Read on for the details of this case.
On 25 July 2020 Jacqueline Docherty (“Mrs Docherty”) caused Ashley Alexander Hair Studio Ltd (“Ashley Alexander Hair”) to make a Bounce Back Loan (“BBL”) application for £50,000, when she knew or ought to have known that Ashley Alexander Hair was only eligible to apply for a BBL of £20,062.
In that:
- Under the BBL scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover.
- The turnover figure was self-certified by the application.
- The turnover figure required was that for the calendar year 2019, or where a business was established after 1 January 2019 it is their estimated annual turnover from the date that the business was started.
- Ashley Alexander Hair was incorporated on 17 December 2014.
- On 25 May 2020 Mrs Docherty signed a BBL agreement on behalf of Ashley Alexander Hair for an amount of £50,000 declaring that its turnover was £200,000.
- Accounts for Ashley Alexander Hair for the period from 01 January 2019 to 31 December 2019 record turnover to be £80,248, therefore Ashley Alexander Hair was entitled to a maximum BBL of £20,062.
- By making an application to borrow £50,000 Ashley Alexander Hair received £29,938 more than it was entitled to.
- On 28 May 2020 Ashley Alexander Hair received the BBL funds of £50,000 into its bank account.
- Ashley Alexander Hair entered creditors voluntary liquidation on 21 December 2022.
- Total liabilities at liquidation amounted to £53,688, of which £42,365 related to the amount owed in respect of the BBL.
