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  • Self Employed Loan Repayment Tax

    Hi, My Mrs has recently started her own business / self employed sole trader, She is registered for SA and will need to complete for 21/22. I loaned her £4000 (for training to gain the skills to execute her business) and then an additional £1000 as start-up capital to cover banking, marketing charges, admin materials etc until she gained her own income. The loan is interest free and is a loan, not an investment. I am struggling to understand whether she can pay both / either loan back to me as an "allowable expense" or not? Is anyone able to confirm? She is using cash based accounting model. Her earnings look like they will exceed £13,000. Many thanks in advance.