Here is the background story to the 9 year ban the Company Director named is starting today for BBL related wrongdoing.
On 29 October 2020, Henry John Augustus Vaughan (“Mr Vaughan”) caused Bondford Limited (“Bondford”) to apply for a Bounce Back Loan of £50,000 using an overstated turnover figure, when he knew or ought to have known that Bondford was not eligible for at least £47,423 of the loan.
In that:
- Under the Bounce Back Loan scheme a business that was established before 1 January 2019 could apply for a loan of between £2,000 and a maximum of £50,000, provided that the amount applied for did not exceed 25% of its turnover in the 2019 calendar year.
- A business that was established after 1 January 2019 could apply for a loan of up to 25% of the estimated annual turnover from the date that the business was started.
- On 29 October 2020, Mr Vaughan caused Bondford to apply for a Bounce Back Loan of £50,000.
- On the application, he stated that Bondford’s turnover was £200,000 for the calendar year 2019, he stated instead of using 2019 turnover he used an estimated turnover to complete the BBL application when the estimate of turnover for 12 months from when the business started was a provision only available for those companies that were formed after 01 January 2019.
- Bondford was incorporated on 23 October 2018.
- Bondford’s accounts prepared for the period ended 31 October 2019 recorded a turnover of £2,550.
- Mr Vaughan approved those accounts on 13 February 2020. Bondford’s accounts prepared for the period ended 31 October 2020 recorded a turnover of £10,307.
- Mr Vaughan approved those accounts on 3 February 2021.
- 25% of Bondford’s actual annual turnover in the year ended 31 October 2019 was £638.
- 25% of Bondford’s actual annual turnover in the year ended 31 October 2020 was £2,577.
- Therefore Bondford was not eligible for a Bounce Back Loan of £50,000.
- On 17 November 2020, Bondford received £50,000 into its bank account as a Bounce Back Loan.
- A debt of £50,000 in respect of the Bounce Back Loan is shown in Bondford’s Statement of Affairs.
