Director of Kent car sales company banned for Covid loan abuse
Source: gov.uk (2025-05-07)

Joseph Harrison, the director of South East Commercials Ltd was disqualified as a director for 12 years and ordered to repay £38,295.

Car dealer Joseph Harrison applied for two Covid Bounce Back loans, totalling £90,000 on behalf of his company.

He was only entitled to one Covid loan for his company, South East Commercials Ltd, under the rules of the scheme.

Harrison was subject to a director disqualification order which came into effect on 6 May 2025 following a hearing at the High Court in London.

A car dealer from Kent – who is now living in Spain – has been banned from being a company director for 12 years after his company received a second £45,000 Covid Bounce Back loan it was not entitled to.

Joseph Harrison, from Wrotham, was the director of South East Commercials Ltd – a used car sales dealership in Kent – before it was dissolved in January this year.

An Insolvency Service investigation found that the 38-year-old applied for a Covid loan of £45,000 in June 2020.

However, he applied for a second loan – in August 2020 – for a further £45,000 having declared this was his first and only application for his business.

At a hearing at the High Court in London on 15 April 2025 Harrison was disqualified from being a director for 12 years, with his ban beginning on 6 May 2025.

He was also ordered to repay the current balance of £38,295 from the second loan.

Ann Oliver, Chief Investigator at the Insolvency Service, said:

Joseph Harrison applied for and received a second Covid loan when he was only entitled to one for his car sales business.

A 12-year ban is a significant disqualification and demonstrates the seriousness of his actions.

The Insolvency Service is committed to ensuring those who abused this scheme – which was designed to benefit the economy and help small businesses – are brought to justice.

Joseph Harrison operated as a sole trader for a number of years before South East Commercials Ltd was incorporated in May 2020.

The company sold used cars and light motor vehicles, such as motorcycles.

In the report to creditors, Mr Harrison stated that the first Bounce Back loan application was made by a third party on his behalf.

The Insolvency Service did not find evidence of a third party’s involvement.

He also stated that he did not know that only one successful loan application was permitted under the scheme.

However, the Insolvency Service has seen evidence that Mr Harrison signed the declaration on his company’s second loan application confirming that this was his first and only application.

Joseph Harrison was disqualified for 12 years under sections 6 and 15A of the Company Directors Disqualification Act 1986.

The Bounce Back loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000, at a low interest rate, guaranteed by the Government.

Further information:

South East Commercials Ltd (https://find-and-update.company-information.service.gov.uk/company/12606328/officers) (company number 12606328) was incorporated in May 2020 and dissolved in January 2025.

Joseph Harrison date of birth: 25 April 1987. He gave his address as Workshop Cottages, Wrotham, Kent but stated that he is currently living in Spain.

He was disqualified for 12 years under sections 6 and 15A of the Company Directors Disqualification Act 1986 at a hearing at the High Court in London on 15 April 2025.

Read more about the Bounce Back Loan Scheme and the action the Insolvency Service can take if it finds misconduct. (https://www.gov.uk/government/publications/fact-sheet-bounce-back-loans/fact-sheet-bounce-back-loans#if-we-find-misconduct)

The Insolvency Service can investigate complaints about corporate abuse by live companies. This may include serious misconduct, fraud, scams or dishonest practice in the way the company operates. Further information on our live investigations can be found here (https://www.gov.uk/government/publications/the-insolvency-service-company-investigations-what-we-do/company-investigations-what-we-do)

Further information about the work of the Insolvency Service, and how to complain about financial misconduct. (https://www.gov.uk/government/organisations/insolvency-service)