Loan from Personal Savings to Sole Trader Business

I "loaned" some money from my personal savings account (money that has already been taxed etc) into my sole trader account in order to buy some equipment (plant and machinary) that was on sale at a highly discounted price that I didn't want to miss out on. I'm a bit unsure about the logistics of how I should repay this "loan" now though? and if there's a section to cover this "loan" on my end of year tax self assesment? It's also worth mentioning that I won't turnover enough to repay the "loan" by the end of this tax year April 5th. Any help appreciated.

Hi James Clark,

There is no distinction between you, the customer and your business if you are a sole trader. You cannot loan money to yourself. You have used your own money to buy equipment for your business.

In terms of the money going in and out, you can reflect this on the SA103 on the Capital Account section as 'Capital Introduced' & 'Drawings', this is optional however, but ultimately there are no tax implications either way.

Thank you.

Hi, want to ask if you are starting your sole trader business, and in addition to the capital introduced you have to put money in to pay the expenses for a while, till you get clients. Is money introduced after the original capital - deemed capital introduced or will it be classed as sundry income?

Hi DUGGIE,
This would not be income, it will be classed as expenses.
Expenses if you're self-employed
Thank you.