Directors Loan Account

[Want2startup]

I have seen this mentioned in another thread and would like to know more about it.

If I started a business as a sole trader with my own "Saved" up money.

How would I go about it please? - I mean in a very new to business way.

 

[MyAccountantOnline]

I have seen this mentioned in another thread and would like to know more about it.

If I started a business as a sole trader with my own "Saved" up money.

How would I go about it please? - I mean in a very new to business way.

A directors loan account wouldnt apply to you as a sole trader (its only relevant for a limited company)

As a sole trader if you put your own funds into the business its called capital introduced - it has no effect on the tax you pay.

 

[MyAccountantOnline]

If you do want to read up on directors loans here's some info.

 

[Want2startup]

Thank you MAO.

How would the money that I "Lend" to start my company as a sole trader, be done officially.

I have absolutely no experience in anything business related, sorry - and would appreciate "in depth" replies.

 

[MyAccountantOnline]

Thank you MAO.

How would the money that I "Lend" to start my company as a sole trader, be done officially.

I have absolutely no experience in anything business related, sorry - and would appreciate "in depth" replies.

As a soletrader you and the 'company'/business are the same thing so it's just simply called 'capital introduced'.

You record it as that in your records/books so that it doesn't get taxed. It has no effect on tax at all.

 

[GraemeL]

As a sole trader, all monies are yours. There is in effect no difference between your personal money and business money. Having said that, I would recommend you set up a new bank account for your business.

G