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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My problems: 1) I am self employed and last year

Resolved Question:

Hi ,
My problems:
1)
I am self employed and last year (2014-2015)my total eanings /year was around 12800 (from my work as a driver ) but because i wanted to go in holiday and to pay my loan and bills ,(my business was very bad last year )i had a helping hand from one of my relatives who helped me with 5000 (8-9 cash payments) and to give them back whenever i can without interest .
Now i realized that my income has gone up to 17800(becuse i needed to pay cash into my account )....so my question is : Do i really need to count this 5000 as income or what other option do i have to try to stay out of this trouble ...
2)sold my old computer on ebay (£700) is it income or not ? what other option do ihave that this sum not to be counted as income ....
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Just to be clear, the £5000 is a loan and will need repaying?
Customer: replied 2 years ago.

yes need to be repaid but not strictly in time (i mean not really forced my installments period of time) whenever i can this year ,next year no problem ,interest free...

Thank you

Expert:  Ash replied 2 years ago.
Sure. In that case it can be treated as a loan and you don't need to declare the £5000. I would not put it into your business account though,
As for selling it on Ebay, no you dont need to declare this. This would be a capital gain or loss and you are entitled to make around £11,000 tax free gains per year. But if you sold a computer previous brought it is likely to be a loss anyway,
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

Ok Alex

last question :

Im not gonna declare this 5000 but how can i prove HMRC that this was a personal loan (just in case if they gonna ask me... ) they gonna believe me or do i need to have any document or receipt wich atest that i borrowed the money so i can posibbly be believed ...(was cash as i told you !)

Thank you very much

Expert:  Ash replied 2 years ago.
I assume the person giving to you would confirm it was a loan? That is enough. Friends loan friends all the time
Alex
Customer: replied 2 years ago.

Thanks Alex ,

Satisfied ,even if is unclear regarding the fact that my friend doesnt speak english and is outside country ,i dont know how can be treated as trustable ...

Anyway thanks

Expert:  Ash replied 2 years ago.
Yes. HMRC would need to show it was NOT a loan and income.
If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Customer: replied 2 years ago.

So.. do i really need to make a document with my friend showing that was a personal loan ?

Thank you

Expert:  Ash replied 2 years ago.
No. That would be ideal, but not necessary. People lend money to others all the time without evidence.
Alex
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex