Money gifted for business query!

[S_E_H]

Hi all, no idea if this question has been asked before cause its a hard one to search for but basically my mum has gifted me a bit of money towards buying more stock for my business - I am only talking £100, so nothing major. But just wondered when it comes to filing my tax return next year how do I declare this as I've not received this money from a client for carrying out a service....?!

Sorry if I have not explained it very well but hoping someone will know and be able to advise me as I log all my income and outgoings but not sure how to state this!

Thanks

 

[attitude]

It isn't income.

 

[S_E_H]

So what is it classed as then and do I need to record it? Thanks

 

[PamieD]

It comes under capital introduced (assuming you are a sole trader) but if you've already bought the products then I honestly wouldn't bother for such a tiny amount. It's not going to affect the tax you pay.

 

[S_E_H]

Many thanks, yes I am a sole trader. I was more thinking how do I state the expenses using money that isn't from income? Oh I'm getting all confused lol

 

[Trinity]

So your Mum bought some stock for you? I wouldn't put it on my tax return, you didn't spend it, you didn't buy it with company funds. It will be used by the business but as Pammie says it's such a small amount it wont make any difference to your tax bill. If it was thousands you'd be in a different position and it would need to be declared.

 

[S_E_H]

Yes I guess technically she did although I made the purchase, she just gave me the money for it! Ok, great, that helps a lot!

 

[CFBS]

Don't bother putting it in your accounts- such a small sum.
No doubt your mum gets some freebie treatments anyway - so in a sense you have paid it back!

 

[hazelb]

You should be use to sections for outgoings, (business expenses, ) and money coming in ( takings ).

Where profit is 'takings minus business expenses'. This is what goes on your tax return and it's what you pay tax on.

The money your mum has given you doesn't affect this. The actual money you have at the end of the year in your bank account will be profit ( you worked out above) minus 'drawings' (any money you've taken for yourself) plus any money you've paid into the business ( that's your mums money )

It won't affect your tax, but that's how you show it in your accounts.