Capital Investment and expenses

Discussion in 'Accounts & Finance' started by NFSH_79, Jan 14, 2021.

  1. NFSH_79

    NFSH_79 UKBF Newcomer Free Member

    4 0
    Good morning,

    Probably obv. and simple but will ask and feel free to shoot me down - I can take it :)

    Sole trader - selling products through marketplace platforms and some gardening is basis of business income. Currently not getting any revenue due to time of year and mainly currently isolating.

    Nothing owed to suppliers but not sitting on much monies but in need of ordering some new stock in ready for sales once I can commence again.

    The stock will be a reasonable sized purchase - am I correct in that I can make a capital investment of personal monies into business account which I can then use to cover the cost of the stock once the invoice comes in?

    Capital investment to be paid back once monies available to do so, whether that be this financial year or next?

    TIA Nick
    Posted: Jan 14, 2021 By: NFSH_79 Member since: Jun 4, 2020
  2. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,349 2,508
    Yes you can.

    When you pay the money in it'll be capital introduced and when you take it back it'll be drawings.

    Its worth keeping a record of where the funds come from in case HMRC ask.
    Posted: Jan 14, 2021 By: MyAccountantOnline Member since: Sep 24, 2008
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,770 3,561
    There is absolutely no problem doing that. As you are a sole trader you are only moving your own money around.
    Posted: Jan 14, 2021 By: Scalloway Member since: Jun 6, 2010