Have 3 businesses but childcare want more proof of income now its appeal stage

Poshsalt

so we get 30 hours as both parents are working.

I have 3 businesses, 2 are company which no money comes out from no PAYE set up.

The 3rd is a events businesses.

So Im in a pickle, so I do an event and bring in £20k per event and I do two a year, but I keep that in that bank account, I don't put anything in my personal, as I don't spend money on anything for myself. £300 on rent and £100 petrol and food. The childcare was to see income of £2,500 a quarter, I bring in more.

So I think im doing great, Im bring in way more.

So previously they want to see proof of income which was £8k (net £4,500) for the first quarter, invoices from customers etc. An they say that's not enough.

Now its gone to appeal they want more and to see personal statements. The problem is in personal statements I might only have £1k a quarter because I only take out what I need.

But the main problem is the money I take out, is from the other Company Ltd, not the events business, so if I show I take out directors loans from the company is that ok or can there be a big problem?

martindow

Are you operating your events business as a sole trader?  If that is the case, the money you make from that is part of your income.  I don't think leaving it in a bank account or drawing it out into your private accounts makes any difference.

Poshsalt

martindow said:

Are you operating your events business as a sole trader?  If that is the case, the money you make from that is part of your income.  I don't think leaving it in a bank account or drawing it out into your private accounts makes any difference.

yes event is sole trader, thats what puzzles me, they said we need to see you putting money in your personal account, but for me if you make say £100k why would you put it into a personal account and sit there, an not reinvest it.

martindow

Poshsalt said:

martindow said:

Are you operating your events business as a sole trader?  If that is the case, the money you make from that is part of your income.  I don't think leaving it in a bank account or drawing it out into your private accounts makes any difference.

yes event is sole trader, thats what puzzles me, they said we need to see you putting money in your personal account, but for me if you make say £100k why would you put it into a personal account and sit there, an not reinvest it.

As a sole trader the business and you are considered one and the same.  They presumably want to see annual profit figures for your events business and you should be paying tax on this figure by self assessment.  Whether you leave money in a business account or move all or some of it to a personal account isn't really relevant.

Your limited company operates quite differently.

Have you an accountant?  In your place I would speak to them to see what to do for the best.  If your sole trader business has been running for some time it sounds as if you may have outstanding tax liabilities.  It is often best to let them sort out the best way forward.