Personal money introduced to business tax return?

munchkinz

Help this is my first year submitting a tax return.

We bought the business in Feb 2011 for £1500 and a van for £3500 This money was borrowed from my dad. During the year we have also introduced a further £1258 of our own money.

Where does this go on the tax return?

So confused :eek:

Elaine_Wilson

The full self employment supplement has a box in the capital account section of the balance sheet marked "capital introduced".

If you use the short form or do not bother with the balance sheet figures then you do not actually show this. The cost of the van, though, would be eligible for capital allowances so an entry in that section will be appropriate.

munchkinz

So your sayng if I use the short form which I am I do not have to declare this?

So I would put

Income
Expenses
Then Annual Investment Allowance as the cost of the truck and other equipment.

I suppose this makes sense as it's our money and not an actual income.

What about the cost of buying the business in the first place (£1500)? Does that have to go anywhere?


Could someone please just clarify this please? I'm sorry for all the questions but they don't make it easy

I did try phoning the helpline but got passed from pillar to post then told they couldn't speak to me without my husband writting to them first. (it's his return)

ceeforcat

Depends what you 'bought' with the £1500. If it was goodwill then the same applies, it does not go anywhere on the short form. If it was for equipment and it qualified for Capital Allowances this would be claimed in the same way as the van.