Read on for the details of this case.
On 25 August 2020 Mr Stephen Clyde (“Mr Clyde”) caused Advanced Valeting and Detailing Limited (“AVD”) to overstate the company’s turnover in order to obtain a £50,000 Bounce Back Loan (“BBL”) when he knew or ought to have known that AVD was not eligible for this amount.
In that:
- Businesses could apply for a BBL of up to 25% of their 2019 turnover, from a minimum of £2,000 to a maximum of £50,000.
- Where a business was incorporated after 01 January 2019, they were asked to estimate their turnover.
- AVD was incorporated on 14 September 2016.
- AVD’s financial accounts for the year ended 30 September 2019 show turnover of £57,936.
- An analysis of AVD’s bank statements from January 2019 to December 2019 shows that trading income received amounted to £55,875.
- On 25 August 2020, Mr Clyde applied for a £50,000 BBL on behalf of AVD, declaring the 2019 turnover to be £200,000.
- Based on the turnover of £57,936, as recorded in the financial accounts, AVD was eligible for a maximum BBL of £14,484 and therefore received £35,516 more than it was entitled to.
- AVD entered liquidation on 20 July 2022 owing at least £42,552 in respect of the BBL.
