I’ve got a couple of loans (credit card and directors loan) that I had to get to repair a roof at my rental property. I am paying them off monthly but wondering if these are allowable expenses? What does Quickfile do with them?
Director’s loan especially, as it was my post-tax income put back into the business, so if it’s taxed again as an ‘income’ to me then I’d have been taxed twice on this?
Hello @Kathryn_Peden
The Director’s loan account and credit card account would be shown on your balance sheet and not taken into account for your profit and loss.
I would reccomend speaking to your accountant to see what qualifies as allowable expenses as the support team are not registered accountants and would be unable to comment
Loan repayments don’t affect your profits, as they simply reduce the balance owed on the loan. The roof repair is the allowable expense, the loan is just the manner in which you paid for it. It’s possible you may be able to claim interest paid as an allowable expense, but it depends on the nature of the loan and whose name it’s in. You can’t claim interest on personal loans.
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