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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13865
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If i invest money into my business where do i show this on

Resolved Question:

HI Sam,
if i invest money into my business where do i show this on an SA100 form
Submitted: 12 months ago.
Category: Tax
Expert:  Sam replied 12 months ago.

Hi

Thanks for your question and for asking for me

You do not sow this on the tax return - this will remin as just showing within your business accounts so that this injection of capital can be seen as just this and not as profits made

Thanks

Sam

Expert:  Sam replied 12 months ago.

Hi

Can you advsie

1) how much you took from your pension and how much did this represent (25% or more) and how old you are

2) What tax was deducted from the lump sum

Thanks

Sam

Customer: replied 12 months ago.
Hi Sam,
I am self employed and sadly had to go down the TAx credit route until things picked up, I had my tax free allowance years ago out of my pension, but last year i had to take some additional out for the business, it was £23785 after tax. It went into the business, so i put this on my tax return. But then the tax credits were stopped, i assume because it was considered as income,
Even though it was used in the business, tax credits our our lifeline at the moment until things pick up a bit.
Expert:  Sam replied 12 months ago.

Hi

Thanks for your question

I am afraid this is getting far more involved than your original question suggested and what went from a simple question about injecting capital into a business now has pension cogitations and now tax credits.

I will answer the original question based on the fact you down drew from a pension which makes this liable to income tax - so of the £23785 you took out - this should have had tax deducted from it £4757 and this is entered onto the main return (as you advsie you are completing SA100 this is clearly a paper tax return) so fill this in at item 11 (gross payment)and 12 (tax deducted) on page TR3 and as for the tax credits (which I will dal with as this does seem to be your first time on Just Answer)

It will be treated as income for the year - the fact you choose to inject it into the business does not alter the fact that both HMRC and Tax credits will treat this as income for the year so a recalculation would arise - however you can then advsie the tax credit office of the revised figure of income that you will have this year (which will be excluding the down draw of pension) thereby reintroducing a valid tax credit claim, but you may have to pay back all or some of last years award, which they can collect a little from each 4 weekly payment made this year.

Let me know if I can assist furtehr, but it would be appreciated if you could rate me for the level of service I have supplied (or click accept)

Thanks

Sam

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