Whether you need help with growing your business or advice on optimising your personal or family finances, we are here to help you get the best results.

Rise in company registrations prompts BBL fraud concerns

Companies House has revealed an increase in the registration of new companies after the bounce-back loan scheme was introduced, prompting concerns around fraudulent loan claims.

At the end of June 2020, there were 4,513,392 companies on the total register and 4,100,323 on the effective register.

The number of incorporations in the second quarter of this year also increased by 3.6% compared with the same period last year, whereas the number of dissolutions in the second quarter of 2020 decreased by 89.3% to 121,264.

Reports suggest some of these companies have been created solely for the purposes of applying for Government-backed bounceback loans.

A BBC investigation found criminals are setting up fake companies on an industrial scale and successfully applying for the loans, securing up to £50,000 on each application.

Its analysis of Companies House data found company registrations increased significantly after the bounceback loan scheme was announced in April, reaching a record 21,616 per week by the end of June.

However, it is unclear how many of these new companies might be fake or have even applied for the bounceback loan.

The loans, which must be paid back within a six-year period, are backed by the Government and issued by 12 UK banks.

Speak to us about your finances.