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Where Taxpayers and Advisers Meet

Profit/Loss and a Directors Loan

Joined:Sat Nov 11, 2023 6:08 pm
Profit/Loss and a Directors Loan

Postby pjm1001 » Sat Nov 11, 2023 6:18 pm

I set up a limited company, and then I lent that company £38000 for a deposit a house to buy and subsequently rent out for the business.

As the company paid out £38,000 for the deposit, is this huge loss taken into account for the profit and loss? I.e even if we make 10k in rental income in the first year, we made a loss of 38k on the deposit so have a net loss of 28k in the first year?

Or does the £38k loan from me count as profit for the company so cancels the loss out. I'm confusing myself here!

Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Profit/Loss and a Directors Loan

Postby pawncob » Sat Nov 11, 2023 9:42 pm

It's capital, not a P&L item.
With a pinch of salt take what I say, but don't exceed your RDA

Joined:Sat Feb 01, 2014 3:26 pm

Re: Profit/Loss and a Directors Loan

Postby bd6759 » Sun Nov 12, 2023 6:00 am

You need an accountant.

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