Several company directors of coaching and construction companies were banned due to running a business for 11 years, and fraudulently claiming bounce-back loans. They received bounce-back loans totalling £73,000.
The construction company of the directors involved in this case was officially liquidated in November 2021, however, it stopped trading in October 2019. Yet, they applied for the bounce-back loan which was offered to companies struggling during Covid.
As the company was investigated, it was found that despite the company not trading during 2020, the directors still claimed bounce-back loans, and the company’s turnover was manipulated to claim the maximum benefits.
The Manchester-based firm was owned by a director that also operates a charity that aims to support the education of the youth. However, despite his coaching firm collapsing and the children not being in schools in 2020, an HMRC investigation confirmed that he was indeed not eligible for the £25,000 bounce-back loan he received.
HMRC insists on reminding business owners that they shouldn’t manipulate or apply for government support schemes for which they do not qualify. HMRC imposes strict disqualification of company directors who are found guilty during tax investigations.
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