Directors loan sole trader equivalent

[scribblesvurt]

If you are a sole trader and you put say 5k into the business to start up, how would you handle that tax / book keeping wise?

 

[elaine@cheapaccounting]

debit bank
credit capital introduced

 

[scribblesvurt]

So would you not have to pay tax on this. So you could just draw out a tenth of it every month over ten months?

 

[elaine@cheapaccounting]

So would you not have to pay tax on this. So you could just draw out a tenth of it every month over ten months?

No tax to pay on capital introduced and you repay it when you like assuming you have a separate business account - if you don't then it is already on your own account. So nought to repay!