would you (or your clients) pay (on average, all else being equal etc.) for an assignment of the lender's £50k claim (to chase directors under IA 1986)?

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Replying to Justin Bryant:
Lisa Thomas
By Lisa Thomas
09th Dec 2021 13:57

Good question, Justin!

I wouldn't have the power to pursue Directors under IA86 unless appointed as office holder, i.e a Liquidator.

To become Liquidator, a creditor would need to petition the court for a compulsory liquidation. That will cost somewhere between £2-4k in court fees, legal fees and VAT. So the Bank will need to fund this upfront.

The Official Receiver will be the Court appointed Liquidator. Then the creditors would have to vote/support us taking over from the O.R.

I would have a take a view on it before accepting the case. I might take a punt, depending on what information is available on what's happened and the directors position and how busy I am.

I would be more inclined to accept batch of cases from the O.R but their rota doesn't currently work like that.

A better idea might be for the Insolvency Service to farm these types of cases out to IPs in batches. Dissolved companies too. I think we could definitely get some recoveries if we could investigate dissolved companies.

Not sure that has answered your question really. Probably because I'm not sure!

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Replying to Insolvency Practitioner:
ALISK
By atleastisoundknowledgable...
10th Dec 2021 12:17

So fees of <£1bn to recover £17bn.

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Replying to atleastisoundknowledgable...:
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By lionofludesch
10th Dec 2021 12:24

atleastisoundknowledgable... wrote:

So fees of <£1bn to recover £17bn.

I like your confidence that it'll all be recovered.

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Replying to Insolvency Practitioner:
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By Jim100
10th Dec 2021 17:06

I can't see banks enforcing liquidation and pay IP fees so basically who will. There are a number of dormant companies with bounceback loans - some whom have never traded. Presumably these companies will just drift forever.

One of my clients who took a bounceback loan of 10K based on a turnover of 50K to fund another business. My client bank account was closed on the basis that the company accounts were overdue. This didn't make sense as why close a bank account when there is 10K bounceback loan My client was trading successfully and would have paid the bounceback loan off. This that mean the bank has written off the bounceback loan ?

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paddle steamer
By DJKL
09th Dec 2021 12:44

Thoughts ? Mainly envy.

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By Tax Dragon
09th Dec 2021 13:00

They could get that back in a year if they enforced transfer pricing etc properly.

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By WhichTyler
09th Dec 2021 13:49

Presumable a lot of it will end up back in the economy, boosting sales of gold plated bathrooms/steaks, new houses, speed boats and racehorses. So not a complete waste, apart from the bits that go offshore. Not the most equitable way of boosting the economy but it will provide some employment...

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Replying to Joanne Birtwistle:
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By Hugo Fair
09th Dec 2021 17:20

And, prior to that, here https://www.accountingweb.co.uk/any-answers/its-official-hmrc-go-soft-on... posted a week ago

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Replying to Hugo Fair:
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By Paul Crowley
09th Dec 2021 18:45

https://www.accountingweb.co.uk/any-answers/its-official-hmrc-go-soft-on...
Link did not get there
Posted... On the same line was probably the reason

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Replying to Paul Crowley:
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By Hugo Fair
09th Dec 2021 19:45

Well I never knew about that particular foible of this antiquated software ... but Thanks (both for spotting and for publishing corrected URL).

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