Budget and red diesel restrictions

J

Jimoz

Well-known member
I've got a business account paying 1%. Is it worth the hassle for a monkey though? Plus I can't see that rate staying at 1% with base rate where it is
 
GazCro

GazCro

Well-known member
End of the day it's a loan so it's not like it's free money it's to be paid back. Fair enough if you've overheads to cover and you need the short term injection to get you by but at the end of the day come 12 months time can you afford to start paying it back. If you're thinking of using it to buy a digger you may as well just get finance. There will no doubt be plenty take advantage of it who may not need it and that will just shaft the country more going forward.
 
J

Justme

Active member
End of the day it's a loan so it's not like it's free money it's to be paid back. Fair enough if you've overheads to cover and you need the short term injection to get you by but at the end of the day come 12 months time can you afford to start paying it back. If you're thinking of using it to buy a digger you may as well just get finance. There will no doubt be plenty take advantage of it who may not need it and that will just shaft the country more going forward.


You wont get many finance deals at 2.5% & a year free.
 
GazCro

GazCro

Well-known member
Possibly not but as been mentioned before interest on finance is tax deductible anyhow (provided you're making a few quid). I see bobcat have been quick to offer deferred payment deals.
 
JD450A

JD450A

Feral as Fk
Question really is whether you can make a investment with it that will return more than it's costing.

I've things in mind I could purchase/invest in that would see a good return, but if the economy tanks the gear purchased will be worth less and won't have anything to do....
 
F

fred

Well-known member
I do believe it’s 25% of turnover up to a max of 50k, I think you can give an estimate turnover but obvs the bank knows what’s gone through your account so they’ll know! No real point in me trying as my turnover has been low last 12months as I have been concentrating on new yard/getting married/building a new house - all the expensive things in one year 😳

its all self cert, you will get the full 50 if you apply.

There is also a payment holiday as well as no interest for the first 12 months.

You can also have multiple bites as each ltd co can apply in its own right as well as an individual sole trader. There are no checks above identity for fraud its all self cert.

No penalties for paying back early either.

Cant see free money for a year happening again so fill yer boots.
 
GazCro

GazCro

Well-known member
The worrying thing about this is the free money idea. At the end of the day it's borrowed off the government who are generating it by increasing national debt. Now i agree it will be invaluable to some businesses to allow them to survive, but those just looking at it for personal gain and who don't necessarily need it are gonna shaft the country long term going forward. A lot of people shouting about handouts want to think about tightening their belt a bit first.
 
doobin

doobin

Well-known member
The worrying thing about this is the free money idea. At the end of the day it's borrowed off the government who are generating it by increasing national debt. Now i agree it will be invaluable to some businesses to allow them to survive, but those just looking at it for personal gain and who don't necessarily need it are gonna shaft the country long term going forward. A lot of people shouting about handouts want to think about tightening their belt a bit first.
I hear you. But it's happening, so best get with the program! You (UK taxpayer PLC) gonna get shafted either way, might as well take the free lube.
 
GazCro

GazCro

Well-known member
I hear you. But it's happening, so best get with the program! You (UK taxpayer PLC) gonna get shafted either way, might as well take the free lube.
I see your angle on it and yeah take whatever money you can if it's gonna be to pay back through higher tax as that will affect everybody. But the loan idea isnt to pay back in tax its monthly repayments, so other than interest rate and deferred start its no different to any other loan already out there, just that it will devalue the pound. I'll try and stick with my minimal borrowing plan thanks.
 
D

DaveDCB

Well-known member
its all self cert, you will get the full 50 if you apply.

There is also a payment holiday as well as no interest for the first 12 months.

You can also have multiple bites as each ltd co can apply in its own right as well as an individual sole trader. There are no checks above identity for fraud its all self cert.

No penalties for paying back early either.

Cant see free money for a year happening again so fill yer boots.
I wonder how long it’s available for? I’e when will they pull the plug on the scheme? Might be handy to have and it it’s not needed just pay it back 👍🏼
 
GazCro

GazCro

Well-known member
I wonder how long it’s available for? I’e when will they pull the plug on the scheme? Might be handy to have and it it’s not needed just pay it back 👍🏼
I'd go on the gov website and have a look first it's no freebie. And it's not entirely government supported only for the first 12 months by the looks of it.
 
F

fred

Well-known member
The worrying thing about this is the free money idea. At the end of the day it's borrowed off the government who are generating it by increasing national debt. Now i agree it will be invaluable to some businesses to allow them to survive, but those just looking at it for personal gain and who don't necessarily need it are gonna shaft the country long term going forward. A lot of people shouting about handouts want to think about tightening their belt a bit first.

its going to be spent into the UK economy to keep our GDP up to stave off a recession and the associated increased borrowing costs the gov would have to pay. If half of the loans get paid back the gov will still be quids in.

If you have any doubt then grab £50k and put it away, if in 12 months time you not in a postion to repay it, treat yourself and bump the company as there is no security involved!
 
F

fred

Well-known member
I'd go on the gov website and have a look first it's no freebie. And it's not entirely government supported only for the first 12 months by the looks of it.

cant really expect the taxpayer to cover the 2.5% interest for the whole 6 year term.
 
GazCro

GazCro

Well-known member
cant really expect the taxpayer to cover the 2.5% interest for the whole 6 year term.
I wouldn't expect it to either. But look at it this way needed or not every business takes the grant and spends it on whatever. In 12 months time when things are tight only a small percentage can afford the repayments. Where is the economy gonna end up then.
 
F

fred

Well-known member
I wouldn't expect it to either. But look at it this way needed or not every business takes the grant and spends it on whatever. In 12 months time when things are tight only a small percentage can afford the repayments. Where is the economy gonna end up then.

most small businesses would take the winding up of their business pretty seriously I think and are going into this eyes open. That being said from a gov point of view its a a win win, these loans are being spent into other business in the end. So more cash sloshing around the economy is got to be good.

I try to look at it in a positive light.
 
GazCro

GazCro

Well-known member
most small businesses would take the winding up of their business pretty seriously I think and are going into this eyes open. That being said from a gov point of view its a a win win, these loans are being spent into other business in the end. So more cash sloshing around the economy is got to be good.

I try to look at it in a positive light.
I see what you're saying and I'm not arguing against it merely trying to point out it needs to be done in a controlled manner. It could be argued that pumping money into the economy now could just be prolonging the agony. I just think as a business if you don't need the money it may stand you in better stead later on when the s**t hits the fan.
 
doobin

doobin

Well-known member
I see what you're saying and I'm not arguing against it merely trying to point out it needs to be done in a controlled manner. It could be argued that pumping money into the economy now could just be prolonging the agony. I just think as a business if you don't need the money it may stand you in better stead later on when the s**t hits the fan.
It could be argued that if you NEED the money now, the its more likely that you will struggle to repay, as opposed to a business who doesn’t need it but can make it work, and get the money out in the economy.
 
JD450A

JD450A

Feral as Fk
After a chat with another member I'm most likely going to stick in for 20k after I speak to the accountant on monday.

Reasons being the figures work out to similar to what I pay monthly anyway. Yes It's another 4 years beyond where I intended to be loan free, but at 2.5% it's bottom end money and I cannot see the rates staying this low after Armageddon :oops:

Also transpires I can do it with my personal account which is the business account too. So rough plan is to take the money, Pay all the other loan off, be left with about £15k floating ready for the next step, be that a better workshop, lorry or similar.

Horses for courses and fk knows but :unsure: I don't like loans and the idea of taking more out to double my costs is a non starter.... but more out and keeping the same costs whilst moving forward with a year FOC..... worth a look.
 
L

Lynchy

Well-known member
Are people going through their current banks for the loan,seen a list,or approaching lenders you haven't used before?
See it says if one turns you down,apply to another?
 
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