Hi. I've recently set up my own sandwich shop business as a sole trader but am continuing to work in fulltime employment. We've only been trading a few months but have come to the end of the tax year and I have a couple of queries.
I invested £25k of my own money and also took out a similar bank loan. I understand I can offset the interest on the loan as business expense. However if there anything I can do with the capital repayment? I felt for sure that I would be able to deduct that expense before calculating profit?
Similarly - my own investment. I've not yet been able to take anything out of the business towards earnings or just to repay my investment. But when I do - where does the repaying investment sit in my books. Do I have to pay tax on what I give back to myself if it was my investment and I'm just taking back what I put in?
Finally - I run all the admin from home. Can I offset partial mortgage interest for using an office in my home.
Any help / advice appreciated.
Regards,
Josie
I invested £25k of my own money and also took out a similar bank loan. I understand I can offset the interest on the loan as business expense. However if there anything I can do with the capital repayment? I felt for sure that I would be able to deduct that expense before calculating profit?
Similarly - my own investment. I've not yet been able to take anything out of the business towards earnings or just to repay my investment. But when I do - where does the repaying investment sit in my books. Do I have to pay tax on what I give back to myself if it was my investment and I'm just taking back what I put in?
Finally - I run all the admin from home. Can I offset partial mortgage interest for using an office in my home.
Any help / advice appreciated.
Regards,
Josie