Accounts Question

[runningmummy]

Started childminding on 3rd March 2011, my husband gave me a loan of £800 to buy some shelves, toys and other start up items - i need to repay this money over time-how do I show this repayment in my Accounts. Any help would be appreciated.

[christine e]

Have you entered the loan in your accounts as income?

Cx

[MrAnchovy]

The only thing that appears in your accounts is the expenses for the items (assuming they are all allowable expenses, or claimed as Annual Investment Allowance as appropriate).

Neither the receipt of the money from your husband nor the repayment of it should appear in the calculation of profits you send to HMRC.

[runningmummy]

All of the items were bought prior to April 2011 and I now have to do a tax return for the month of March - April. If I show them as Expenses in this set of accounts which will show a huge loss, how can I take the money out of my business in the upcoming months?

[Chatterbox Childcare]

A loss is fine - you do not show the loan just the expenses

[MrAnchovy]

As a self-employed person, there is no distinction between you and 'the business' so you can take cash out of the business bank account whether you have made a profit or not - you don't even have to have a business bank account (although the terms and conditions of a personal bank account usually say you can't use it for business).