Here we are, December the 20th 2021 and still no word from Rishi Sunak on any type of emergency help for SMEs regarding all that is happening around us. In the meantime, until he hopefully does appear, here is another case of Bounce Back Loan wrongdoing.
Amin Younis, caused Peri Peri (NE) Ltd (“Peri”) to apply for a Bounce Back Loan of £50,000 in May 2020 after it had ceased trading and of the proceeds of the loan used £12,235 for personal use, contrary to the criteria of the scheme.
In that:
- Peri ceased trading on 27 December 2019 and both its current and savings account were emptied.
- There is no evidence that Peri was carrying on business on 01 March 2020 or was engaged in trading or commercial activity at the date of the Bounce Back loan application which was contrary to the terms of the scheme
- On 13 May 2020, £50,000 from a Bounce Back Loan was credited to Peri’s current account resulting in a balance of £49,024 the account having been subject to interest and commission charged whilst it was inactive.
- Between 26 June 2020 and 14 August 2020 Amin Younis withdrew £42,235 (in transfers totalling £37,235 and £5,000 in cash).
- A further £6,871 was used to pay business expenses and £4 received from an account loyalty reward, leaving the account £77 overdrawn.
- On 25 September 2020 Amin Younis repaid £30,000 into the current account.
- A payment of £6,000 was paid to the liquidator in relation to the liquidation costs.
- The residual balances of £23,916 (following Commission and interest charges) & £10 in the current and savings account respectively are used in set off against the outstanding Bounce Back Loan, resulting in a liability to the bank of £26,074.
- Amin Younis has personally benefited to the amount of £12,235 from the Bounce Back Loan, he caused Peri to obtain contrary to the terms of the bounce back loan scheme which precluded use of the loan for personal benefit
- On 16 December 2019, Amin Younis caused Peri to transfer £84,599, the full balance of the company’s savings account, to a third party at the risk and to the ultimate detriment to HMRC.
- The transaction was made at a time when he was aware of HMRC investigation and a potential VAT liability, following Peri’s failure to register, submit returns or make any payments to HMRC in a timely manner.
- At liquidation Peri’s liability to HMRC is £85,599 inclusive of penalties.