One such case involved 24-year-old Muhammad Anas, who accepted a six-year disqualification undertaking starting on 2 April 2024.

Mr Anas, of Mamore Place, Glasgow, was the director of internet and mail order sales firm TAA Clerical Services Limited.

The company successfully applied for the maximum £50,000 Bounce Back Loan in June 2020, but the funds were then transferred to an unconnected company. Mr Anas failed to provide an explanation for this transfer despite requests from the Insolvency Service.

Mr Anas’ disqualification is one of 831 directors who were banned for Covid financial support scheme misconduct during the 2023-24 financial year. The average disqualification length is of more than nine-and-a-half years.

The Covid Bounce Back Loan Scheme, which was introduced at the start of the pandemic in 2020, allowed businesses to borrow between £2,000 and £50,000 at a low interest rate, guaranteed by the government.

Businesses were entitled to a single loan of up to 25% of their turnover under the scheme. Individuals could only use the loans for the economic benefit of the business and not for personal purposes.

Dean Beale

Dean Beale, chief executive at the Insolvency Service, said: “Tackling Bounce Back Loan misconduct is a key priority for the Insolvency Service and we are determined to use all our available powers to remove rogue company directors from the corporate arena.

“It is important the Insolvency Service is taking such robust action to clamp down on directors who abused Covid support schemes and took from the public purse during the worst global pandemic for 100 years.

“We have teams dedicated solely to investigating Bounce Back Loan misconduct that are committed to taking action against those who provided misleading information to receive money they were not entitled to.”

Enforcement action taken against those that have abused the support schemes has ranged from companies being wound-up in court to criminal convictions, compensation orders and director disqualifications.

The Insolvency Service has successfully applied to have 1,430 directors banned for abusing Covid support schemes since it started investigating potential financial wrongdoing connected to the scheme in 2021.