Help with Self Assessment and loan!

[stephanie_87]

Oh my word I need help before my head explodes. I received a small loan from my Father when I started my business and I have no idea where to fill this amount in on my Self Assessment. Or do I even need to? So confused. Thanks Geeks x

 

[laurakate]

I'm not sure what the official answer is but I would hope that anything from a parent or close family member would be considered as a gift (like some cash in a birthday card) rather than something you should be taxed on as income.

If in doubt I would be tempted to get an accountant.

 

[Steph86]

When you say loan, you mean you are paying him back? Do you have all of the receipts for things he/you has paid for?

I did this, (hopefully the right way) First of all I paid my mum back out of my employed wages.

Kept all of the receipts & added it all up for my self assessment (plus fuel, extras like uniform more products etc) & put that as my expenses. It was calculated as 'loss' on my self assessment. As my outgoings were more than my earnings.

I didn't mention that the money came from my mum-as it did initially but I paid her back out of my own pocket.

Does that make any sense?

Xx

 

[Daisy Digits]

I have to say that I tied myself into several knots before biting the bullet and ringing HMRC office. They were really helpful and didn't laugh when I asked the most basic of questions. It's a bit of a beggar isn't it! Hope you soon get it sorted.

 

[Salon Tax]

Provided that you haven't paid interest to your dad on this loan, you will not need to declare anything on your tax return

Helen (Salon tax)

 

[EmJ]

I've done this, I have an accountant so don't do it myself but I just added an extra column called loan repayment as I paid back every month and it went against my expenses

 

[Salon Tax]

Ladies,

You need to be v careful here! If you pay interest on a loan then you can deduct that as a business expense against your turnover. However, repayments of the money that you were lent to set up your business is a v different story.

If anyone wants any advice, please message me. I'm a qualified tax advisor (running a firm specialising in advice for the beauty industry)

Helen x

 

[BotoxNurse]

Best advice I was ever given was visit 3 local accountants and pick 1 I felt most comfortable with. He spent ages going through everything with me for free and then sent me an excel spreadsheet which I fill in every week, and he sorts EVERYTHING out. Best money ever spent. Even better than the Jimmy Choos and that was good money ;0)