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  Fenland Fencing January 1, 2012 at 1:47pm

  Are you a sole trader or a limited Company?
• 

  Anthony Toop January 1, 2012 at 2:16pm

  Sole trader
  
  Fenland Fencing said:

  Are you a sole trader or a limited Company?
• 

  Anthony Toop January 1, 2012 at 2:21pm

  I understand what you mean but if i lend the money to the business(personal savings, nothing to do with the business) then i want it back!

  if i was paying with money from within the business then, yes i cant have both, its money or van

  But if the money is mine(from savings) then just as if i had a business loan, i would pay the money back and have the van!
  
  John www.acegardenservices.co.uk said:

  Hi Antony,

    I am not sure why you want to pay yourself back the money you are introducing to

  the business, you are using it to buy a van, and that is your gain. You can't have the

    van and the money, and the cost will be offset against tax for the relevant tax year.

  I think 100% can be offset in the same year(but I always leave these details to my accountant so not 100% sure)

  The money you introduce into the business will not be taxed again,

  you have already paid tax on this -  just add it as introduced money.

  I am sure others on here will be more able to give you a detailed explanation.

   - It is always worth considering getting an accountant ?
• 

  Andy Thorne January 1, 2012 at 2:50pm

  If you're a sole trader all the money in business account is yours anyway.  You are liable to pay tax on your profits/drawings.  (difference between income and tax deductable expenditure)

  If you pay 5k towards van you just take that back out again.  I'm not certain what the taxation status is of interest added.  I guess it would be negligible in this case anyway so I'd just re-imburse yourself the 5k and leave it at that.

  If you're a ltd co it's put down as a directors loan into co. and a repayment out.

  This is as I understand it having done similar myself numerous time in both ST and Ltd status.
• PRO

  Nick @ NM Garden Services Ltd January 1, 2012 at 3:07pm

  
  exactly right - you beat me to it!
  Andy Thorne said:

  If you're a sole trader all the money in business account is yours anyway.  You are liable to pay tax on your profits/drawings.  (difference between income and tax deductable expenditure)

  If you pay 5k towards van you just take that back out again.  I'm not certain what the taxation status is of interest added.  I guess it would be negligible in this case anyway so I'd just re-imburse yourself the 5k and leave it at that.

  If you're a ltd co it's put down as a directors loan into co. and a repayment out.

  This is as I understand it having done similar myself numerous time in both ST and Ltd status.
• PRO

  Gary RK January 1, 2012 at 3:22pm

  Would agree as a ST, your business and yourself are effectively one entity as your are taxed accordingly on your profits. I believe its treated as Capital Introduced by Owner.....

  However you should always verify any such guidance with an Accountant to ensure you make best use of the tax laws.

  As stated elsewhere, a good accountant is worth a number of good clients to a business, especially if he is 'small business' minded.
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  Anthony Toop January 1, 2012 at 3:37pm

  Ok guys, thanks for the input, i assumed it was the case that capital could be put in and taken out with no tax implications but wanted a second opinion, cheers

  I will definately this year find an accountant i can use for questions/info, as regards the tax return im more than happy to do this online myself for now, that may well change as and when i become an employer however!
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  Anthony Toop January 2, 2012 at 10:36am

  No problemo, i appreciate your input/advice ;-)

  anyone heard of or read anything from these guys http://www.taxcafe.co.uk/small-business-tax-tactics.html

  looks to be quite informative?
  
  John www.acegardenservices.co.uk said:

  I am not saying this to have an arguement, because I too struggle at times

  to understand these matters. 
• 

  Tim Wettone January 3, 2012 at 5:33pm

  Hello Andrew

  Speaking as an accountant in general practice, I can confirm that you can put your savings in, and take them out, without causing any taxable issues at all.  As others have indicated, you are taxed on the profit you generate from doing business with other people, but not yourself, so the introduction of funds is not income and the withdrawal of those same funds at a later stage is not a tax deductible expense.

  As regards the cost of the van, provided the cost falls within the limit of annual investment allowances (currently £100,000 but going down to £25,000 as from 6 April 2012), you can claim 100% of the cost of the van against your profit.
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  Anthony Toop January 3, 2012 at 10:06pm

  Thanks for confirming that for me Tim, much appreciated
  
  Tim Wettone said:

  Hello Andrew

  Speaking as an accountant in general practice, I can confirm that you can put your savings in, and take them out, without causing any taxable issues at all.  As others have indicated, you are taxed on the profit you generate from doing business with other people, but not yourself, so the introduction of funds is not income and the withdrawal of those same funds at a later stage is not a tax deductible expense.

  As regards the cost of the van, provided the cost falls within the limit of annual investment allowances (currently £100,000 but going down to £25,000 as from 6 April 2012), you can claim 100% of the cost of the van against your profit.