Saving into business are they taxed when I pull it out?

flashgordon666

Try an make this as simple as possible.

1. In 2015 I took out £6k from my ISA and put it into my business to buy stock.
I have now £6k in cash, because I took out £6k in 2015 to put into my business technically loaning it to myself.
If I put the £6k cash into the bank can I put that straight into my personal account tax free?

2. I borrowed money off my mum £4k to buy stock this was a loan, can I pay that straight back without paying tax as its a loan.

regards

CKhalvashi

If it was an investment into the business, then will be taxable (although won't be liable for capital gains tax when selling)

If it was a loan to the business, then it can be withdrawn tax-free, as it's exactly that; a loan.

I've included both descriptions, as I'm not sure which one you actually mean.

Nearlyold

Is the business a limited company of which you are a director or are you a sole trader?

flashgordon666

Hi, thanks for you help
sole trader.

so your saying I can pay my mum straight back tax free as it was a loan, is this any amount of has it got to be under a certain amount.

but because I invested the money from personal savings I have to pay myself back minus tax

the business is a toy business selling in shop

Nearlyold

In simple terms as a sole trader you are not taxed on money taken out of your business or put into your business, you are taxed on the profit your business makes.

CKhalvashi

Nearlyold wrote: »

In simple terms as a sole trader you are not taxed on money taken out of your business or put into your business, you are taxed on the profit your business makes.

This.

I'd assumed a Ltd Co when posting my original reply.