Could anyone help with this query? We have a loan which is relating to a rental property in the business, but the payments are being made from our personal account. What is the best way of inputting and tagging this and of course dealing with any tax implications
Hi @Baker6609
To mark it as paid from a personal account you need to:
- Tag the payment from your Proprietors Drawings Account if you’re a sole trader or in a partnership
- Tag the payment from your Directors loan account if you’re a Ltd company
In terms of tax implications, I don’t believe there should be any, but I’m not an accountant so it’s worth checking with yours to be sure.
I hope that helps?
Hi,
@QFMathew is right that there is no tax implications although it should not be classed as drawings but capital introduction in the business in a non-limited company. I do not know if Quickfile has this option.
Lastly if you are a limited company and the payments make the company insolvent (ie more liabilities than assets) make sure you include a going concern note in your accounts.
Hope that helps.
Kind regards,
Chris
Just to clarify that there is a capital introduced nominal code for Sole Traders, which is 3300. This isn’t always visible by default, so you may need to add this, which can be done through your chart of accounts and selecting ‘Add Popular Accounts’ under ‘More Options’
