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  • RE: Sole Trader - Expenses owed to the owner

    Hello, Thank you for your reply! I have incurred the expenses after I have started trading but paid for them from personal bank account as I was still in process of opening my business account. My question was not about if I can claim them as I know I can and have all the receipts etc. The question was whether I can have the out-of-pocket expenses outstanding for years in my books without reimbursing them. Or whether there is a timeline by when expenses have to be reimbursed? Thank you.
  • Sole Trader - Expenses owed to the owner

    Good Afternoon, I am a sole trader and purchased van and other equipment to be used in my business from my personal bank account before my business bank account has been opened. In order to record these costs in my accounting software, I will need to record these as out-of-pocket expenses. However, I do not require them to be reimbursed back to me. Will there be any issue with them staying forever outstanding? Or should I reimburse them back to me after few years once my business generates enough cash to cover the initial costs instead of taking money out of the business as Drawings in the future? Is there any rule that expenses owed to the owner have to always be reimbursed (if yes, is there a timeline/deadline) or is it acceptable to keep them outstanding in the system for years/forever? Thank you very much in advance for your reply!