Me lending money to "sole trader" business

[Deleted member 47229]

Assuming I start a sole trader company
Assuming I get a business bank account in said name
To get going I will have trivial expenses which would be better off coming out of business account to ensure everything is under this umbrella. But the first cheque won't be in for maybe 45 days after.

So can I simply pay in £xxx of my personal cash into this account as an interest free loan and take it back once the cheque clears?

I am assuming this is an obvious yes as the company as a sole trader is in fact me - but wondering if this has any implications I've not seen.

Cheers.

 

[DVWooly]

sole traders are very simple to operate.

it just goes into the partners capital account

when you take out salary it will be classed as drawings, out of this capital account

the profit/loss will also be allocated to the partners capital account as well.

i keep saying using an excel spreadsheet is the easiest way to keep your books but nobody will beleive me for some reason.

They think they need a trial balance generated from some sort of accounting system

ludicrous if your business is relatively straightforward.

You can even send them a set of accoutns that has been generatded through the spreadsheet and say ........ "check this for £100 and let me know of any adjustments"

It will take them a couple of hours to check.

 

[elaine@cheapaccounting]

sole traders are very simple to operate.

it just goes into the partners capital account

when you take out salary it will be classed as drawings, out of this capital account

the profit/loss will also be allocated to the partners capital account as well.

i keep saying using an excel spreadsheet is the easiest way to keep your books but nobody will beleive me for some reason.

They think they need a trial balance generated from some sort of accounting system

ludicrous if your business is relatively straightforward.

You can even send them a set of accoutns that has been generatded through the spreadsheet and say ........ "check this for £100 and let me know of any adjustments"

It will take them a couple of hours to check.

it is a sole trader - so there are no partners

 

[elaine@cheapaccounting]

Assuming I start a sole trader company
Assuming I get a business bank account in said name
To get going I will have trivial expenses which would be better off coming out of business account to ensure everything is under this umbrella. But the first cheque won't be in for maybe 45 days after.

So can I simply pay in £xxx of my personal cash into this account as an interest free loan and take it back once the cheque clears?

I am assuming this is an obvious yes as the company as a sole trader is in fact me - but wondering if this has any implications I've not seen.

Cheers.

easiest way is to record a capital introduced and repay as / when you want. No tax implications.

Can I suggest the free one day course run by HMRC on how to complete the self assessment for self employed

details here and scroll to self employed:

http://www.hmrc.gov.uk/bst/work.htm

 

[Deleted member 47229]

Thanks Elaine - looks interesting! Bookmarked for later.

 

[DVWooly]

capital account / partners capital account ....... pedantic accountants!

 

[elaine@cheapaccounting]

capital account / partners capital account ....... pedantic accountants!

Pot and Kettle spring to mind

 

[dp0848]

capital account / partners capital account ....... pedantic accountants!

Not padantic, just accurate. Attention to detail is important.

 

[DVWooly]

elainec100

just had a look at your site ............ looks good

very interesting how you can enter the transactions online and then generate the reports

 

[elaine@cheapaccounting]

Not padantic, just accurate. Attention to detail is important.

Just to be PEDANTIC do you have a spell checker

 

[elaine@cheapaccounting]

elainec100

just had a look at your site ............ looks good

very interesting how you can enter the transactions online and then generate the reports

yes so much better than excel I find

 

[dp0848]

Just to be PEDANTIC do you have a spell checker

That's the last time I stick up for you Clarke.

 

[Jenni384]

Just to be PEDANTIC do you have a spell checker

He is terrible
I might have to dock his bonus this month...

 

[Jenni384]

That's the last time I stick up for you Clarke.

I'm pretty sure its 'Clark'

 

[elaine@cheapaccounting]

That's the last time I stick up for you Clarke.

it is Clark (no 'e') and Clarky to my friends.

You may call me Ms Clark or 'gov'

 

[dp0848]

it is Clark (no 'e') and Clarky to my friends.

You may call me Ms Clark or 'gov'

I can think of lots of things to call you - Clarky and Gov were not on the list though.

 

[BusinessIdeas]

Account ants! - don't ya just luv em?

 

[dp0848]

I'm pretty sure its 'Clark'

Get on with your work ..... and it is "it's" not "its"

 

[Jenni384]

Account ants! - don't ya just luv em?

Yes we are all adorable

 

[elaine@cheapaccounting]

I can think of lots of things to call you - Clarky and Gov were not on the list though.

oh just stop with those sweet nothings again

 

[elaine@cheapaccounting]

Account ants! - don't ya just luv em?

hey this is the only fun we get

 

[dp0848]

oh just stop with those sweet nothings again

In your dreams.

 

[David Griffiths]

Just to be PEDANTIC do you have a spell checker

Yes, but she was obviously busy at the time!

 

[elaine@cheapaccounting]

In your dreams.

you left out the word worst from that sentence

 

[elaine@cheapaccounting]

Yes, but she was obviously busy at the time!

Hi David

How are you

 

[DuaneJackson]

Should've guess all the accountants would be in on this thread stirring up trouble. You can't take your eye of them for more than a minute.

Get back to accountingweb where you belong, the lot of ya!

 

[Jenni384]

Should've guess all the accountants would be in on this thread stirring up trouble. You can't take your eye of them for more than a minute.

Get back to accountingweb where you belong, the lof of ya!

Spellchecker, Duane?

 

[DuaneJackson]

Spellchecker, Duane?

who needs a spellcheque wen ewe have an edit buton? : )

 

[dp0848]

Duane is throwing his toys out of his pram because after years of effort developing KashFlow he has just realised that Excel is by far the best accounting tool when in the hands of Mr Wooly.

 

[Deleted member 47229]

Erm - as thread starter - hope I'm not being billed for the time spent on the thread?

 

[David Griffiths]

Hi David

How are you

Not sure that you really want to know, but harassed sums it up! We just changed the office server, which caused more disruption that I expected, and now we've been without emails coming in all day. Add to that a couple of tasks which suddenly become urgent, and might mean an unexpected trip to London tomorrow. Still it will be worth it.

All part of life's rich pageant!

 

[Jenni384]

Erm - as thread starter - hope I'm not being billed for the time spent on the thread?

We won't bill you. But watch out for Elaine, she has a reputation!

 

[elaine@cheapaccounting]

Not sure that you really want to know, but harassed sums it up! We just changed the office server, which caused more disruption that I expected, and now we've been without emails coming in all day. Add to that a couple of tasks which suddenly become urgent, and might mean an unexpected trip to London tomorrow. Still it will be worth it.

All part of life's rich pageant!

that's computers for you

You don't need a server though to run excel which does it all you know

 

[elaine@cheapaccounting]

We won't bill you. But watch out for Elaine, she has a reputation!

For what If only

 

[DuaneJackson]

You don't need a server though to run excel which does it all you know

Yeah, we use excel to design websites too. And it's also really great for getting out those stubborn stains.

 

[elaine@cheapaccounting]

only if only I could find a boyfriend as perfect as excel

 

[Alpha]

Now correct me if I'm wrong but isn't this a business forum.

Timeout posting is down below

I should report the lot of you!!

 

[Jenni384]

only if only I could find a boyfriend as perfect as excel

Stop it! I nearly spat out my tea!

 

[elaine@cheapaccounting]

Now correct me if I'm wrong but isn't this a business forum.

Timeout posting is down below

I should report the lot of you!!

oh no it is scary Alpha again

 

[dp0848]

only if only I could find a boyfriend as perfect as excel

Sorry, I'm taken.