I'm in the process of completing my first tax return, and am on the part of the loan repayments in the disallowable expenses

I transferred from my personal account to the business account £XX,XXX this year, for cash flow (using the money I had in there from the wages I was paying myself)
I repaid the money throughout the year, back into my personal bank using cash from the sales, not from the business bank to personal bank, so although it looks like the business still owes me £XX,XXX it actually dosn't

Does using the money for cash flow class as a loan repayment, which i'm assuming it does, as it is giving me a rediculous profit to pay tax on which i just did not make! Apart from this i have a tiny amount of disallowable expenses, the rest are under the allowable expenses

Regards,
J
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Not sure why this situation is giving you a "ridiculous profit" since it is net flat. Bear in mind that the cash pot includes in bank and in hand, so across the two parts you have £Xk coming in and £Xk going out. Just assume that you banked the cash first and then paid it to your account, and your bank statement will be flat on "directors loans" over the two transactions and there would be cash income.

Loan repayments are not an expense, but interest can be. Here, however, you have not made a net loan since what went in came back out again, so in the absence of those two transactions the business is unaffected (it would just be running with a larger overdraft for that period).

Maybe I missed something?
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Thank you I see what I have done wrong!
Cheers, J
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Assuming no other transactions, start with balance of -Xk in the bank. You loan the company Xk. Company has 0 in bank and owes director Xk. Company earns Xk and repays director, bank balance 0, director owed 0.

So in short, company has had -Xk in bank, earned Xk and now has 0 in bank which is perfectly sensible. All you have done is made sure the bank balances were positive not negative over that period of time - if the bank had allowed you an overdraft of the same size then this might not have been necessary.

Therefore neither transaction should have any impact on P&L. (unless you chose to pay interest on the money, but that complicates matters)
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Thank you I see what I have done wrong!
Cheers, J


oops - misread that as "can you see what I have done wrong". sorry
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Assuming no other transactions, start with balance of -Xk in the bank. You loan the company Xk. Company has 0 in bank and owes director Xk. Company earns Xk and repays director, bank balance 0, director owed 0.

So in short, company has had -Xk in bank, earned Xk and now has 0 in bank which is perfectly sensible. All you have done is made sure the bank balances were positive not negative over that period of time - if the bank had allowed you an overdraft of the same size then this might not have been necessary.

Therefore neither transaction should have any impact on P&L. (unless you chose to pay interest on the money, but that complicates matters)
Thanks, I was just assuming I had to include it as a loan, rather than simply I had paid it back. I have had no formal loans from a bank, just leant the business cash and took it back out when I could!
Cheers,
J
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