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PostPosted: Mon May 04, 2020 4:28 pm 
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Well I've just applied via HSBC which isn't my main account but I use it to send money from abroad.

Downloaded a copy of my 2018/19 tax return, as I use Gov Gateway and was bothered many years ago to wait for my password ( :D ), changed the file to a PDF via Soda and away the application went.

Like the idea you can pay early with no penalties/fees, but 2.5% for a personal loan is as good as you are ever going to get.

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PostPosted: Mon May 04, 2020 4:43 pm 
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Sussex wrote:
Well I've just applied via HSBC which isn't my main account but I use it to send money from abroad.

Downloaded a copy of my 2018/19 tax return, as I use Gov Gateway and was bothered many years ago to wait for my password ( :D ), changed the file to a PDF via Soda and away the application went.

Like the idea you can pay early with no penalties/fees, but 2.5% for a personal loan is as good as you are ever going to get.

It's certainly a very good deal, and application process does look straightforward, as long as you have a business account with a participating bank - that way they've already got your ID stuff etc, so a whole lot different compared to applying to a bank that you've no pre-existing relationship with.

And some banks taking a different approach to personal accounts and those with business accounts at other banks, eg:

Bank of Scotland wrote:
If Bank of Scotland do not already currently provide your main Business Current Account, please speak to your main bank for support in the first instance.

We are currently reviewing how we might support existing customers who use their Personal Current Account for business purposes - an update will be provided here later this week.

Anyway, apparently Barclays receiving 35 applications per minute, and Lloyds getting 5,000 in first few hours. So suspect the likes of me won't hear anything for a few days [-(


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PostPosted: Mon May 04, 2020 7:31 pm 
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not bothering am scratching around for whatever money I can scrape together and have tried to eliminate as much business costs as I can just hope can get enough from self employed scheme to get me through. It's all very well borrowing money but it has to be paid back so i'd rather try and not borrow any

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PostPosted: Mon May 04, 2020 7:55 pm 
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Sussex wrote:
Well I've just applied via HSBC which isn't my main account but I use it to send money from abroad.

Downloaded a copy of my 2018/19 tax return, as I use Gov Gateway and was bothered many years ago to wait for my password ( :D ), changed the file to a PDF via Soda and away the application went.

Like the idea you can pay early with no penalties/fees, but 2.5% for a personal loan is as good as you are ever going to get.


I didnt need a copy of my 2018/19 tax return, did I miss something?


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PostPosted: Mon May 04, 2020 8:17 pm 
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bloodnock wrote:
I didnt need a copy of my 2018/19 tax return, did I miss something?

Yes, several posts' worth :?


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PostPosted: Mon May 04, 2020 8:26 pm 
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StuartW wrote:
bloodnock wrote:
I didnt need a copy of my 2018/19 tax return, did I miss something?

Yes, several posts' worth :?


Standard practice....Last post and work backwards until the urge to sleep overtakes me.


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PostPosted: Tue May 05, 2020 12:11 pm 
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Sussex wrote:
Downloaded a copy of my 2018/19 tax return, as I use Gov Gateway and was bothered many years ago to wait for my password ( :D ), changed the file to a PDF via Soda and away the application went.

Well I requested my access code last night, and it's supposed to arrive by post within seven days. So that'll hopefully happen if HSBC need more info for my application or I have to apply elsewhere and need my tax return.

But, regarding what I was saying yesterday, I may have actually been relatively lucky even being able to apply to HSBC (although that's not to say I'll be accepted) because most seem to be accepting applications only from existing customers with business accounts, although it seems that most will be changing that in due course. But that looks like one huge aspect of the scheme that's been overlooked - people whose banks aren't taking part in the scheme and those who use a personal account for business purposes.

Some interesting comments here though (without hopefully sending anyone to sleep :roll: ) from Martin Lewis of the Money Saving Expert site, mainly about using the cash for personal purposes - as I said, strictly speaking it shouldn't be used for that, but difficult to draw the line in a micro-business scenario:

Quote:
Martin's analysis: 'It’s not ideal, but you can turn these loans into your own Government income support scheme'

MSE's founder Martin Lewis said: "While millions who work for themselves are covered by the Government’s income support scheme, huge swathes aren’t eligible, and don’t get any help. That includes those who started businesses after roughly September 2018, freelancers with only some self-employed work, those with profits over £50,000 and people who work for themselves via a limited company.

"In that case as well as their main use to support all small businesses, bounce back loans are a potential stop-gap solution to the personal income hump caused by the coronavirus economic cataclysm. Clearly this is far from ideal, these are loans, the official support systems are non-repayable grants. However, until and if something else is developed, for many this is the only show in town (though always check if you’re eligible for universal credit).

"And while sadly, it doesn’t currently looking likely that the support net will be broadened, as these are interest and payment free for the first year, if another scheme were to shortly launch, you can simply repay it at no cost.

Nothing in the rules stops you using Bounce Back to support your income

"Now on to the technical. There is nothing in the rules stopping you using the Bounce Back money to support your income. However as I know a positive ‘you can do this’ is better than a ‘there’s nothing saying you can’t’, we've got confirmation in writing from the Treasury.

"It has confirmed there are no strict rules on what these loans may be spent on, as long as it is under the banner of working capital or investment – ie, things to keep the lights on like debt service, bills, running costs and crucially wages. And more so, again it has confirmed you can apply for this loan even if the only reason is to support your income.

"Bounce back loans are therefore a channel for help. The lack of repayment and interest in the first year makes these loans far more attractive for a struggling business or struggling business owner than normal finance. If things improve within a year, you can clear the loan before there's any actual cost - and if it takes longer and there is a cost, it's pretty cheap.

"In fact it’s so cheap compared to standard commercial lending, it is worth considering using this loan to pay off existing finance, to give yourself a year long payment and interest holiday, followed by reduced cost in the longer term.

"Of course my general rule is never borrow more than you need to. And in principle that is right. However for the financially self-disciplined, there is an argument that as this is interest-free for a year, granting yourself a borrowing facility now in case it's needed isn’t risky. Take what you may need, then store it in top savings (you’re protected up to £85,000) and hopefully you won’t use it and can then repay it at no cost before the year is up.

"However only do this if you won’t use the money unnecessarily or overly liberally. If you don’t trust yourself, don’t do it. Only borrow the very minimum you need, and aim to repay as quickly as possible. Ultimately this is still debt, and debt’s like fire, used well it’s a useful too, used badly it burns."

The full article can be read here, and it also contains a useful summary of what banks are taking part and who's eligible to apply to them, although obviously they'll be changing the rules over the next few days, as indeed some of the information for each bank states.

https://www.moneysavingexpert.com/news/ ... -launched/

(Of course, even the 'experts' can get it wrong. Some of the info Money Saving Expert was putting out about the self-employment grants was saying that they would be granted irrespective of whether self-employed person had been impacted by Covid-19, and to that extent anyone unaffected or was even doing better than normal should simply look to their conscience as regards whether or not to apply for a grant. I actually contacted MSE for clarification, and didn't get a response, but it seems they've updated their stuff to reflect the fact that your income has to have been adversely affected by Covid-19 to be eligible for the grant.)


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PostPosted: Tue May 05, 2020 12:26 pm 
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Sussex wrote:
Downloaded a copy of my 2018/19 tax return, as I use Gov Gateway and was bothered many years ago to wait for my password ( :D ), changed the file to a PDF via Soda and away the application went.

By the way, Mr Sussex, what format is the tax return file in? I would have guessed the download from the Government Gateway would be a pdf, but obviously not :-k

(Reason I'm curious is that spent several hours yesterday fannying around with images, file formats, file converters, two different word processors, blah, blah and it was doing my nut in ](*,) )


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PostPosted: Tue May 05, 2020 12:38 pm 
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edders23 wrote:
not bothering am scratching around for whatever money I can scrape together and have tried to eliminate as much business costs as I can just hope can get enough from self employed scheme to get me through. It's all very well borrowing money but it has to be paid back so i'd rather try and not borrow any

I have a different view on this. I can apply for the loan and put it into our business savings account so that we don't just use it unless it is necessary but it is there if it is needed. If it is not needed then just before the 12 month interest free payment free time is up we can simply repay the whole loan and it will have cost us nothing. If however we do use some of the loan it can be repaid over another 5 years if necessary at an interest rate of 2.5% so what is not to like?

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PostPosted: Tue May 05, 2020 12:53 pm 
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grandad wrote:
edders23 wrote:
not bothering am scratching around for whatever money I can scrape together and have tried to eliminate as much business costs as I can just hope can get enough from self employed scheme to get me through. It's all very well borrowing money but it has to be paid back so i'd rather try and not borrow any

I have a different view on this. I can apply for the loan and put it into our business savings account so that we don't just use it unless it is necessary but it is there if it is needed. If it is not needed then just before the 12 month interest free payment free time is up we can simply repay the whole loan and it will have cost us nothing. If however we do use some of the loan it can be repaid over another 5 years if necessary at an interest rate of 2.5% so what is not to like?

Indeed, and Edders should read Martin Lewis's comments above about the benefits of applying. Can't really see much in the way of downside, as long as you're sensible with the money and don't go daft with it.

I've not applied for as much as I could (it works out at about 17% of turnover, as opposed to the 25% limit, and I hope not to have to use the whole amount). But it's more an insurance policy for the rest of the year, since it doesn't look like the grant scheme will be extended, and who knows how long things will take to get back to normal. And I've got my three-year badge and plate in the autumn, and insurance at around that time as well. And if things work out the loan can be repaid within the year, thus at zero cost, or repaid over six years at a very low interest rate. (And even after the first year it can be repaid without penalty.)

For a start, if I had to apply for one-year licences to cut costs then the effective interest rate on that would be enormous, as would be an instalment plan for my insurance [-(

(Of course, Edders could have access to cash at zero or very low cost anyway, but some of us don't have that luxury :-o )


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PostPosted: Tue May 05, 2020 6:15 pm 
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By the way, Mr Sussex, what format is the tax return file in? I would have guessed the download from the Government Gateway would be a pdf, but obviously not :-k

It is not.

I use Chrome and it downloaded it via some Chrome mail version. However you can download Soda for a free trial and convert it to a PDF in seconds.

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PostPosted: Wed May 06, 2020 2:12 pm 
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Bounce back loan money is already in my account.

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PostPosted: Wed May 06, 2020 2:31 pm 
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(Of course, Edders could have access to cash at zero or very low cost anyway, but some of us don't have that luxury :-o )

what access to cash I am managing about £100 to £140 a week from working that's not enough to live on but all of my bank accounts are in credit so don't really see the need IF I get the self employed credit and I have passed the eligibility test on that

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PostPosted: Wed May 06, 2020 6:24 pm 
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grandad wrote:
Bounce back loan money is already in my account.

=D>

Thanks for letting us know :roll:

Any further useful info? I'm assuming it's your normal bank and you have a business account with them?

Saw this in the Guardian this morning about complaints because most banks just allowing their own customers to apply, and not that many banks actually in the scheme at this point. But article doesn't mention the other elephant in the room, namely that even those banks largely confining the loans to those with a business account, and those using a personal account for business purposes aren't eligible (at this stage at least).

https://www.theguardian.com/business/20 ... back-loans


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PostPosted: Wed May 06, 2020 6:58 pm 
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This more recent article in the Guardian making the point about the lack of banks in the scheme, and the prioritisation of their existing customers, particularly those using business accounts.

Government also trying to scale back the furlough scheme for employees, so with the bounce back loans up and running definitely no extension of the self-employment grants, by the looks of it :sad:


Small firms secure £2bn in bounce-back loans in first 24 hours

https://www.theguardian.com/business/20 ... oronavirus

More than 69,000 struggling UK businesses get funding from coronavirus scheme

Small businesses have secured more than 69,000 government-backed loans worth in excess of £2bn in the first 24 hours of the scheme’s launch.

The number represents 53% of the 130,000 applications lodged by businesses trying to access cheap funding through the bounce-back loan scheme (BBLS), which launched on Monday morning as part of the government’s response to the Covid-19 lockdown.

The number of applications surged to more than 200,000 by Tuesday evening, according to a Guardian tally of individual lenders. The Treasury said banks were trying to process applications as quickly as possible.

Small businesses have been scrambling to apply for the scheme, which offers 100% government-backed loans worth up to £50,000, capped at 25% of a turnover, at an interest rate of 2.5%. The first 12 months are payment- and interest-free.

The chancellor, Rishi Sunak, said: “These loans will help them bounce back from this crisis, getting money fast, so it’s great to see close to 70,000 businesses benefiting in just the first day. It’s vital this speedy progress continues in the days and weeks ahead.”

The Treasury’s figures suggest there is ample demand for cheap government cash among small businesses. Applications via the fast-track scheme, which involves a simple online form, far exceed those made through the much-criticised coronavirus business interruption loan scheme (CBILS).

According to the latest data, UK lenders have received 52,807 formal CBILS applications and approved 25,262 CBILS loans worth £4.1bn since that scheme’s launch on 23 March. The programme – which requires additional checks and processing, and has varying interest rates and a lower government guarantee – has been criticised for being too slow in getting cash to small and medium-sized businesses that need it most.

However, the bounce-back loan scheme has also been criticised for approving issuance by a small number of lenders before its launch, compared with the 40 lenders that were authorised for CBILS at the start of the original programme.

The state-owned British Business Bank, which is managing the scheme, has so far accredited only eight lenders to dole out funds, including Lloyds, Santander, Virgin Money UK, TSB, Danske Bank and Barclays.

Most of those lenders are restricting loans to their business customers, raising fears that many small businesses that hold accounts with other banks could end up being locked out of the scheme.

HSBC and RBS are accepting external applicants for the emergency cash loans but they are still prioritising their account holders.

The British Business Bank expects to accredit more lenders over the coming weeks but has not confirmed how many have applied.

Mike Cherry, the national chairman of the Federation of Small Businesses, said despite a “promising start” for the bounce-back scheme, some firms were still reporting difficulties.

“Unfortunately, we are hearing reports that bounce-back application forms are hard to access or inquiries are simply being acknowledged with a ‘We’ll call you’ message and nothing further,” he said.

“Many of the most vulnerable business owners – particularly sole traders – only have personal banks accounts and, as a result, are being told they cannot access a bounce-back loan. It’s vital that they are helped to secure the finance on which many will depend to make it through this incredibly challenging time.”


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