For plan B business bank account is it possible to inject personal account money into

**GB9** · 20 February 2013, 09:26

Originally posted by sbakoola View Post

For plan B business bank account is it possible to inject personal account money into the business account or is this just not possible ? I am asking because I have reserves in my personal bank account and just in case there are cashflow problems in the business account I want to top it up. What form would such a cash deposit take if this is indeed possible ?

I know with my IT contracting business account this was not recommended as it blurred the taxable amount pertaining to the business related money, so I never did such a thing or even had to.

Any advice is recommended.

Don't see how there would be any confusion with taxable amounts. People put personal funds into businesses all the time. Have you asked your accountant. They should be able to tell you.

**rob s** · 20 February 2013, 09:38

Yeah - how do you think most small businesses get capitalised in the first place? Obviously declare it as your money so you don't get taxed on it as profit. Your accountant will know how to report this.

**KentPhilip** · 20 February 2013, 10:03

I would imagine you would class it as a loan.

**sbakoola** · 20 February 2013, 10:09

Originally posted by KentPhilip View Post

I would imagine you would class it as a loan.

a loan ? what if the plan B company spends it and it can never be paid back ? can you write the loan off ?

**b0redom** · 20 February 2013, 10:11

Err... that's what a director's loan is actually for.

**sbakoola** · 20 February 2013, 10:20

Originally posted by rob s View Post

Yeah - how do you think most small businesses get capitalised in the first place? Obviously declare it as your money so you don't get taxed on it as profit. Your accountant will know how to report this.

So what do you declare the money as that you put INTO the business account from the personal account ?

**northernladuk** · 20 February 2013, 10:27

Originally posted by sbakoola View Post

So what do you declare the money as that you put INTO the business account from the personal account ?

I presume you have an accountant?

**b0redom** · 20 February 2013, 10:46

Originally posted by sbakoola View Post

So what do you declare the money as that you put INTO the business account from the personal account ?

Err. A director's loan. It's not often I agree with NLUK's 'are you cut out for this....' comment, but really FFS.

**GB9** · 20 February 2013, 10:46

Originally posted by sbakoola View Post

So what do you declare the money as that you put INTO the business account from the personal account ?

From the business side or personal side? From the business side it depends on what you are giving in return e.g. are you issuing stock, paying a dividend, or a number of other things.

From a personal perspective it sounds like you are making an investment in your own business. Unless the business is in a specific industry then you can't write it off against other taxable income.

Get an accountant and tell us what they say.

For plan B business bank account is it possible to inject personal account money into