I feel a headache brewing!

[Becky_simon]

The loan - I think you are going to have to show that you have recieved 2 lots of income, firstly the loan, then the 'loan' from your husband, then 1 expense which is the payment of loan.

It will show that you now owe your husband the amount instead of the loan company.

Income A = Original loan Amount
Income B = Amount your husband paid towards it (which in essence has been paid to your business as another loan for the purpose of paying off the original loan)

Expense A = All loan repayments

Although the original loan has been cleared by your husband, for the purposes of accounts your business still owes that money, so instead of owing the loan company it owes your husband.

Does that make any sense at all lol I can see it clearly in my head how it should look on paper but can't put it into words very well! :irked:

Really! Yes that does make sense what you said *THREE CHEERS PLEASE EVERYONE.
However I had no idea I will be classed now as owing the money to my husband. The whole point of him paying it was so I didn't have to worry about a monthly cost each month when I was earning so little. So he cleared it completely for me. So I was under the impression that its all paid and thats the end of it.
AAAA technically my husbands money is from our joint personal account so technically ive paid for it too lol so does that mean I owe myself lol HELP!!

 

[pure]

Yup you owe yourself money lol

I doubt there is any reason why the business has to reimburse you/your husband, it could stay on your accounts as an on-going debt.

So when you do your self assesment you can show it as an outstanding business debt.

 

[Becky_simon]

Yup you owe yourself money lol

I doubt there is any reason why the business has to reimburse you/your husband, it could stay on your accounts as an on-going debt.

So when you do your self assesment you can show it as an outstanding business debt.

Yeah but that completely sucks I don't want it as a debt...it will be there forever!!

 

[pure]

Alternatively ........ as you are a sole trader and it was your joint money that paid off the loan then you can just show the repayments as a normal expence and the loan cleared.

For example, I don't have a seperate business account, so anything I buy for my business comes out of my personal account anyway and just shows on the books as a business expense.

In fact that might the easiest way of you dealing with it. Show the loan as an income, and then the payments as an expense. It will then be taken into account for your personal assessment towards your tax allowance.

 

[Steph86]

I've PM'd u hun, xx

 

[Becky_simon]

Alternatively ........ as you are a sole trader and it was your joint money that paid off the loan then you can just show the repayments as a normal expence and the loan cleared.

For example, I don't have a seperate business account, so anything I buy for my business comes out of my personal account anyway and just shows on the books as a business expense.

In fact that might the easiest way of you dealing with it. Show the loan as an income, and then the payments as an expense. It will then be taken into account for your personal assessment towards your tax allowance.

Thanks for that alternative view. It really is getting quite complexed now but I shall have a think and see which way to go about it

 

[Becky_simon]

I've PM'd u hun, xx

Iv'e pm'd you back :lol:

 

[cherrybaby]

Becky, I honestly think you need to speak to either an accountant or HMRC. Their workshops for newly self employed and Business Expenses and Capital Allowances would really help you. Just for information, someone said you would put equipment down as an expense eg. Your UV Lamp. That's not actually true, this would count as a capital allowance. This really is an area where you need the advice of an expert in the field of self assessment completion/accounts.

 

[Becky_simon]

If I do miss something off, am I able to add it next year? Or is it now or never?

 

[cherrybaby]

The assessment is an accurate picture of what has happened in the year in question. Seriously, speak to HMRC. All the questions you have asked on various posts could be answered in a telephone conversation with one of their tax experts.