If your small business took out a Bounce Back Loan (BBL) or received other COVID-19 financial support, there’s important news: the UK Government has launched a COVID finance amnesty, also known as the Voluntary Repayment Scheme, open until December 2025.
This is an opportunity to repay, correct, or disclose any COVID-era financial support, including Bounce Back Loans, CBILS, furlough overpayments, and grants that should not have been obtained.
What Is The COVID Finance Amnesty 2025?
The COVID finance amnesty is a time-limited window that lets businesses voluntarily repay any COVID support funds they shouldn’t have received, or can’t justify, before formal investigations begin. It is said to be on a no questions asked basis.
- Open until: December 2025
- Covers: Bounce Back Loans, CBILS, furlough (CJRS), SEISS, and local authority grants
- Goal: Encourage honest disclosure and repayment before tougher enforcement begins in 2026
In short, the Government appears to be saying:
If you come forward now and repay what’s owed, we’ll treat it as voluntary correction.
Why This Amnesty Matters For Small Business Owners
- Avoid penalties and investigations
If you used your Bounce Back Loan incorrectly (even unintentionally), repaying under this scheme could help you avoid fines or legal action. - Protect your business reputation
Acting early shows transparency and responsibility. By acting unprompted now even if you go into creditors voluntary liquidation and could be further investigated on the matter, your mitigation may well be stronger. - Reduce director risk
Misusing COVID funds can in some instance lead to personal liability or director disqualification. Using the voluntary scheme demonstrates “good faith”. - It’s time-limited — ends December 2025
After that, the government seems to have suggested more aggressive debt recovery and fraud enforcement will begin.
What You Should Do Right Now
If you’re a small business owner, here’s how to take action before the deadline:
1. Review Your COVID-Era Finances
Check all the support your business received — BBL, grants, furlough, SEISS — and whether you fully met the eligibility conditions.
2. Seek Professional Advice
Talk to an accountant or insolvency practitioner experienced in COVID loan issues. They may be able to help you calculate repayments and consider your compliance.
3. Make a Voluntary Repayment
Explain your situation and ask how to make a voluntary repayment under the amnesty. The sooner you contact them, potentially, the more options and time you may have.
For a free no obligation chat about any of the matters detailed above, please do get in touch for help. An expert will call you back or if you prefer exchange emails.
We can explore your situation and consider the best way to help you and your business needs. You can call us 020 3925 3613 or fill in the form below and will get back to you quickly. We Know Insolvency Inside Out.
What Next?
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If you have any questions then contact us as soon as possible for advice. Oliver Elliot offers a fresh approach to insolvency and the liquidation of a company by offering specialist advice and services across a wide range of insolvency procedures.
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Disclaimer
This page is not legal advice and is not to be relied upon as such. This article is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.
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