Loan repayments and self assessment

creditcrazy

Hi all,Im new to this forum and have been reading a lot of threads today but cant seem to find an answer to my silly question!!I have recentley became self employed and my mother has given me a loan to cover start up costs so what happens as I repay her it back from money I hopefully earn!! Can I deduct this from any profit? there will be no paperwork as such to back up that I am paying her this every month,should I ask her to issue me with a receipt of some kind??I just dont want to mess up my book keeping before I even begin!! I have receipts and a note of exactly what it was spent on. Hope that makes sense and any help would be appreciated.Thankyou

BoGoF

Short answer - no, but if you're paying interest you can claim that.

What did you buy with the money, if it was equipment then you will be claiming capital allowances on that.

creditcrazy

Thanks for the quick reply,yes it was for equipment I need to be able to do my job.

ceeforcat

And, if you did pay interest, your mum would have to declare it!