Director's loan

[david justin]

Hello everyone,
Could you please clarify the difference between money invested into a business and what is expenses.
Am a bit confused.
Thank you very much

[zimba]

This topic has been discussed several times So please search the forum

uk-tier-1-entrepreneur-visas/diff-betwe ... 39417.html

[david justin]

Hello Zimba,
Thanks for your prompt reply.
I have gone through the link you sent to me and I am still confused.
Please can you please clarify for me.
Am pleading.
Regards

[marcnath]

Hello everyone,
Could you please clarify the difference between money invested into a business and what is expenses.
Am a bit confused.
Thank you very much

The question is one you should ask your accountant. In general, investment is money into the business and expense is money out of the business.

But I have a feeling you are not looking for then generic meaning.

Why don't you be more clear about what situation in your case are you confused about ?

Or is it something specific in the immigration rules or the guidance document that is confusing you ?

[david justin]

Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards

[akap12]

Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards

As far as I know, if the money is made as a direct cash investment, meaning coming out from your own personal account or transferred to your business account and spent, it counts as investment.
If you are using money already generated from the business within the business account, it will just be a business spending which is deducted before taxes.

Talk you your account to better understand this.

[marcnath]

Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards

As far as I know, if the money is made as a direct cash investment, meaning coming out from your own personal account or transferred to your business account and spent, it counts as investment.
If you are using money already generated from the business within the business account, it will just be a business spending which is deducted before taxes.

Talk you your account to better understand this.

Yes, if you have put the money from your own funds, it should be considered as an investment.
However, the evidence required for investment as a Director loan requires actual evidence of funds transfer into the business account. There seems to be some leeway if it was done as part of setting up the business (maybe done before the bank account was set up).
But that requirement is not there for investment as share capital, so it is always possible to do it that way.
As akap12 pointed out, talk to your accountant

[david justin]

Thank you so much for all your replies.
Very enlightening.
Another question is I am a soletrader, would director's loan be applicable in my situation when trying to prove investment.
Thank you all for your anticipated replies

[david justin]

Hello everyone,
Can bits and pieces of money from personal account into business account make up for Director's loan.
For instance transferring in smaller trenches rather than larger trenches
Thank you

[zimba]

Yes, have you read this : https://www.gov.uk/directors-loans ?

[david justin]

Thank you so much zimba.
Very much appreciated.
You just saved a life.
Thank you

[david justin]

Another question is I am a soletrader, would director's loan be applicable in my situation when trying to prove investment.
Thank you all for your anticipated replies