I am self employed and owed money

ajo

Hello

I am now regestered self employed. I am keeping a record of all my earnings which are paid straight into my account.

I am also owed some money from a friend which I will be getting soon. It is a large amount and I dont want it to be counted as earnings is it was already my money which is now just coming back to me.

Do they keep an eye on your back account to see if any large amounts go in as I dont want to get taxed on it.

Thanks

ajo

intel

Get a cheque made out to a wife or partner....

Or open a second bank account for such events...

Just a thought...

Deemy

ajo wrote:

Hello

I am now regestered self employed. I am keeping a record of all my earnings which are paid straight into my account.

I am also owed some money from a friend which I will be getting soon. It is a large amount and I dont want it to be counted as earnings is it was already my money which is now just coming back to me.

Do they keep an eye on your back account to see if any large amounts go in as I dont want to get taxed on it.

Thanks

ajo

If its a repayment of monies loaned then it would NOT be counted as taxable income... though any interest earned would. YOu would not normally have to declare the money on your tax return.

ajo

Thats good, I was worried that it might seem strange to them that a large amount suddenly gets paid in, and then some of it goes into my ISA.

Deemy

ajo wrote:

Thats good, I was worried that it might seem strange to them that a large amount suddenly gets paid in, and then some of it goes into my ISA.

Just make sure that you retain records that show the money originally going from you to him, just in case they ask.. i.e. a cheque transaction on your bank statement, if it was by cash some sort of written loan agreement.

Epiphone

Get a seperate bank account, it makes things so much easier.