Phil Ashford

Registered with Property118.com
Tuesday 9th July 2013


Latest Comments

Total Number of Property118 Comments: 38

Phil Ashford

14:27 PM, 10th May 2020
About 7 months ago

Covid-19 Bounce Back loans for property businesses

Reply to the comment left by Terry at 10/05/2020 - 14:23People weren’t saying it they were “quoting it” from the most primary source that there is on the matter.
Under “Am I Eigible?” This still hasn’t changed despite the confusion on the matter. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/#f2... Read More

Phil Ashford

14:22 PM, 6th May 2020
About 7 months ago

Covid-19 Bounce Back loans for property businesses

Reply to the comment left by Will Taylor at 06/05/2020 - 14:07
Will, when you submit a CT600, you do so on a self declaration basis. It is a Director’s duty to do so compliantly. You may have delegated the responsibility to your Accountant, but you are accountable in full for the Ltd’s submission.

The CT600 splits out the various income streams between trading, investment and income from property - otherwise known as Schedule DI, Schedule DIII and Schedule A income streams. You may never have realised this.

The fact that your Accounts, which you authorised and signed and submitted as a Director in accordance with Companies Act 2006, says “sales” is irrelevant, it’s certainly not independent proof that it’s therefore “derived.... from trading activity”.

In the absence of “Trading Activity” being defined outside of its normal “ordinary meaning”, then one should prudently look for the best support for what it’s ordinary meaning could be. Tax Law and Case Law presents the best place for this as Income from Trading has been well tested.

There are people across the Internet telling me to stop using the tax legislation to bolster my question to Ranjan and Andrew. This seems rather perverse, in the sense that it appears like the most reasonable basis to ascertain what Trading Activity may be, when a government uses it in scheme eligibility rules, rather than how Dave/Jim/Sarah felt like interpreting it on a sunny Wednesday afternoon in May.

I’m sure when people are filling out their Tax Return for rent they will put it in the “Income from Land and Property” pages of an income tax return, they wouldn’t want to put it in the Self Employed boxes and pay National Insurance on it (it is trading income after all!).. I think Dave/Jim/Sarah would contradict their own definition of Trading Activity to make it suit them, rather than establish what the meaning may reasonably be and qualify themselves on that basis.... Read More

Phil Ashford

12:07 PM, 6th May 2020
About 7 months ago

Covid-19 Bounce Back loans for property businesses

Reply to the comment left by Ray Davison at 06/05/2020 - 12:00
Hello Ray. It does say that under Eligibility Criteria 1. But it doesn’t say that in Eligibility Criteria 8.

In effect it is saying, if your were engaged in any trading or commercial activity prior to 1 March AND your income in the year ended 31 Dec 2019 was made up of more than 50% from Trading Activity AND you have suffered negatively because of Coronavirus, THEN you can apply for up to 25% of ALL of your income (including rent) up to a £50k maximum government backed loan.

Reading just one Eligibility Criteria without taking into account leads you to a false conclusion and that is why I’ve asked both Ranjan and Andrew. Andrew does say in this video, that the Bounce Back Loans are not subject to the same 50% of Trading Activity as Small Business Interruption Loans, but that is demonstrably incorrect as per the link here (It’s Eligibility Criteria 8 that most landlords will fail on - not whether they are included under Eligibility Clause 1): https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/#f2

See “Am I Eligible” Then bullet point 8.... Read More

Phil Ashford

11:40 AM, 6th May 2020
About 7 months ago

Covid-19 Bounce Back loans for property businesses

Reply to the comment left by Luke P at 06/05/2020 - 11:29
Hi Luke. That’s one of the first places I commented. Ranjan has since liked other comments, typed replies to others but has skipped mine out.

He has also skipped my comment out on his FB page.

It’s eerily quiet wherever this 50% Trading Activity Eligibility Condition is raised.

On some platforms I’m taking a beating for being a Neg Head. I’ve only read the Eligibility Criteria of the government’s Bounce Back Loan Scheme instead of relying on the questions on a bank’s application form, which require us to confirm we are eligible for the scheme.... Read More

Phil Ashford

10:56 AM, 6th May 2020
About 7 months ago

Covid-19 Bounce Back loans for property businesses

Reply to the comment left by Robert Mellors at 06/05/2020 - 10:40
Robert - By that argument, you are arguing that private landlords should pay National Insurance on their rental profits... but as we all know, they don’t. Why? Because they are not Trading Profits...

Have the loan if you like, but start paying an extra 8% in tax, if landlords wish to argue that they are Trading. Hanging yourself with your own argument.... Read More