Repaying start up loan

I opened my business with personal finance and placed it in the balance sheet as me being a creditor. The business is now in a position to pay me back through profit it has made, do I have to pay corporation tax on this profit or do I put the payback as an expense?

Hi bubble,

The loan you have provided to the company has no impact on the company’s taxable profit.
So, when you make a loan to the company the amount loaned in not included in the company’s taxable profit.
When the company repays the loan, you must not deduct the amount repaid by the company when calculating the company’s taxable profit for corporation tax purposes. 

Thank you.