New business - Can I borrow money from personal Savings account as a loan

sukh38

Hi all,

I wish to set up a business but use my personal funds to fund the start up, however, I would like the funds to be paid back as a loan and be used as an expense is this possible?

Many thanks 

Jeremy535897

If you set up as a sole trader you and the business are the same, so you can't lend money to yourself. You are free to use your personal funds in your business, and add to them or draw them out as you wish. Any funds expended on business expenses will be allowable for tax, subject to the detailed rules.

DullGreyGuy

sukh38 said:

Hi all,

I wish to set up a business but use my personal funds to fund the start up, however, I would like the funds to be paid back as a loan and be used as an expense is this possible?

Many thanks 

What legal structure will you be operating under? If its a sole trader then as mentioned above, you cannot lend yourself money and any profits you make are automatically yours anyway so no "paying back"

If you form a limited company then you can loan the company money and it can repay you if/when it has the funds to do so