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Rusty-Robot
September 24, 2020
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Categorising family loans and cash injections.

  • September 24, 2020
  • 1 reply
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During my first year of self employment, my parents gave me cash injections.

 

Sometimes these were loans that I paid back, other times they were simply gifts (capital fronted?) to sink into my business.

 

I've just switched my accounts to quickbooks, and synced my paypal and bank accounts, and there seem to be limited options for how I can categorise these transactions. I have a couple of questions

 

1) How are personal/family loans transactions reported to HMRC during self assessment? Likewise, what about free cash injections?

 

2) For the sake of quick books self employed, under which category do I mark these? If I mark them as 'personal' I think they'll be excluded from the assessment altoghether. But 'Business income' doesn't seem right either.

 

I'm sorry for such a newbish question

 

Thanks in advance :)

Best answer by MaryLandT

I'm glad to help answer your questions for today, Rusty-Robot.

 

In QuickBooks Self-Employed, you need to categorise bank transactions depending on your self-employment needs.

 

Categories are based on SA103F deduction. And, you're right that transactions under Personal are exempted. They aren't part of the tax calculation.

 

In reference to categorising your loan transactions, you can check out this article: About SA103F Categories. It breaks down all available categories such as business and payment loans.

 

I also suggest consulting with your tax advisor or your accountant if you aren't sure of the categories. He/She might have specific instructions so taxes are reported correctly to your agency.

 

Stay in touch if you need additional information. I'm always right here to help categorise your transactions.

1 reply

MaryLandT
MaryLandTAnswer
September 24, 2020

I'm glad to help answer your questions for today, Rusty-Robot.

 

In QuickBooks Self-Employed, you need to categorise bank transactions depending on your self-employment needs.

 

Categories are based on SA103F deduction. And, you're right that transactions under Personal are exempted. They aren't part of the tax calculation.

 

In reference to categorising your loan transactions, you can check out this article: About SA103F Categories. It breaks down all available categories such as business and payment loans.

 

I also suggest consulting with your tax advisor or your accountant if you aren't sure of the categories. He/She might have specific instructions so taxes are reported correctly to your agency.

 

Stay in touch if you need additional information. I'm always right here to help categorise your transactions.

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