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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5015
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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This is a UK accounts question. We started a small business

Customer Question

This is a UK accounts question. We started a small business hiring out bikes and kayaks. In order to buy the equipment we got a personal loan of £5000 which we then put into our business account when we opened it. The loan repayments come out of our personal account and if we make occasional drawings to cover the repayments and also a credit card payment for public liability insurance. As it shows as a £5000 credit on our business account is it classed as income and how do we note it on the tax return. The credit card payment - we have a receipt for- but it doesn't show up on our business account either...
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

Monies introduced into the business through a personal loan is not income, it is capital and you don't have to report it as income when preparing your accounts. Also, there is no need to make a note of it on your tax return.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.


Hi that's great...I have a couple of other questions - how do I go about payment or do I just resubmit as new questions?

Expert:  taxadvisor.uk replied 3 years ago.
Thank you for your reply.

You should put new questions as per Just Answer rules.
I will be happy to help you. If you wish me to answer them then please request for me in your question.

If you are happy and there are no more issues relating to your original question, I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.