where do i include my loan?

ELIZA_D

At the beginning of opening up my clinic i had a 5 grand loan from a family member.Where do i include this on my tax return? Is it part of my turnover? I usually only need to do a short tax return as my income is not over 15 grand.This time it is so i have to do the longer one....(profit not greaT though) I hope i dont sound too thick but i still have trouble with turnover,gross profit,net profit etc etc

whatatwit

When I last had a business loan, you could only claim the interest that is paid on a loan, not the capital repayment.

So, if it is interest free, then no entry.

As far as I know, this has not changed.

ELIZA_D

i might be more confused now!
so i have to show i had a 5 grand loan somewhere ?

whatatwit

Are you paying interest or just paying it back as £5000.

ELIZA_D

just going to pay it back as 5 grand....although i have not started to yet.this year for sure!

jennifernil

A loan is not income so is not taxable. So do not show it anywhere.

WHA

jennifernil wrote:

A loan is not income so is not taxable. So do not show it anywhere.

Probably best to make a note of it on your tax return in the "additional information" box. That way, if the tax return is picked out by an inspector to look at, he'll have a better understanding of your business - otherwise it may appear you are running at a loss or that the business profits weren't enough to support your lifestyle or the business expansion etc. By telling them this information you could well avoid a formal enquiry.