- Original Poster
- #1
I know I should know this already but could do with some advice. I have a main occupation but set up part time as a sole trader dealing in antiques. It started organically buying one piece, making a profit and went from there. I registered for tax within three months but had to invest my own money to buy stock. I don't have a business overdraft. I sell through an antiques centre and pay rent each month.
If all of my money is tied up in stock I sometimes have to use my own money to buy a piece that is too good to miss say, £300, and when cash comes in from a sale, repay that money. Is this a director's loan and is this ok? I don't take any drawings and invest everything back into the business.
Sometimes, if I buy something using my own money, say stationery or materials for restoration, I don't always take the money out of the business. As I am trying to build up, I don't want to keep taking out. I only turned over around 10k last year - this is a fledgling part time business- but margins can be tight so I want to build this up over a couple of years before I take anything out but I can't afford to fund it all the time in terms of buying bigger pieces of stock.
It may be ad hoc the way I take money back that I have paid out of my own - say paid £300, take £200 back when cash comes in, and leave £100 owing but keep a full receipted list.
Am I doing anything wrong with this? I'm sorry if this sounds stupid and basic but I could do with some advice
Thanks
If all of my money is tied up in stock I sometimes have to use my own money to buy a piece that is too good to miss say, £300, and when cash comes in from a sale, repay that money. Is this a director's loan and is this ok? I don't take any drawings and invest everything back into the business.
Sometimes, if I buy something using my own money, say stationery or materials for restoration, I don't always take the money out of the business. As I am trying to build up, I don't want to keep taking out. I only turned over around 10k last year - this is a fledgling part time business- but margins can be tight so I want to build this up over a couple of years before I take anything out but I can't afford to fund it all the time in terms of buying bigger pieces of stock.
It may be ad hoc the way I take money back that I have paid out of my own - say paid £300, take £200 back when cash comes in, and leave £100 owing but keep a full receipted list.
Am I doing anything wrong with this? I'm sorry if this sounds stupid and basic but I could do with some advice
Thanks
